Capitol Area Energy, Inc.

April 4, 2008

NATURAL GAS & ELECTRICITY
NATURAL GAS
Natural gas futures for May on the NYMEX ended down $ 0.095 per MMBtu on Friday to settle at $ 9.322 erasing an earlier gain on speculation that storage supplies will begin to rise as warmer weather cuts demand. Storage inventories began the winter at all-time highs of 3.545 Tcf and will likely finish slightly above 1.24 Tcf. Abovenormal temperatures for this time of year are probable in the eastern half of the nation next week, the US Climate Prediction Center said. The trend is in place for natural gas prices to move lower. Energy demand may also fall after employers cut the most workers in 5 years last month. US payrolls decreased by 80,000, more than forecast and the 3rd consecutive monthly decline, suggesting the economic contraction is deepening and the Federal Reserve will continue to lower interest rates. Industrial, commercial and power-generation demand accounts for about 78% of natural gas use. Some speculators, who had anticipated storage levels dipping to or below the 5-year average, also sold positions when that didn’t happen last week. Traders may start buying again this week before the release of the Colorado State University 2008 hurricane forecast. The forecast is scheduled to be released on April 9th. Last week, the EIA reported a storage withdrawal of 29 Bcf, a little less than expected, compared to a withdrawal of 35 Bcf a year ago. The report showed that total storage levels of 1.248 Tcf are still 6 Bcf above the 5-year average. For this week, look for a withdrawal of about 10 to 20 Bcf. For this week, major resistance is seen at $ 10.090, with minor at $ 9.505, while major support is seen at $ 8.690 and minor at $ 9.295.

David Babin 5105 Pryor Lane Austin, Texas 78734 Phone 512-266-4710 Fax 512-266-4712 www.capitolareaenergy.com

NATURAL GAS PRICES
NYMEX May 08 03 Month Strip 06 Month Strip 12 Month Strip 18 Month Strip Last 9.32 9.42 9.51 9.77 9.44 Change -0.09 -0.09 -0.09 -0.09 -0.07

April 2008 Gas Prices
NYMEX Historical Natural Gas Prices 2005 15.00 10.00 5.00 0.00 2006 2007 2008
NYMEX Houston Ship Channel Waha Hub Point Price 9.578 9.25 8.65

EIA GAS STORAGE
Region East West Bcf 575 175 498 1,248 Change -32 -1 4 -29

J

F 6.29

M

A

M 6.75 7.20 7.51

J 6.12 5.93 7.59

J

A

S

O

N

D

Prod Total

2005 6.21

6.30 7.32 7.11 7.23 7.65 7.56

6.98 7.65 10.85 13.91 13.83 11.18 5.89 7.04 6.93 6.11 6.82 5.43 4.20 6.42 7.15 8.32 7.27 7.17

2006 11.43 8.40 2007 5.84 6.92

◄ LINKS ►
If you are interested in receiving electricity bids, simply complete our Letter of Authorization and fax it back to 512-266-4712 Click Here! LETTER OF AUTHORIZATION If you are currently under contract an would like notification of natural gas or electricity rates, please sign up to receive future prices. Click Here! NATURAL GAS & ELECTRICITY SIGN UP

