Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 11, Issue 33
We Know Energy
August 23, 2013 Energy Update
In this Issue
Editor's Note
Hot Weather to Blame for Price Increase
Spotlight on Sustainability and Compliance
Deadline Approaching for D.C. Energy and Water Benchmarking Requirement
Natural Gas Fundamentals
Natural Gas Storage: Above Average Injections Continue. Data Released August 22, 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
Washington Gas Energy Services Receives District of Columbia's 2013 Mayor's Sustainability Award (July 26, 2013)


 


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
Hot Weather to Blame for Price Increase
Week in Review for August 16-22, 2013

For the second report week in a row, but only the second time in five weeks, natural gas and electricity prices rose. During last week's seven-day period, the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) rose 3% and the 12-month average price for peak power on the PJM rose 1%.

Once again, weather gets most of the blame for last week's price increase. According to the Energy Information Administration (EIA), average temperatures during the first three days of last week were warmer than the same time period spanning the previous five years.

Additionally, the National Oceanic and Atmospheric Administration (NOAA) predicted that most of the country would experience warmer-than-normal temperatures during the first week of September. During these recent hot spells, more natural gas was diverted to the power plants and less gas was available for injection into the storage fields. This behavior placed upward pressure on energy prices, as witnessed over the last two weeks.

Do not panic, however. The summer demand season is almost over and the natural gas supply outlook is positive. According to EIA, "U.S. proved reserves began growing sharply in the mid-2000s as operators adopted expanded horizontal drilling programs and applied new hydraulic fracturing techniques in shale formations." Thanks to this shale gas phenomenon, natural gas production numbers are operating near record high levels.

Despite the turbulence caused by the recent hot weather, supply is high and energy prices are still trading at very attractive levels. For now, both natural gas and electricity prices are trading near their second lowest level in nine years.

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