WSI Energycast Outlook Calls for Cooler July in Northeast, but Warmer Again August and September; Biggest Summer Heat to Settle in West

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WSI Corporation issued the seasonal outlook for the upcoming three-month period (August-October).

WSI Corporation issued the seasonal outlook for the upcoming three-month period (August-October) on July 15. WSI expects the upcoming three-month period to average cooler than normal in the Southeast and in the major population centers along the Pacific Coast, with warmer-than-normal temperatures elsewhere, especially in the northern Rockies and northern Plains. The WSI seasonal outlooks reference a standard 30-year normal (1971-2000).

The monthly breakdown for the upcoming spring season follows:
In August:
Northeast -- Warmer than normal
Southeast -- Cooler than normal
N Central -- Warmer than normal
S Central -- Warmer than normal, except south TX
Northwest -- Warmer than normal, except coastal locations
Southwest -- Warmer than normal, except coastal locations

Expected Market Impact (provided by ESAI)
The WSI August forecast indicates warmer-than-normal temperatures throughout the Northeast and North Central regions. Cooler temperatures will prevail in the Southeast, California and most of Texas. Injections to gas storage are likely to be in the normal range during August. Lower hydro availability in the West could be a bullish factor for gas demand. Power prices in the Northeast markets will be firm with warmer-than-normal temperatures and a slightly higher probability of heat events. With normal-to-cooler temperatures expected in California and Texas, power prices should remain moderate in relation to prevailing natural gas prices.

In September:
Northeast -- Warmer than normal
Southeast -- Warmer than normal
N Central -- Warmer than normal
S Central -- Cooler than normal, except east TX
Northwest -- Cooler than normal
Southwest -- Cooler than normal

Expected Market Impact (provided by ESAI)
The WSI September forecast indicates warmer-than-normal temperatures in the Northeast with cooler temperatures prevalent throughout most of the western U.S. Injections to gas storage are likely to be slightly higher-than-normal due to the lower probability of late season heat in most areas. Cooler temperatures in September should moderate power prices except in the Northeast where warmer temperature expectations would be moderately bullish for power prices.

In October:
Northeast -- Warmer than normal
Southeast -- Warmer than normal
N Central -- Warmer than normal
S Central -- Warmer than normal
Northwest -- Cooler than normal, except ID/MT/WY
Southwest -- Cooler than normal, except NM

Expected Market Impact (provided by ESAI)
The WSI October forecast indicates warmer-than-normal temperatures in the Northeast and North Central regions with cooler temperatures west of the Rockies. Injections to gas storage are likely to be close to normal. Power prices in most regions will be more dependent upon generator planned maintenance programs as load will be moderate with shoulder season temperatures.

According to WSI seasonal forecaster Dr. Todd Crawford, "We expect August to be characterized by above-normal temperatures in the northern US and relatively cool temperatures across much of the southern US. The most intense heat will likely be confined to the Northeast, northern Rockies, and northern Plains. The very wet ground in the Ohio Valley and Great Lakes states will likely limit the magnitude of the heat in those regions. A continuation of the relatively cool and wet recent pattern will continue in the Southeast. As fall approaches, above-normal temperatures will continue to persist in the northeastern quarter of the country, with below-normal temperatures becoming confined to parts of the western US."

WSI, which provides customized weather information to energy traders, issues its seasonal outlook twice-monthly. The next new forecast package (for September-November) issued on August 19.

About WSI
WSI Corporation is the world's leading provider of weather-driven business solutions for professionals in the energy, aviation, and media markets, and multiple federal and state government agencies. WSI is headquartered in Andover, Massachusetts with offices in Birmingham, England, and is a wholly owned subsidiary of Landmark Communications. More information about WSI can be found at http://www.wsi.com.

About ESAI
Since its inception in 1984, Energy Security Analysis Inc. (ESAI) has been dedicated to monitoring, analyzing, and synthesizing information about world-wide energy markets. Tapping the talents of its senior-level staff, ESAI provides clients with unparalleled insight into where the markets have been and where they are headed. ESAI provides ongoing systematic analysis of energy prices in the oil, natural gas, and energy markets. For more information on ESAI services, see http://www.esai.com.

Contacts:
Kristen Sullivan
Weather Services International
(978) 983-6607
ksullivan@wsi.com

Jill Kinsley
Communications Manager
ESAI
(781) 245-2036

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