Energy Market Update November 6, 2014 Premier Energy Group, LLC / 1275 Bound Brook Rd, Suite 6, Middlesex, NJ 08846 / Fax: 732-302-0606 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg. $ $ $ $ $ $ $ $ $ $ $ $ $ Natural Gas Futures Prices ($/dth) NYMEX Settle on November 5, 2014 2012 2013 2014 2015 3.084 $ 3.354 $ 4.407 $ 4.287 2.678 $ 3.226 $ 5.557 $ 4.253 2.446 $ 3.427 $ 4.855 $ 4.167 2.191 $ 3.976 $ 4.584 $ 3.810 2.036 $ 4.152 $ 4.795 $ 3.780 2.429 $ 4.148 $ 4.619 $ 3.801 2.774 $ 3.707 $ 4.400 $ 3.827 3.010 $ 3.459 $ 3.808 $ 3.839 2.634 $ 3.567 $ 3.957 $ 3.835 3.023 $ 3.498 $ 3.984 $ 3.864 3.471 $ 3.496 $ 3.728 $ 3.949 3.696 $ 3.818 $ 4.194 $ 4.104 2.789 $ 3.652 $ 4.407 $ 3.960 PSEG 2015 Transmission Rate Increase $ $ $ $ $ $ $ $ $ $ $ $ $ 2016 4.208 4.174 4.101 3.847 3.842 3.867 3.894 3.904 3.889 3.914 3.984 4.130 3.980 PSEG has filed their 2015 Network Integrated Transmission Service (NITS) Rate. The rate is increasing from $70,697/MW-Year to $96,521/MW-Year. The impact on customers will depend on the assigned transmission capacity and load profile. Most customers can expect an increase of $0.003/kwh - $0.007/kwh. * PSE&G 2013 NITS Rate: $53,953 per MW-year ($147.82/MW-day) * PSE&G 2014 NITS Rate: $70,697 per MW-year ($193.69/MW-day) * PSE&G 2015 NITS Rate: $96,521 per MW-year ($264.44/MW-day) filed but not yet approved Natural Gas - NYMEX 12-month futures strip ($/dth) $6 $4 Note : Prices in red italics are historical - NYMEX contract expired. $2 11/1/14 9/1/14 7/1/14 5/1/14 3/1/14 1/1/14 11/1/13 9/1/13 7/1/13 5/1/13 3/1/13 1/1/13 11/1/12 9/1/12 7/1/12 5/1/12 3/1/12 $0 1/1/12 Natural Gas NYMEX Strip Prices ($/dth) 3-month strip $4.245 6-month strip $4.082 12-month strip $3.967 18-month strip $3.993 24-month strip $3.972 Apr15-Oct15 $3.822 Nov14-Mar15 $4.126 4.062 4.136 Natural Gas Storage (bcf) week ending 10/31/14 This week 91 bcf 3,571 bcf Last week 87 bcf 3,480 bcf This week last year 35 bcf 3,809 bcf 5-Year Average 42 bcf 3,832 bcf Electricity - Prompt Month On-Peak Prices ($/mwh) PJM West NY ISO $250 $200 $150 $100 $50 Note : Negative number denotes withdrawal Fuel Prices - prompt month NYMEX Natural Gas $ 4.194 /dth $ 4.19 Crude Oil $ 78.68 /barrel $ 13.48 #2 Heating Oil $ 2.439 /gallon $ 17.54 NY Harbor Gasoline $ 2.087 /gallon $ 16.05 Crude Oil - Natural Gas Spread: $ 9.28 Financial Indicators Dow Jones Industrial Average NASDAQ S&P 500 Euro - U.S. Dollar ($) U.S. Federal Reserve Rate (%) /mmbtu /mmbtu /mmbtu /mmbtu 17,484.53 4,620.72 2,023.57 1.2402 0.25% Weather (6-10 day forecast) Expect above-average temperatures in the Western U.S. Below-normal temperatures will be seen in the Central and Eastern areas of the U.S. A small band of normal temperatures will occur in a few areas of the Mountain region. HEATING DEGREE DAYS - Newark, NJ H.D.D.s 2014-2015 (Oct-May) Season to Date 255 2013/14 (Oct-May of prior year) 280 NORMAL (30-year average) - Season to Date 340 11/1/14 9/1/14 7/1/14 5/1/14 3/1/14 1/1/14 11/1/13 9/1/13 7/1/13 5/1/13 3/1/13 1/1/13 11/1/12 9/1/12 7/1/12 5/1/12 3/1/12 1/1/12 $0 Gas Daily Midpoint - Cash Prices ($/dth) - flow date 11/6/14 Henry Hub $ 3.805 Transco Zone 6 - NY $ 3.315 Transco Zone 6 - non NY $ 3.575 Tetco Zone M3 $ 3.375 Market Outlook The Natural Gas 12- and 24-month NYMEX strip prices jumped from last week, settling yesterday at $3.967/dth (up 6.75%) and $3.972/dth (up 4.36%). Natural gas prices have risen over the past week in large part due to changes in the long- term forecast which have many concerned about another severe winter. The higher gas prices are translating to increased electric rates as well. The EIA reported a Natural Gas storage injection of 91 bcf which was higher than expectations of 83-87 bcf. The storage inventory of 3,571 bcf is now 238 bcf behind last year and 261 bcf behind the 5-year average. Richard J. Albanese Laurie A. Albee Leigh-Ann Barrett Joanne Comune Nick Brown Emmett Capanna Scott K. Fawcett Richard A. Haynal Thomas Pennimpede Patricia Prugh Joseph L. Santo Sara Shapiro Charles S. Wilk 732-302-0601ext 601 ralbanese@premierenergygroup.com 732-302-0601ext 614 lalbee@premierenergygroup.com 732-302-0601ext 607 lbarrett@premierenergygroup.com 732-302-0601ext 612 jcomune@premierenergygroup.com 732-302-0601ext 611 nbrown@premierenergygroup.com 732-302-0601ext 610 ecapanna@premierenergygroup.com 732-302-0601ext 608 sfawcett@premierenergygroup.com 732-302-0601ext 602 rhaynal@premierenergygroup.com 732-302-0601ext 605 tpennimpede@premierenergygroup.com 732-302-0601ext 609 pprugh@premierenergygroup.com 732-302-0601ext 603 jsanto@premierenergygroup.com 732-302-0601ext 613 sshapiro@premierenergygroup.com 732-302-0601ext 604 cwilk@premierenergygroup.com This information is provided for informational purposes only. Premier Energy Group, LLC makes no representation or warranty regarding the accuracy or completeness of any data provided herein. Any recommendations or opinions provided by Premier Energy Group, LLC are not to be considered guarantees, at this time or in the future. This document may not be reproduced, retransmitted or redistributed without the prior written consent of Premier Energy Group, LLC.