WSI Energycast Outlook Calls for Warm Late-Spring Temperatures in Most of US, Cooler East of...

ANDOVER, Mass. -- WSI Corporation today issued the seasonal outlook for the upcoming three-month period (May-July). WSI expects this period to average warmer than normal across most of the US, with the exception of the major cities along the East Coast. The WSI seasonal outlooks reference a standard

The monthly breakdown follows:

In May:

    Northeast - Cooler than normal, especially ME

    Southeast - Warmer than normal

    N Central - Warmer than normal, except MN/SD

    S Central - Warmer than normal, especially TX/OK

    Northwest - Cooler than normal

    Southwest - Warmer than normal, especially AZ/NM


    Expected Market Impact (provided by ESAI)

    The WSI May forecast indicates cooler-than-normal temperatures in
    the Northeast and Northwest regions. Warmer-than-normal
    temperatures are expected in the central and southern areas of the
    country. Across the southern regions, earlyseason warmer
    temperatures will increase electric loads for air conditioning and
    will increase demand for natural gas from the electricity sector.
    However, cooler weather in the key Northeast demand areas will
    extend the shoulder demand season in this region and provide some
    offset to demand in the southern regions for natural gas. Planned
    power plant maintenance will continue into May but will drop
    rapidly as the month progresses. The cooler temperatures in the
    Northeast will result in lower electric loads, moderating power
    prices during the maintenance period.


In June:

    Northeast - Warmer than normal

    Southeast - Cooler than normal, except MS/TN

    N Central - Warmer than normal

    S Central - Warmer than normal

    Northwest - Warmer than normal

    Southwest - Warmer than normal


    Expected Market Impact (provided by ESAI)

    The WSI June forecast indicates warmer-than-normal temperatures
    across the entire country with the exception of cooler-than-normal
    temperatures in the Southeast. Warmer-than-normal temperatures
    will increase the potential for early-season heat events and could
    result in higher demand for power and natural gas. An early-season
    heat event would provide a bullish input for the natural gas
    market, despite the current high inventories. Cooler weather in
    the Southeast will not provide much offset to higher gas demand in
    the rest of the country. Planned power plant maintenance will be
    mostly complete by early June.


In July:

    Northeast - Cooler than normal

    Southeast - Cooler than normal

    N Central - Warmer than normal, especially ND

    S Central - Warmer than normal

    Northwest - Warmer than normal, especially ID/WY

    Southwest - Warmer than normal, especially AZ/NM


    Expected Market Impact (provided by ESAI)

    The WSI July forecast indicates warmer-than-normal temperatures
    throughout the central and western regions, with cooler
    temperatures across the eastern U.S. Temperatures will be
    especially warm in Idaho, Wyoming and North Dakota, but these
    areas will have a low impact on overall demand. The warmer outlook
    for July is bullish for power prices in the western regions and
    will contribute to higher demand for natural gas. Cooler
    temperatures in the major demand centers along the eastern
    seaboard will lower the probability of heat events and will result
    in moderate electric loads in the Northeast and Southeast regions.
    Overall, the July forecast is bearish for natural gas in light of
    the early season high inventories.

According to WSI seasonal forecaster Dr. Todd Crawford, "Lingering effects from the weakening La Nina event will result in warm weather across most of the southern US during May, with any below-normal temperatures generally confined to the northern tier of states. By June and July, we feel that any below-normal temperatures will be confined to parts of the eastern US."

WSI successfully predicted (1) the warm weather in the eastern US in January 2006, (2) the warm 2005-06 US winter as a whole, and (3) the hot summer nationwide in 2005. Their three-month seasonal forecasts have been skillful for 8 out of the last 12 periods. A skillful seasonal forecast is defined as one that is closer to what is actually observed than a forecast using the 30-year average temperature.

WSI, which provides customized weather information to energy traders, issues its seasonal outlook twice monthly. The next new forecast package (for June-August) will be issued on May 16, with an update issued on May 25.

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 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 www.esai.com.