Volume 18, Issue 10 | June 7, 2021

Celebrating 25 Years of Providing Local, Trusted, and Reliable Solutions

For 25 years, WGL Energy has been able to maintain its longevity in the market because of YOU! We have remained your trusted and reliable energy supplier through your continued support. We thank you and with your help, plan to reach another 25 years.


Editor's Note

PJM Capacity Clears Low for June 2022 May 2023

Week in Review for May 30 June 5, 2021

On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday May 28, 2021 was 2,313 BCF.  This was an increase of 98 BCF from the previous week slightly higher than average market expectations. Inventories are now 386 BCF lower than last year at this time, and 61 BCF below the 5-year average.

Forward energy markets were up this week, almost entirely from action on Tuesday as the market absorbed hotter weather forecasts that came out over the weekend. The NYMEX natural gas 12-month strip (Jul 21-Jun 22) ended up 2.8% and the PJM Western Hub ATC (7X24) 12-month strip was up 2.2%.  

In potentially better news for energy consumers, PJM Base Residual Capacity auction for June 2022 - May 2023 resulted in much lower prices than for the previous year (June 2021 - May 2022).  Resulting prices were also lower than most market expectations.  Prices vary by zone but patterns are similar throughout the Mid-Atlantic as partially illustrated in the BGE and PPL Capacity graphs shown below.  PJM auctions result in a $/MW-day price, and thus individual customer’s $/MWh impact will vary based on their Capacity PLC to Annual MWh consumption, but typical customers saw an $4-$6/MWh increase in June 2021 – May 2022 price impact versus the previous two years, but most of that reverses with the impact coming back down $3-$5 in June 2022-May 2023.  Please contact your WGL Energy Business Development Manager for more information.

 



Weather

Washington, D.C. Area Cooling/Heating Degree Days

  

 

*Nov-20

*Dec-20 

*Jan-20 

*Feb-20 

*Mar-21 

*Apr-21 

Normal 

467

669

848

 677

546

236

 Actual

 321

731

819

763

435

238

Departure from Normal 

31%,
Warmer 

9%,
Colder

3%,
Warmer

13%,
Colder

20%,
Warmer

1%,
Colder

Cooling degree day (CDD) data is for the Washington, D.C. area and is 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 day’s average temperature is greater than 65 degrees, then subtract 65 from the average temperature to find the number of cooling degree days.

*Heating degree day (HDD) data is for the Washington, D.C. area and is calculated by comparing the day’s average temperature to a 65 degree baseline. If the day’s average temperature is above 65, there are no heating degree days that day. If the day’s average temperature is less than 65 degrees, then subtract that average temperature from 65 to find the number of heating degree days.