2008 7.17 7.996 9.83

HOW LONG, HOW DEEP By Avery Shenfeld
Ben Bernanke studiously avoided saying it, but the rest of the world is shouting it from the rooftops: America’s economy is in recession. The last doubters will throw in the towel after today’s non-farm payrolls report. Forwardlooking investors have therefore turned to the new issue at hand, namely, just how long, and just how deep the US downturn will be when the final chapters are written. And that’s of critical concern to Canada, since while the economy here seems to still be inching ahead, with job gains rather than losses, a protracted and deep American recession would inevitably send Canada into its own tailspin. The optimist in us would like to be able to say that the mild tone to American payrolls declines thus far tells us something about the prognosis for what lies ahead. Typically, recessions entail months where 200,000-300,000 jobs disappear, and we’ve yet to see that scale of damage. Unfortunately, the early months of recession are not helpful in predicting its severity. If anything, the ugliest real GDP downturns—1974 and 1981-82 being cases in point—seem to start with better news on employment than the short and shallow recessions of 1991 and 2001. So is the “good” news we’ve seen on layoffs a predictor of very bad news ahead? Not really, because the hallmark of long and deep recessions was the response, or rather the lack of, by the central bankers of the day. Worried about inflation, and energy prices in particular, the Fed actually tightened during the first half of the 1974 recession, taking the funds rate up by more than 300 basis points. Similarly, the Fed held on to a high, double-digit fed funds rate, and a high real funds rate, until the 1981-82 recession was nearly over. The Great Depression, which some are pointing to today, was so “great” because the central bank allowed a collapse in the financial sector and, in effect, a massive tightening in monetary policy. In contrast, Greenspan was well into his easing cycle when the recession got underway in 1991 and 2001, and took real rates to zero by the middle of those slumps. Bernanke has taken his cue from those two, more shallow downturns. He’s fighting a credit crunch that has slowed the transmission of lower overnight rates into other private sector yields. But with a 1.25% funds rate likely by summer’s end, and more steps by Washington to wade into the mortgage mess, the overall thrust of monetary policy will be just what’s needed for this recession to be mild, and shallow.

MCPE AVERAGE
ERCOT Houston North South West Ave 77.19 68.53 71.22 58.69 Change -26.08 19.43 -3.90 11.48

To remove your name for our mailing list, please click here. Questions or comments? E-mail us at newsletter@capitolareaenergy.com

Capitol Area Energy, Inc. April 11, 2008

NATURAL GAS & ELECTRICITY
NATURAL GAS
Natural gas futures for May on the NYMEX ended up $ 0.197 lower Friday to settle at $ 9.901 per MMBtu, amid speculation demand will wane as the nations’ economy slows and the weather warms. The Midwest and Northeast will have above-normal temperatures this week. Chicago may reach 66 degrees by April 16th. General Electric reported its first decline in quarterly profit since 2003 and its shares fell. Industrial stocks fell the most in 6 years after GE cut its profit forecasting, signaling the US economy may be worsening. The economy won’t expand during the first 6 months of this year, according to a recent survey. A majority of those polled also projected the US economy is, or will be soon, in a recession. Confidence among US consumers fell to a 26-year low after employers fired workers and gasoline prices surged. Industrial, commercial and power-generation needs account for about 78% of natural gas use, according to the EIA. The International Energy Agency, an adviser to 27 nations, cut its 2008 global oil demand forecast for a 3rd straight month as economic growth slows amid record crude prices and the credit-market slump. The annual forecast was reduced by 310,000 bpd to 87.23 million, from last month’s estimate. Energy demand will fall in the US by 410,000 bpd, to 20.38 million bpd this year, the lowest since 2003. Inventories are now at their lowest since May 2004. Last week, the EIA reported a storage withdrawal of 14 Bcf, about what was expected, compared to an injection of 33 Bcf a year ago. The report showed that total storage levels of 1.234 Tcf are 23 Bcf below the 5-year average. For this week, look for a withdrawal of about 20 to 30 Bcf. For this week, major resistance is seen at $ 10.365, with minor at $ 9.960, while major support is seen at $ 8.775 and minor at $ 9.825.

David Babin 5105 Pryor Lane Austin, Texas 78734 Phone 512-266-4710 Fax 512-266-4712 www.capitolareaenergy.com

NATURAL GAS PRICES
NYMEX May 08 03 Month Strip 06 Month Strip 12 Month Strip 18 Month Strip Last 9.90 9.99 10.07 10.28 9.86 Change -0.19 -0.20 -0.19 -0.19 -0.17

April 2008 Gas Prices
Point NYMEX Price 9.578 9.25 8.65

NYMEX Historical Natural Gas Prices 2005 15.00 10.00 5.00 0.00 2006 2007 2008

Houston Ship Channel Waha Hub

EIA GAS STORAGE
Region East West Prod Total Bcf 563 173 498 1,234 Change -12 -2 0 -14

