Volume 13, Issue 1 January 5, 2015
In this Issue
Editor's Note
It Comes in Threes
Renewable Energy
WGES Recognized with EPA Green Power Leadership Award
Natural Gas Fundamentals
Natural Gas Storage Update: Another Tiny Withdrawal
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*
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 WGL Energy Account Manager or wges_lgc@wges.com.
Editor's Note
It Comes in Threes
Two Weeks in Review for Dec. 19, 2014 - Jan. 2, 2015

Happy 2015! Due to the holidays this update will cover the extended period of Dec.19, 2014  to Jan. 2, 2015.  

Since many clients were vacationing at some point during December, I wanted to provide a quick snap shot of the entire month. During the first eighteen days of December 2014, moderate temperatures and record high gas production quietly placed downward pressure on energy prices as natural gas prices fell 6% while electricity prices fell 1%. However, over the last two weeks, the "Bears" came out of hibernation. For  this fifteen day report period, the average 12-month price for natural gas on NYMEX fell 12% closing at $0.3118/therm and the 12-month average price for peak power on the PJM fell 7%. 

This price drop can be attributed to three key variables. First, December temperatures in much of the country were warmer than normal. In fact, if you visit  the degree data attached to this newsletter, you will see that local temperatures were a whopping 17% warmer than normal. A warm December dampened heating demand and placed downward pressure on energy prices.

The second variable that got a lot of attention was the natural gas storage report. Thanks to the warm weather, natural gas that was normally burned in your furnace was re-routed to the underground storage caverns. This unburned gas reduced the storage deficit. On December 5, 2014, storage levels were 9% below the five-year average. However, as of last week, storage levels were only 2% below the five-year average. The reduced storage deficit helped place downward pressure on energy prices

Lastly, the third variable that continued to grab headlines was production. According to the EIA, "in the past several weeks, natural gas production levels have risen to record highs."  

The trio of record high supplies, surprisingly low demand, and the disappearing storage deficit were too much for the Bulls to handle during the month of December. However do not be lulled to sleep, winter is only 16 days  old.

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