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The October wholesale natural gas contract rallied after the EIA storage report came out yesterday with a 64 bcf injection for the week ending September 2nd, settling up $0.04 at $3.98 on the day. The natural gas market seems to be adequately priced at this $4.00 price level and it seems that we are just waiting for the first indications of heating demand before the wholesale price begins its annual pre-winter rally. The financial markets this morning will be anticipating a reaction to President Obama speech on jobs creation and thus creating a futuristic demand in the natural gas market. On the tropical front, tropical Storm Marie is predicted to lessen in the next 48 hours as it nears the Dominican Republic and Tropical Storm Nate is still in the Bay of Campeche without giving any indication as to which way it is headed. One other point according to the NRC (Nuclear Regulatory Commission) to note is that last weeks earthquake in Virginia shook the North Anna nuclear plant twice as hard as it was designed to withstand. Although the NRC has not yet found any signs of damage, retrofits for safety may be imposed creating increased cost and potentially more demand for natural gas down the road.
As we discussed yesterday with energy efficiency nationwide, PPL Electric Utilities announced a new program to help small businesses reduce power consumption and save on their electric bills. The "E-power Direct Discount" program covers up to 75 percent of the cost of upgrades such as energy efficient lighting and commercial refrigeration equipment, PPL said. With the Allentown power company paying most of the bill, participating businesses can see savings in their first year of participating because the savings on their electric bill will outweigh their investment, PPL said. PPL will inspect and assess interested businesses, give recommendations for upgrades, a cost estimate and projected savings so the business owner can decide if the program is worth it. Allentown Mayor Ed Pawlowski encouraged business owners to consider the program. The city offers low-interest loans for energy efficiency upgrades that can complement PPL's program and reduce the initial cost, he said. One example was a pharmacy replacing inefficient fluorescent lights through the program. The company paid $1,270 and PPL paid $4,900 to replace the lighting. The pharmacy is expected to save $3,100 annually on its electric bill. PPL is under a state mandate to reduce electric consumption in its service area and the company has allocated $264 million for a variety of programs, including the new program for small businesses, to meet that goal.
In the lone start state this summer, Texas just finished the hottest June through August on record in the U.S., the National Weather Service said Thursday. Weather service meteorologist Victor Murphy told The Associated Press that Texas' 86.8 average beat out Oklahoma's 85.2 degrees in 1934. That Dust Bowl year is now third on the list for the three-month span, behind No. 2 Oklahoma's heat wave this June through August (86.5 degrees). Both states and others in the nation's southern tier have baked in triple-digit heat this past summer. Texas had its hottest June on record, the fifth warmest month overall, and July was the warmest month ever. The reason seems for all this hot dry weather is located thousands of miles away in the Pacific Ocean. The La Nina phenomenon is associated with cooler sea surface temperatures in the central and eastern tropical Pacific and as a result brings dry conditions to the southern U.S. states. Unfortunately, the forecast shows the likelihood of La Nina re-emerging next year. While Texas hasn't just been hot this summer, it's also in the midst of its worst drought since the 1950s and enduring its driest single year going back to 1895.
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