Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 10, Issue 43
We Know Energy
October 26, 2012 Energy Update
In this Issue
Editor's Note
Weather is the Price Driver
Natural Gas Fundamentals
Natural Gas Storage: Storage Injections Are Small But Fields Are Almost Full. Data Released Oct. 25, 2012
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 the Louisiana Well-Head
PJM Electricity
Graph - PJM 12-Month Average Peak Power Price
Local Cooling Degree Days*
Recent Features
Renewable Energy Markets 2012 Conference Highlights WGES Staff and Customers (Oct. 5, 2012)


The Brick Companies Converts Entire Maryland Portfolio to 100 Percent WGES CleanSteps® WindPower and Reduces its Carbon Footprint (Sept. 28, 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
Weather is the Price Driver
Week in Review for October 19-25, 2012

The past two weeks of warmer-than-normal temperatures have put the brakes on the recent price spikes. As you may recall, natural gas prices rose 17% and electricity prices rose 8% during the first cold spell that lasted from September 7 to October 11, 2012. However, with the recent arrival of warmer temperatures, energy prices closed flat last week.

For this seven-day report period, the average 12-month price for natural gas on the NYMEX fell 2.3% and the 12-month average price for peak power on the PJM remained flat from the previous week.

For now, analysts agree that weather is the main factor affecting energy prices. If you can predict the weather, you may be able to predict the short-term direction of energy prices. Along with the arrival of Hurricane Sandy on the East Coast early next week, the 8 to 14 day forecast now calls for colder-than-normal temperatures east of the Mississippi.

Another variable worth noting is that we are entering this winter's heating season with the natural gas storage fields operating near the full mark of 4,000 Bcf. However, the lesson we learned from this past summer is how quickly the gas-storage bubble can vanish during the hotter months. Since May 3, 2012, the gas surplus shrank from 55% above the five year average to only 7% above the five-year average. Natural gas, at these price levels, is in high demand as power plants are switching from coal to natural gas to generate electricity.

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