Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 11, Issue 9
We Know Energy
March 1, 2013 Energy Update
In this Issue
Editor's Note
Energy Demand is on the Rise and so are Prices
Spotlight on Carbon Offsets
WGES and Sterling Planet Renew Unique Partnership and CleanStepsŪ Carbon Offsets Agreement
Natural Gas Fundamentals
Natural Gas Storage: Much Larger Withdrawal Than Expected. Data Released February 28, 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
Local Heating Degree Days*
Recent Features
WGES and Shell Energy Enter Into Strategic Supply Arrangement (Feb. 22, 2013)


Washington Gas Energy Services Receives Green-e Energy Certification of New WGES PA WindPower Renewable Energy Product (Feb. 8, 2013)


Ridgewells, the D.C. Area's Largest Catering Company, Purchases WGES Green Products (Feb. 1, 2013)

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

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
Energy Demand is on the Rise and so are Prices
Week in Review for February 22-28, 2013

Last week energy prices moved upward. The average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) rose 6% and the 12-month average price for peak power on the PJM rose by 2.7%.

The market focused on three variables that placed some upward pressure on prices: weather, storage and projected natural gas demand.

On the weather front, NOAA's 14-day forecast predicted colder than normal temperatures east of the Mississippi for the first half of March. Cold weather increases demand, and normally places upward pressure on prices.

Next, the U.S. Energy Information Administration released their weekly storage report which showed a much larger-than-expected withdrawal of 171 Bcf. The five-year average withdrawal for this time period was 118 Bcf. This withdrawal had some analysts speculating that demand was finally catching up with supply. In fact, storage levels were 12% below last year's levels. This larger than expected withdrawal placed some upward pressure on prices.

Lastly, a number of reports indicated that the country was experiencing an increased demand for natural gas from the industrial sector. For example, according to EIA, "natural gas net generation rose by 21% from 2011 to 2012 as low natural gas prices encouraged more natural gas consumption in the electric sector."

In aggregate, the reports painted a picture that energy demand was climbing while natural gas production, relative to the last 12 months, was flat. This potential tightening of supply and demand was enough to spook the market last week.

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