J

F 6.29

M

A

M 6.75 7.20 7.51

J 6.12 5.93 7.59

J

A

S

O

N

D

2005 6.21

6.30 7.32 7.11 7.23 7.65 7.56

6.98 7.65 10.85 13.91 13.83 11.18 5.89 7.04 6.93 6.11 6.82 5.43 4.20 6.42 7.15 8.32 7.27 7.17

◄ LINKS ►
If you are interested in receiving electricity bids, simply complete our Letter of Authorization and fax it back to 512-266-4712 Click Here! LETTER OF AUTHORIZATION

2006 11.43 8.40 2007 5.84 6.92

2008 7.17 7.996 9.83 9.578

Industry Analysis
The United States is the world's largest energy producer, consumer, and net importer. It also ranks eleventh worldwide in reserves of oil, sixth in natural gas, and first in coal. Since the mid 1950s, domestic usage of energy has exceeded the domestic production levels of all energy used by industry, transportation, commercial and residential users. With the exception of a brief rollback in the late 1970s and early 1980s domestic consumption continues to outpace consumption despite additional technology that has created new energy resources and improved the production efficiencies of traditional energy supplies. Most energy produced in the United States comes from fossil fuels -- coal, natural gas, and crude oil. Coal, the leading source at the middle of the 20th century, was surpassed by crude oil and natural gas for many years, but again became the leading source of energy in the mid-1980s, used primarily for electric generation. With increased economic output, the US requires more energy in 2008 than 2006 and 2007. Oil & Gas Journal (OGJ) forecasts that total energy demand will be 202.34 quadrillion btu (quads) in 2008. Energy efficiency, the amount of energy consumed per dollar of GDP, will improve slightly in 2008. The energy efficiency ratio has improved nearly each year since 1970.

If you are currently under contract an would like notification of natural gas or electricity rates, please sign up to receive future prices. Click Here! NATURAL GAS & ELECTRICITY SIGN UP

MCPE AVERAGE
ERCOT Houston North South Ave 74.59 71.99 73.46 69.90 Change -13.98 9.56 -4.70 62.24

To remove your name for our mailing list, please click here. Questions or comments? E-mail us at newsletter@capitolareaenergy.com

West

Capitol Area Energy, Inc. April 18, 2008

NATURAL GAS & ELECTRICITY
NATURAL GAS
Natural gas futures for May delivery slipped $ 0.126 lower yesterday to settle at $ 10.607 per MMBtu, as early predictions of a larger build in storage inventories and forecasts of mild spring weather in the Northeast and Midwest reduced supply concerns. Moderate temperatures across much of the US over the next 2 weeks are expected to cut demand. The weather forecasts have helped calm fears of supply constraints as a production shut-in continues at the Independence Hub. A private forecaster predicts normal temperatures in the northern and eastern states from April 26th to April 30th. From May 1st to May 5th, above-normal temperatures are expected in the Ohio Valley and Southeast. Natural gas has not really had a bona fide post-winter correction and despite how high crude oil is, natural gas is entering a shoulder period of softening demand. Last week, the EIA reported a storage injection of 27 Bcf, somewhat higher than expected, compared to a withdrawal of 26 Bcf a year ago. The report showed that total levels of 1.261 Tcf are now 3 Bcf below the 5-year average. For this week, look for an injection of about 25 to 35 Bcf. For this week, major resistance is seen at $ 10.880, with minor at $ 10.625, while major support is seen at $ 8.925 and minor at $ 10.350.
NYMEX Historical Natural Gas Prices 2005 15.00 10.00 5.00 0.00 2006 2007 2008

David Babin 5105 Pryor Lane Austin, Texas 78734 Phone 512-266-4710 Fax 512-266-4712 www.capitolareaenergy.com

NATURAL GAS PRICES
NYMEX May 08 03 Month Strip 06 Month Strip 12 Month Strip 18 Month Strip Last 10.59 10.70 10.81 11.03 10.57 Change +0.20 +0.21 +0.21 +0.21 +0.21

