Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 11, Issue 29
We Know Energy
July 26, 2013 Energy Update
In this Issue
Editor's Note
If You Can Predict the Weather, You May Be Able to Predict Future Pricing Trends
Spotlight on Sustainability
Washington Gas Energy Services Receives District of Columbia's 2013 Mayor's Sustainability Award
Natural Gas Fundamentals
Natural Gas Storage: Below Average Injection For Second Week In A Row. Data Released July 25, 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 Ranked Among Top Retail Energy Suppliers in Customer Satisfaction by J.D. Power (July 12, 2013)


 


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)


 


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
If You Can Predict the Weather, You May Be Able to Predict Future Pricing Trends
Week in Review for July 19-25, 2013

In last week's Energy Update we reported that hot weather had placed some upward pressure on energy prices as the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) rose 2% and the 12-month average price for peak power on the PJM rose 1.5%.

For this seven day report period, however, the 6-10 day weather forecast called for a cool down which placed downward pressure on energy prices. This week, the average 12-month price for natural gas on the NYMEX fell 3% and the 12-month average price for peak power on the PJM fell 2%.

The last two weeks provide a good example of how summer temperatures can impact pricing. As you may recall, last week the temperatures were hot and prices increased. As temperatures rose, the power plants needed more natural gas to run their power plants. In fact, according to the Energy Information Administration (EIA), last week the extreme heat in the Northeast and Mid-Atlantic regions caused "near record consumption of natural gas for power consumption." This increased demand from the power plants tends to place upward pressure on both natural gas and electricity prices.

However, this week energy prices fell as the temperatures moderated. Additionally the 6-10 day forecast, calling for the return of normal to below normal temperatures east of the Mississippi, placed some downward pressure on energy prices.

It's safe to say that summer temperatures can definitely impact energy prices and will continue to be the wild card during the next two months.

Note: According to EIA, "consumption of natural gas for power generation has been higher this year than the previous five year average (2008-2012), likely the result of significant declines in the Henry Hub price since 2008. This has contributed to an increase in the gas-fired share of total power generation."

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