Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 39
We Know Energy
September 28, 2012 Energy Update
In this Issue
Editor's Note
Prices On the Rise
Focus on Renewable Energy
The Brick Companies Converts Entire Maryland Portfolio to 100 Percent WGES CleanSteps® WindPower and Reduces its Carbon Footprint
Natural Gas Fundamentals
Natural Gas Storage: Largest Injection of Season But Bubble Shrinks Again. Data Released September 27, 2012
Baker Hughes Rotary Rig Count For Natural Gas
NYMEX Natural Gas Monthly Settlements For the Past 12 Months
NYMEX Values Per Month For the Forward 12 Months
NYMEX Graph For Natural Gas - 12 Month Average Price Per Therm at Louisiana Well-Head
PJM Electricity
Graph - PJM 12-Month Average Peak Power Price
Local Cooling Degree Days*
Recent Features
WGES-owned Solar Projects in Maryland Dedicated, Activated (July 20, 2012)

WGES Announces Special Offers to Support Philadelphia’s Quest to Become the Nation’s #1 Green Power Community (June 22, 2012)

WGES and Sterling Planet Donate $126,000 to the Chesapeake Bay Foundation’s Carbon Reduction Fund; Help Plant 1,500 Trees in Frederick, Md. (April 27, 2012)

WGES Provides Green Energy Products to Mandarin Oriental, D.C. (April 20, 2012)

WGES Renewable Energy Products Are Now Green-e Energy Certified (April 6, 2012)

New MSN Video Features a WGES Customer's Green Power Commitment (March 23, 2012)

Our New Wind Power Partners
Green Power Leadership Award Winner - U.S. Department of Energy

Panera Bread of Maryland (Lemek LLC)
Calvary Baptist Church
Mountain View Community Church
Caser Chavez Public School
PB Dye Golf Club
Behnke Nurseries
Townes of North Creek
Victory Racing Plate Company
Village Management, Inc.
Mt. Airy Bicycles
College Park Bicycles
Donatelli Development
Blue Ocean Realty
Mandarin Oriental
Bank of Georgetown
Embassy of Bosnia Herzogovina
Baltimore International College Foundation
The Shakespeare Theatre Co.
Kaiser Foundation Health Plans of Mid-Atlantic States

Visit wges.com/partners for full list of WGES Wind Power Partners.

To find out more about a green power purchase for your organization, call 703-793-7578, or visit wges.com/commercialwind.

For more information, contact your WGES Account Manager or wges_lgc@wges.com.
Editor's Note
Prices On the Rise
Week in Review for September 21-27, 2012

While it is true that natural gas and electricity prices been trading in a relatively tight band over the last three months, prices have increased two of the last three weeks and are now trading on the high side of the band.

For this seven-day report period, the average 12-month price for natural gas on the NYMEX rose 9.4% and the 12-month average price for peak power on the PJM rose 4.7%. As a result of this week's unusually large price increase, natural gas prices have risen 12.7% and electricity prices have risen 6% since Sept. 7, 2012.

Analysts are having a tough time connecting the recent price spikes to any changes in the market fundamentals. One possible explanation is that the market is focusing on the fact that winter demand is on the way. The eight to 14 day forecast is now calling for colder-than-normal temperatures in the northeast. Cold temperatures can place upward pressure on prices.

Another possible explanation may be tied to the shrinking gas bubble. The power generation sector burned natural gas instead of coal this summer and reduced the size of the gas bubble. Since May 3, 2012, the gas surplus has shrunk from 55% above the five-year average to 8.6% above the five-year average. However, this is a relatively weak reason for a price increase, given the fact that storages will be full prior to the start of the November 1 heating season.

For now, prices are still very attractive relative to the last nine years, but the market is looking for any reason it can find to jump up. Stay tuned. Mother nature is unpredictable and can have a huge impact on the direction of energy prices.

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