April 2008 Gas Prices
Point NYMEX Houston Ship Channel Waha Hub Price 9.578 9.25 8.65

EIA GAS STORAGE
Region East West Prod Bcf 582 176 503 1,261 Change 19 3 5 27

J

F 6.29

M

A

M 6.75 7.20 7.51

J 6.12 5.93 7.59

J

A

S

O

N

D

Total

2005 6.21

6.30 7.32 7.11 7.23 7.65 7.56

6.98 7.65 10.85 13.91 13.83 11.18 5.89 7.04 6.93 6.11 6.82 5.43 4.20 6.42 7.15 8.32 7.27 7.17

2006 11.43 8.40 2007 5.84 6.92

◄ LINKS ►
If you are interested in receiving electricity bids, simply complete our Letter of Authorization and fax it back to 512-266-4712 Click Here! LETTER OF AUTHORIZATION If you are currently under contract an would like notification of natural gas or electricity rates, please sign up to receive future prices. Click Here! NATURAL GAS & ELECTRICITY SIGN UP

2008 7.17 7.996 9.83 9.578

By Grant Smith April 23 (Bloomberg) -- Crude oil was little changed in New York amid negotiations to avert a refinery strike in the U.K. and as the U.S. dollar stabilized after touching a record low. Oil has retreated from the record $119.90 a barrel reached yesterday when the dollar touched an all-time low of $1.6018 to the euro. Unions planning to strike at a 200,000 barrel-a-day refinery in Scotland next week are holding talks with the plant's owners Ineos Group Holdings Plc today after failing to reach agreement yesterday. ``The weakness of the dollar is a great driver here,'' said Francisco Blanch, head of commodities research at Merrill Lynch in London. ``Oil has become a little bit of a monetary phenomenon, where low rates boost demand for oil in emerging markets.'' Crude oil for June delivery was at $117.77 a barrel, down 30 cents, at 11:20 a.m. London time in after-hours electronic trading on the New York Mercantile Exchange. The May contract, which expired yesterday, rose $1.89, or 1.6 percent, to settle at $119.37 a barrel on Nymex, a record close. Futures earlier reached the highest intraday price since trading began in 1983. Brent crude for June settlement was at $115.56 a barrel, down 39 cents, on London's ICE Futures Europe exchange at 11:08 a.m. London time. The contract gained $1.52, or 1.3 percent, to close at a record $115.95 a barrel yesterday after touching $116.75, an all-time intraday high. Forties Pipeline Workers are planning to strike from April 27-28 at Ineos' Scottish plant, which takes crude from BP Plc's Forties Pipeline System that transfers oil from more than 50 North Sea fields. Oil has also gained because of a supply disruption in Nigeria. Royal Dutch Shell Plc closed 169,000 barrels a day of supply after attacks on a pipeline last week. The U.S. Energy Department is scheduled to release its weekly report on inventories today at 10:30 a.m. in Washington. Gasoline stockpiles probably declined 2 million barrels in the week ended April 18 from 215.8 million barrels the week before, according a Bloomberg survey. Oil supplies advanced 1.5 million barrels from 313.7 million barrels, according to the median of responses from 15 analysts.

Crude Oil Trades Little Changed Amid U.K. Strike Talks, Dollar

MCPE AVERAGE
ERCOT Houston North South West Ave 87.07 87.07 87.07 87.07 Change 17.74 18.66 17.90 44.83

To remove your name for our mailing list, please click here. Questions or comments? E-mail us at newsletter@capitolareaenergy.com

