Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 11, Issue 3
We Know Energy
January 18, 2013 Energy Update
In this Issue
Editor's Note
Old Man Winter Has Arrived But For How Long?
Natural Gas Fundamentals
Natural Gas Storage: Larger-Than-Expected Withdrawal. Data Released January 17, 2013
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
PJM Graph for Electricity - 12 Month Average Peak Power Price
Weather
Local Heating Degree Days*
Recent Features
WGES Announces Pennsylvania Wind Power Product, Offers Southeastern Pa. Communities Incentives for Purchases (Nov. 30, 2012)


 



Renewable Energy Markets 2012 Conference Highlights WGES Staff and Customers (Oct. 5, 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
Carbon

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
Old Man Winter Has Arrived But For How Long?
Week in review for January 11-17, 2013

The Bulls were the winners this week as prices spiked upward. For this seven-day report period the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) rose 6.8% and the 12-month average price for peak power on the PJM rose by 2%.

There are two likely reasons for this week's price spike. The first reason is obvious. The second reason is less obvious, but is becoming a larger factor each passing week.

First, of course, is the weather. Weather is the big variable that impacts energy prices. As you may recall, December 2012 ranked as the 10th warmest December on record. So, it is no surprise that the arrival of the colder temperatures is now placing upward pressure on prices.

The second reason behind the price spike may be linked to fuel switching by power plants. More power plants are switching from coal to natural gas. According to Bentek Energy, the estimated daily natural gas used to produce electric power during the first six months of 2012 increased 24% compared to the same period for 2011.

According to the Energy Information Administration (EIA), power plants are using more gas because we are experiencing "a structural shift toward generating more electricity from natural gas-fired plants." The natural gas-fired power plants are getting more use because they are cleaner and more efficient than the older coal-fired plants. As the demand for natural gas increases, so does the upward pressure on natural gas prices.

Stay tuned. The updated weather forecast from the National Oceanic and Atmospheric Administration (view forecast map) is now calling for the return of warmer-than-normal temperatures during the last week of January. Warm weather tends to place downward pressure on energy prices.

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