Volume 15, Issue 87 | November 12, 2018

Take the Guesswork Out of Your Winter Heating Bill

Start planning now for colder weather.

 

If you use natural gas to warm your home, your winter heating bill is determined by a number of factors. These factors include seasonal weather conditions, market supply and demand, the amount you use and the price you pay. With the uncertainty surrounding these factors, predicting your heating bill often involves a fair amount of guesswork.

While you may not be able to directly control the weather or even market supply and demand, you can control the amount of natural gas you use and the price you pay per therm. For the things you can control (and even for those you can’t), a competitive retail energy supplier like WGL Energy Services Inc., (WGL Energy) can help you start planning now for colder weather.

Fall and winter weather
WJLA-TV (ABC7) Chief Meteorologist Bill Kelly is predicting a colder, snowier winter season than we’ve seen in recent years. When colder weather arrives, a utility’s natural gas rates (i.e., the price you pay per therm) can vary. In the District, Maryland and Virginia (DMV), residential natural gas customers can choose a retail energy supplier and protect themselves against varying utility rates, with a one- or two- year fixed-price natural gas supply plan.

Market supply and demand
Natural gas storage levels are among the lowest they’ve been in five years. Colder-than-normal weather can put upward pressure on prices because supply is often unable to meet short-term increases in demand.

Domestic production and demand for natural gas are rising; in fact, the demand for natural gas in the first half of 2018 was, on average, 12% higher than it was during the first half of 2017. Due to few comparable alternatives, even small changes in supply or demand can result in large price movements. A fixed-price natural gas supply plan can help insulate homeowners from the effects of unexpected price changes during the winter months.

The amount you use
It’s been said the cheapest energy is the energy you don’t use. Experts agree that energy efficiency – and reducing energy usage – is one of the easiest and fastest ways to lower your winter heating bill. Competitive retail energy suppliers like WGL Energy offer a variety of tips for improving energy efficiency and reducing usage in your home. These simple tips include: changing the air filters in your furnace on a monthly basis, caulking around doors and windows and installing weather stripping on doors.

The price you pay
A fixed-price natural gas supply plan is designed for residential customers who want the peace of mind that comes from knowing their natural gas supply price will remain the same over their entire contract period. Energy choice allows homeowners in the DMV to shop around for the best plan. Retail energy suppliers like WGL Energy typically offer special offers for customers who plan early for winter weather.

Click here to view our special pricing on natural gas plans for your home.

Let us help you take the guesswork out of your heating bill this winter with a WGL Energy one- or two-year fixed price natural gas supply agreement. Act now before colder weather arrives.

To learn more, visit wglenergy.com and enter promo code WINTER.


Editor's Note

Colder than Normal Weather Pattern Across PJM

Week in review for November 4 - November 10, 2018

 

On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday, November 2, 2018 was 3,208 BCF. This is an increase of 65 BCF from the previous week. Inventories are currently 580 BCF lower than the same period last year, and 621 BCF below the 5-year average of 3,829 BCF. This deficit could become very bullish for prices if production can’t keep up with load demands as we move deeper into the winter months. 

Cold temperatures have arrived and we are seeing significant changes in the upcoming weather forecasts. A colder than normal pattern has developed across the PJM region and is expected to remain in place throughout the 14-day forecast.

Markets have rallied this week because of the colder weather outlook, and both power and natural gas prices have moved higher. The PJM Western Hub 12-Month curve gained 3.3% and the NYMEX natural gas 12-month curve increased 3.9%.

As a reminder, our offices are closed on Monday, November 12, 2018 in observance of Veteran's Day. We hope you join us in honoring and thanking them for their service in the United States armed forces.


This past week's market information is provided as a courtesy to our customers and is not indicative of, nor should be relied upon, as representative of future transactions.


Weather

Local Cooling Degree Days*

 


Washington, D.C. Area Cooling Degrees Days* 

 

May - 18

June - 18

July- 18

Aug- 18

Sept - 18

 

 Actual

231.5 

336.5 

 484.5

 496.5

315.5 

 

 Normal

115.9

324.0 

 471.6

423.4 

214.6 

 

 Departure from Normal

 99.7%

4% 

           3%

17% 

 47%

 

 Warmer

 Warmer

Warmer 

 Warmer

 Warmer

 

*Cooling degree days reflect the Washington, D.C. area and are calculated by comparing the day’s average temperature to a 65 degree baseline.  If the day’s average temperature is below 65, there are no cooling degree days that day.  If the average temperature is greater than 65 degrees, then subtract 65 from the average temperature to find the number of cooling degree days.