Capitol Area Energy, Inc. April 25, 2008

NATURAL GAS & ELECTRICITY
NATURAL GAS
Natural gas futures for May delivery ended Friday on the NYMEX $ 0.173 higher to settle at $ 10.963 per MMBtu, the highest in more than two years as oil advanced on supply disruptions. Crude oil prices rose as BP prepared to shutdown a North Sea pipeline and violence and strikes cut output in Nigeria. Natural gas prices also gained amid speculation supplies may fall short of the quantities needed to rebuild storage for next winter’s heating loads. There has been a notion prevalent for the last month that the storage gap has to close for prices to fall. The May contract was up 4% last week. Prices are 47% higher so far this year. The May contract closes today. Based on prices in the cash market, fuel oil is valued at $ 14.66 MMBtu compared and heating oil at $ 23.88 per MMBtu equivalent, than double the price of natural gas. Prices have held above the 9-day moving average of about $ 10.605 and unless it breaks below that, they could continue higher. US LNG imports dropped to 900 MMcf per day in April from a daily 3.2 Bcf per day a year ago. The New York June futures contract was $ 1.63 per MMBtu below prices offered in the UK for the same month. Last week, the EIA reported a storage injection of 24 Bcf, somewhat less than expected, compared to an injection of 0 Bcf a year ago. The report showed that total storage levels of 1.285 Tcf are now 25 Bcf below the 50year average. For this week, look for an injection of about 40 to 50 Bcf. For this week, major resistance is seen at $ 11.385, with minor at $ 10.98, while major support is seen at $ 9.040 and minor at $ 10.89.

David Babin 5105 Pryor Lane Austin, Texas 78734 Phone 512-266-4710 Fax 512-266-4712 www.capitolareaenergy.com

NATURAL GAS PRICES
NYMEX May 08 03 Month Strip 06 Month Strip 12 Month Strip 18 Month Strip Last 10.96 11.10 11.22 11.43 10.94 Change +0.17 +0.16 +0.16 +0.14 +0.10

April 2008 Gas Prices
Point NYMEX Price 9.578 9.25 8.65

NYMEX Historical Natural Gas Prices 2005 15.00 10.00 5.00 0.00 2006 2007 2008

Houston Ship Channel Waha Hub

EIA GAS STORAGE
Region East West Prod Total Bcf 598 181 506 1,285 Change 16 5 3 24

J

F 6.29

M

A

M 6.75 7.20 7.51

J 6.12 5.93 7.59

J

A

S

O

N

D

2005 6.21

6.30 7.32 7.11 7.23 7.65 7.56

6.98 7.65 10.85 13.91 13.83 11.18 5.89 7.04 6.93 6.11 6.82 5.43 4.20 6.42 7.15 8.32 7.27 7.17

◄ LINKS ►
If you are interested in receiving electricity bids, simply complete our Letter of Authorization and fax it back to 512-266-4712 Click Here! LETTER OF AUTHORIZATION

2006 11.43 8.40 2007 5.84 6.92

2008 7.17 7.996 9.83 9.578

CFTC Report and Weather
CFTC report issued on Friday showed that funds have decreased both longs (7,482) and shorts (11,518) on a futures only basis although long seen increasing by 5,999 on a futures/options basis. With respect to natural gas, the funds increased longs by 6.737 and decreased shorts by 1,699 on a futures only basis. However, on a futures/options basis longs increased by 11,138 and shorts increased by a whopping 33,637. AccuWeather said that waning La Nina conditions and a continued warm water cycle in the Atlantic Basin will cause a number of storms to be slightly above average and will increase the chance that storms will hit the U.S. during the upcoming hurricane season. FERC said that the construction of the proposed AES Sparrows Point LNG receiving terminal in Baltimore Harbor would be environmentally acceptable. NOAA’s 6-10 day forecast showing above normal temps along the entire eastern seaboard with below normal temps in many areas in the central U.S. and the interior sections of the West. The 8-14 day forecast shows normal temps in the NE with above normal temps along the eastern seaboard from southern Virginia through Florida and along the eastern Gulf Coast state. It also shows below normal temps continuing in the countries midsection and interior West.

