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Reasonable Natural Gas Prices Are Likely For The Upcoming Heating Season
(Energy News - September 2009)

It's Still Smart To Conserve

With tight budgets and a need to manage costs, many businesses are wondering what to expect for natural gas prices this heating season.

The outlook is positive. Natural gas prices for the coming months are projected to remain below $6.00 per dekatherm. This compares favorably to last year's heating season when prices hovered in the $7.00 to $8.00 per dekatherm range.

"One reason we are in good shape as we head into the fall is that we have plenty of natural gas in storage that we have been purchasing over the summer when prices were low — around $3.00 and $4.00 per dekatherm at times," said Ron Mosnik, Wisconsin Public Service's Director of Gas Supply. "When we pull this gas from storage to help meet customers' needs in fall and winter, the lower prices we paid this summer are passed on to them."

The natural gas WPS has in storage accounts for about 35% of the supply available for customers for this heating season.

Other factors contributing to favorable natural gas prices include:

• A minimal amount of hurricane activity to date. Natural gas prices typically rise when major tropical storms damage production facilities in the Gulf of Mexico. This has not been the case, but it is something to monitor as hurricane season continues through November.
• Lower demand. With the economy still struggling, many businesses have cut back operations and in turn are using less natural gas. According to the Energy Information Administration, natural gas consumption will decline by more than 2% nationwide this year and remain unchanged in 2010.

It's Always Wise to Conserve

Even though prices are expected to remain low this winter, it is still a good idea to conserve natural gas whenever possible.

• Have your heating system inspected by a qualified technician regularly.
• Lower your thermostat during non-business hours.
• Open blinds and shades during the day. Close them at night to help retain heat.
• If you are purchasing new natural gas equipment or appliances for your company, look for the ENERGYSTAR® label, which indicates the product is rated for superior energy efficiency.

For More Information

If you have questions about gas supply or prices, contact the Business Solutions Center at 877-444-0888, or your account executive.

Natural Gas Average Wellhead Prices
($ per thousand cubic feet)

2007	2008	2009	2010
$6.38	$8.08	$3.75 projected	$5.12 projected

Source: Energy Information Administration