Washington Gas Energy Services: A Washington Gas Affiliate Complany
Volume 12, Issue 9
We Know Energy
March 7, 2014 Energy Update
In this Issue
Editor's Note
A Year To Forget
Spotlight on Clean Currents Commercial Accounts
Clean Currents Customers can look to WGES for renewable energy products
Natural Gas Fundamentals
Natural Gas Storage Update: Storage Deficit Now 43% Below 5 Year Average. Data Released March 6, 2014
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
Washington Gas Energy Services Acquires More Than 20,000 Electricity and Natural Gas Customers from Castlebridge Energy Group (November 1, 2013)


 



Washington Gas Energy Services to Offset Carbon Impact of Upcoming RETECH Conference (August 30, 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
A Year To Forget
Week in Review for Feb. 28 - March 6, 2014

Last week analysts were surprised to see natural gas prices fall 6% on the New York Mercantile Exchange (NYMEX) and 5% for peak power on the PJM. Unfortunately, yet as predicted, this price drop was short lived. For this week's seven-day report period, the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) rose 2.4% and the 12-month average price for peak power on the PJM rose 4%.

The Bears did not have a chance against the Bulls this week. The extremely cold temperatures and the  huge storage withdrawals kept upward pressure on both natural gas and electricity prices .

The Bears have not been able to place much downward pressure on energy prices this winter because heating demand has been too great. In fact, the month of January 2014 was brutal, coming in 12% colder than normal, and was marked by record energy demand across the country. In that same month the U.S. consumed more gas than any other month in history and power burn set an all-time record high. February 2014 followed this trend, coming in 5% colder than normal. Then, to add insult to injury ,on March 4, 2014, the temperatures at  Dulles International Airport dropped to a record breaking low of -1 degrees.  

These cold temperatures created an unusually large demand for natural gas heating this winter which depleted the natural gas storage fields and placed upward pressure on energy prices.  The natural gas storage fields are  now 38% below the five-year average and the storage deficit continues go grow. Last year at this time, natural gas inventories were 15% above the five-year average.

If the storage deficit continues to grow during the month of March, it will be a challenge for the utilities to replenish the caverns during the traditional refill season of April 1st to Oct 31st.  This additional demand component could place upward pressure on energy prices during the summer months.

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