If you are currently under contract an would like notification of natural gas or electricity rates, please sign up to receive future prices. Click Here! NATURAL GAS & ELECTRICITY SIGN UP

MCPE AVERAGE
ERCOT Houston North South Ave 115.98 226.44 78.07 173.13 Change 24.73 139.36 -14.10 111.45

To remove your name for our mailing list, please click here. Questions or comments? E-mail us at newsletter@capitolareaenergy.com

West

Capitol Area Energy, Inc. May 2, 2008

NATURAL GAS & ELECTRICITY
NATURAL GAS
Natural gas futures for June on the NYMEX ended $ 0.216 higher Friday to settle at $ 10.777 per MMBtu, following crude oil, after a government report showed the US lost fewer jobs than forecasted in April which made the stock market rally. The American workplace shrunk by 20,000 jobs and the jobless rate fell to 5%, the Labor Department said. Economists had projected a loss of 75,000 jobs. Eight of 10 industry groups in the Standard & Poor’s 500 Index climbed. Natural gas has gained 44% so far this year, climbing to a 28-month intra-day high of $ 11.36 on April 28th. Increasing output of electricity from natural gas-fired power plants will add about 1 Bcf per day to demand over the next several years. Last week, the EIA reported a storage injection of 86 Bcf, considerably more than expected, compared to an injection of 67 Bcf a year ago. The report showed that total storage levels of 1.371 Tcf are now 3 Bcf below the 5-year average. For this week, look for an injection of about 70 to 80 Bcf. For this week, major resistance is seen at $ 11.39, with minor at $ 10.877, while major support is seen at $ 9.380 and minor at $ 10.651.
NYMEX Historical Natural Gas Prices 2005 15.00 10.00 5.00 0.00 2006 2007 2008

David Babin 5105 Pryor Lane Austin, Texas 78734 Phone 512-266-4710 Fax 512-266-4712 www.capitolareaenergy.com

NATURAL GAS PRICES
NYMEX June 08 03 Month Strip 06 Month Strip 12 Month Strip 18 Month Strip Last 10.77 10.90 11.03 11.06 10.66 Change +0.22 +0.22 +0.22 +0.21 +0.19

May 2008 Gas Prices
Point NYMEX Houston Ship Channel Waha Hub Price 11.28 10.83 10.08

EIA GAS STORAGE
Region Bcf 652 188 531 1,371 Change 54 7 25 86 East West Prod Total

J

F 6.29

M

A

M 6.75 7.20 7.51

J 6.12 5.93 7.59

J

A

S

O

N

D

2005 6.21

6.30 7.32 7.11 7.23 7.65 7.56

6.98 7.65 10.85 13.91 13.83 11.18 5.89 7.04 6.93 6.11 6.82 5.43 4.20 6.42 7.15 8.32 7.27 7.17

2006 11.43 8.40 2007 5.84 6.92

2008 7.17 7.996 9.83 9.578 11.28

◄ LINKS ►
If you are interested in receiving electricity bids, simply complete our Letter of Authorization and fax it back to 512-266-4712 Click Here! LETTER OF AUTHORIZATION If you are currently under contract an would like notification of natural gas or electricity rates, please sign up to receive future prices. Click Here! NATURAL GAS & ELECTRICITY SIGN UP

