Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 11, Issue 23
We Know Energy
June 7, 2013 Energy Update
In this Issue
Editor's Note
Mild Weather and Gas Storage Drive Prices Down for Second Week in a Row
Natural Gas Fundamentals
Natural Gas Storage: Largest Injection in 20 Months. Data Released June 6, 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 Cooling Degree Days*
Recent Features
WGES Selected to Provide Groundswell 100 Percent Wind Power for its Community Power Program Bid (May 24, 2013)


 


WGES Presents $88,000 to Chesapeake Bay Foundation at Annual Earth Day Tree Planting (April 26, 2013)


 


Washington, D.C.’s Union Station Now Powered by 100 Percent Wind Energy Provided by WGES (April 12, 2013)


 


New Contract with WGES Helps D.C. Retain Position as the Nation’s #1 Green Power Community (March 8, 2013)


 


WGES and Sterling Planet Renew Unique Partnership and CleanSteps® Carbon Offsets Agreement (March 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
Mild Weather and Gas Storage Drive Prices Down for Second Week in a Row
Week in Review for May 31 - June 6, 2013

Energy prices fell for the second week in a row. During this seven-day report period natural gas prices on the New York Mercantile Exchange (NYMEX) fell 4.2% and the average price for peak power on the PJM fell 3.0%.

The usual culprits, weather and storage, get most of the credit for this week's price reduction. These two variables work hand-in-hand to place downward, and in some cases upward, pressure on energy prices.

For example, this week we experienced mild temperatures. This mild weather kept a lid on the cooling demand, allowing more natural gas to be directed to the storage fields rather than to power plants. In fact, this week's natural gas storage injection was 111 Bcf, the largest injection in the last 20 months. Mild temperatures and large gas injections tend to place downward pressure on energy prices, while hot temperatures and low injections can place upward pressure on prices.

There are many other variables that can influence energy prices. Two such variables to keep an eye on in the coming months are hurricanes and the state of the economy. Hurricane season started June 1st. Hurricanes can disrupt the production process in the Gulf of Mexico, impacting supply. A robust economy can bolster the demand component. According to the U.S. Energy Information Administration (EIA), "the industrial sector is responsible for nearly a third of total energy used in the Unites States." In other words, performance in this economic sector can have significant impact on energy prices, so keep an eye on the market.

Natural gas and electricity are two of the most volatile commodities traded in the world. However, the good news for now is that both natural gas and electricity prices are trading near their second lowest level in nine years. This may be a favorable time to look at an early renewal strategy.

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