As everybody knows, last years hurricane season was very dormant compared to the record 28 storms and 15 hurricanes in 2005. However, forecasters are expecting the 2007 hurricane season to be active due to the dissipation of the El Nino weather pattern last February. El Nino is a weather condition that results in warmer than normal Pacific waters. This warming effect causes higher wind shear and limits the formation of hurricanes in the Atlantic region. As of 12/6/06, Dr. William Grey of Colorado State University has predicted 14 named storms, with seven achieving hurricane status and three storms at or above Category 3 intensity. ♦

Energy Solutions for Commercial Buildings

As electric prices continue to increase, it's important to know all the options you have in order to control energy costs. Clearwater Gas System is a member of the Energy Solutions Center (ESC), which is an organization that assists gas utilities in educating and promoting various gas technologies to end users. ESC has just released a new commercial building publication that illustrates these technologies. A copy of this publication will be mailed to you by mid-April so that you may determine if your company may benefit. For more information, please visit the ESC website at www.escenter.org website or contact Brian Langille at (727)562-4911. ♦

Natural Gas Update

Natural gas prices moved higher over the last week, with the April '07 futures contract settling at $7.558 per million Btu (MMBtu). Most of the increase can be attributed to strong crude oil prices. Crude has increased by almost $10/barrel in the last week. The crude oil market continues to rally on both fundamental and political concerns, while the natural gas market may have already peaked and could start a downward trend over the next month.



In other news, the Energy Information Administration (EIA) just updated the storage report on Thursday, which showed a 22 BCF withdrawal as of 3/23. This number was within market expectations, however, that didn't prevent prices from increasing. Currently the total US storage for natural gas is 1,511 BCF, which is 267 BCF higher than the 5-year average. Mild temperatures forecasted over the next few weeks will help reduce the gas demand and build storage in preparation for the summer months. ♦

Gas Mains Extended within City of Clearwater

In September 2006, Clearwater Gas gained City Council approval for the Clearwater Neighborhoods Expansion Program (CNEP). The first three phases of expansion involves the installation of approximately 5 miles of natural gas mains along selected thoroughfares in the Countryside, Northridge and Landmark areas. The program also offers an energy conservation allowance to Clearwater homeowners who convert from electric to gas energy. At current rates natural gas is 45% cheaper than electricity for typical residential appliance uses, and natural gas is unmatched for reliability and comfort.

During the first three phases of the CNEP, natural gas will become available to more than 300 households. Future expansions will target areas of customer interest in other Clearwater neighborhoods that currently do not have natural gas service available. To find out if natural gas is available in your area, please call Clearwater Gas Sales at (727) 669-1958. Clearwater Gas provides natural gas service to some 18,000 customers, while over 2,000 customers rely on propane gas service in areas where natural gas is not available. Clearwater Gas System is the 4th largest municipal gas system in Florida and ranks 35th out of nearly 1,000 public gas systems in the United States. ♦