Oil rises near $117 on supply fears
By GEORGE JAHN Associated Press Writer
VIENNA, Austria — Oil prices rose Monday, supported by weekend news of an attack on a Nigerian oil installation, but with gains limited by a stronger U.S. dollar. Royal Dutch Shell PLC spokesman Precious Okolobo said Saturday that attackers hit a flow station belonging to Shell's joint venture in southern Nigeria and that some oil production had been shut down. He gave no further details. Flow stations are intersections for pipelines carrying oil from wells to export terminals. "The geopolitical news (out of Nigeria) is supportive of oil pricing and causes investors to come back into oil," said Victor Shum, an analyst with Purvin & Gertz in Singapore. However, "the strengthening dollar has capped further gains in oil," he said. Light, sweet crude for June delivery rose 58 cents to $116.90 a barrel by noon in European electronic trading on the New York Mercantile Exchange. The contract rose $3.80 to settle at $116.32 a barrel on Friday. Crude futures soared Friday after Turkish air strikes on Kurdish rebel bases in Iraq injected supply concerns into the market. Also supporting oil prices were concerns about Iran after Supreme Leader Ayatollah Ali Khamenei said Sunday that his country will not bend to international pressure and give up its nuclear program. Iran is the second largest producer in the Organization of Petroleum Exporting Countries. When conflict breaks out or political tensions rise in the Middle East, investors often buy oil on the belief that supplies could be disrupted. "The market is supported by strong commodity index fund buying that happened on Friday, driven primarily by a belief that there would be supply issues in the long term," Shum said. At the same time, an employment report from the U.S. Labor Department also gave investors reason to be more optimistic about the U.S. economy — and raised the floor on prices. The U.S. is the world's largest consumer of oil and any drop in demand there can have a global impact on prices. Vienna's JBC Energy described the relatively positive employment figures as "the main bullish factor in the market." "Positive news on the U.S. economy eased concerns about a recession and made further (U.S. interest) rate cuts ... unlikely," said Monday's JBC newsletter. "Theoretically, this would decrease the amount of money invested in oil as a hedge for the falling dollar." Oil prices dropped to nearly $110 a barrel on Thursday, helped by the rising U.S. dollar. A rising dollar undercuts the appeal of commodities such as oil as a hedge against inflation, and makes oil more expensive to investors overseas. In other Nymex trading, heating oil futures added more than a penny to $3.2305 a gallon while gasoline prices were flat at $2.9664 gallon. Natural gas futures rose more than 6 cents to $10.84 per 1,000 cubic feet.

MCPE AVERAGE
ERCOT Houston North South West Ave 100.44 58.82 89.47 52.71 Change 32.14 -5.88 22.52 6.23

To remove your name for our mailing list, please click here. Questions or comments? E-mail us at newsletter@capitolareaenergy.com

Capitol Area Energy, Inc. May 9, 2008

NATURAL GAS & ELECTRICITY
NATURAL GAS
Natural gas futures for June delivery on the NYMEX dipped $ 0.236 lower yesterday to settle at $ 11.301 per MMBtu, amid speculation inventories will increase as a major pipeline in the Gulf of Mexico resumes output following repairs and after crude oil prices fell. The Independence Hub in the Gulf was shut April 9th by a leak on the Independence Trail export pipeline and was moving about 900 MMcf per day. Repairs are scheduled to be finished in the first half of the month. Oil declined on signs that rising prices may cut demand in emerging markets Supplies of liquefied natural gas to the US may fall by 35% in 2008, investment bank Tudor, Pickering, Holt said, reversing a forecast that shipments will rise. Imports of LNG may decline by 0.7 Bcf per day to 1.3 Bcf per day this year because of diversions of supplies to Europe and Asia, Tudor said. Supplies of LNG to the US increased 33% last year. The US imported about 1.9 Bcf per day last year, or about 9% of global LNG consumption. The hurricane starts June 1st. The Gulf of Mexico will have a normal distribution of tropical activity, with energy interests experiencing at least 7 to 10 days with disruptions or threats of disruptions, AccuWeather forecaster Joe Bastardi said in his outlook for the season. Specifically, the forecast is for 2 or 3 storms that affect the energy infrastructure in and around the Gulf of Mexico. He anticipates 12 named storms in 2008, with 40% becoming either a tropical storm or a hurricane. Last week, the EIA reported a storage injection of 65 Bcf, about what was expected, compared to an injection of 94 Bcf a year ago. The report showed that total storage levels of 1.436 Tcf are now 11 Bcf below the 5-year average. For this week, look for an injection of about 70 to 80 Bcf. For this week, major resistance is seen at $ 12.380, with minor at $ 11.480, while major support is seen at $ 9.580 and minor at $ 11.250.

