October 2017 Energy Report This email contains the month over month comparison of energy prices as well as the monthly commodity settlement prices. If you have any questions about your energy and waste portfolio or for an invoice and energy audits, price quotes for natural gas, electricity or waste, please contact RJ Consulting today. Natural Gas For the third month in a row, the settlement price for the promote month stayed below $3/Dth. The October 2017 contract settled at $2.974/Dth, up $0.013/Dth from the September 2017 contract. On the weather front, the first two weeks of October is looking warm. We can all thank the hot finish to September for that. The last two weeks were so hot; September is now expected to finish as the 5th warmest September since 2000; after a very chilly start. On the production front, last week storage gained 58/Bcf to settle at 3,466/Bcf. Stocks were 127/Bcf less than last year at this time and 41/Bcf above the five-year average of 3,425/Bcf. At 3,466/Bcf, total working gas is within the five-year historical range. Production is expected to keep trending higher towards year-end with October production to stall a bit as maintenance will cut some volumes, but the trend remains positive based on the forecasted temperatures. The current projection is a colder than normal winter for the US with cold temperatures reaching down as far as Northern Florida and parts of Texas. If an average cold winter hits the USA, we will see gas prices up hit the $4/Dth range by the beginning of 2018 and touch the $4.50/Dth by the beginning March 2018. My projection for the November 2017 settle is between $3.05/Dth to $3.25/Dth if the cold weather forecast holds. If it does not, November should say below $3/Dth. Electricity In 2016, about 4.08 trillion kilowatt hours (kWh) of electricity were generated at utility-scale facilities in the United States. About 65% of this electricity generation was from fossil fuels (coal-30.4% and natural gas-33.8%), about 20% was from nuclear energy, and about 15% was from renewable energy sources. Each year for the foreseeable future, the