David Babin 5105 Pryor Lane Austin, Texas 78734 Phone 512-266-4710 Fax 512-266-4712 www.capitolareaenergy.com

NATURAL GAS PRICES
NYMEX June 08 03 Month Strip 06 Month Strip 12 Month Strip 18 Month Strip Last 11.54 11.64 11.75 11.76 11.34 Change +0.27 +0.28 +0.28 +0.26 +0.23

May 2008 Gas Prices
Point Price 11.28 10.83 10.08 NYMEX Houston Ship Channel

NYMEX Historical Natural Gas Prices 2005 15.00 2006 2007 2008

Waha Hub

EIA GAS STORAGE
10.00 5.00 0.00
Region East West Prod Bcf 690 197 549 1,436 Change 38 9 18 65

J

F 6.29

M

A

M 6.75 7.20 7.51

J 6.12 5.93 7.59

J

A

S

O

N

D

Total

2005 6.21

6.30 7.32 7.11 7.23 7.65 7.56

6.98 7.65 10.85 13.91 13.83 11.18 5.89 7.04 6.93 6.11 6.82 5.43 4.20 6.42 7.15 8.32 7.27 7.17

2006 11.43 8.40 2007 5.84 6.92

◄ LINKS ►
If you are interested in receiving electricity bids, simply complete our Letter of Authorization and fax it back to 512-266-4712 Click Here! LETTER OF AUTHORIZATION If you are currently under contract an would like notification of natural gas or electricity rates, please sign up to receive future prices. Click Here! NATURAL GAS & ELECTRICITY SIGN UP

2008 7.17 7.996 9.83 9.578 11.28

Short-Term Crude Outlook from the EIA
West Texas Intermediate (WTI) crude oil spot prices increased from $101 to $120 per barrel over the first 3 weeks of April as supply disruptions in Nigeria and the North Sea and continuing strong demand growth in the emerging market countries pressured oil markets. In 2007, domestic crude oil output averaged 5.1 million bbl/d, unchanged from 2006. Total output in 2008 is projected to grow by only 10,000 bbl/d. In 2009, domestic crude oil production is projected to average 5.3 million bbl/d, up 210,000 bbl/d from 2008. Federal Gulf of Mexico output is expected to rise by 260,000 bbl/d but declines are projected for Alaska (30,000 bbl/d) and the lower-48 States (20,000 bbl/d). Total petroleum consumption of liquid fuels and other petroleum products averaged 20.7 million bbl/d in 2007, essentially unchanged from 2006. Based on projections of weak economic growth and record high crude oil and product prices, consumption is projected to decline by 190,000 bbl/d in 2008, a sharper drop than the 90,000 bbl/d decline projected in the previous Outlook. After accounting for projected increases in ethanol use, U.S. petroleum consumption is projected to fall by 330,000 bbl/d. In 2009, total petroleum and other liquid fuel consumption is projected to rise by 210,000 bbl/d. WTI crude oil prices, which averaged $72.32 per barrel in 2007, are projected to average $110 per barrel in 2008, up about $9 per barrel from the projection in last month’s Outlook, and $103 per barrel in 2009, up about $11 per barrel from the previous Outlook. EIA projects regulargrade motor gasoline retail prices, which averaged $2.81 per gallon in 2007, to average $3.52 per gallon this year, up 16 cents from last month’s Outlook. The motor gasoline price is expected to average $3.66 over this summer (April through September). These projections reflect our assumption of a sizable narrowing of refiner gasoline margins from last year, attributable to weakness in gasoline demand and growth in ethanol supply. In 2009, regular-grade gasoline retail prices are projected to average $3.44 per gallon, 20 cents higher than in the previous Outlook. Diesel fuel retail prices in 2008 are projected to average $3.94 per gallon, up from $2.88 per gallon last year. This reflects global strength in diesel demand that is contributing to a widening of the margin between diesel prices and crude oil costs since last year. Retail diesel prices are projected to average $3.67 per gallon in 2009.

MCPE AVERAGE
ERCOT Houston North South West Ave 188.54 67.03 156.02 76.71 Change 40.60 8.02 -43.14 12.71

To remove your name for our mailing list, please click here. Questions or comments? E-mail us at newsletter@capitolareaenergy.com

Capitol Area Energy, Inc. May 16, 2008

NATURAL GAS & ELECTRICITY
NATURAL GAS
Natural gas futures for June on NYMEX dropped $ 0.14 to $ 10.954 yesterday marking the third day in a row with a decrease in prices, as mild weather and rising storage levels placed downward pressure on prices. Forecasts of moderate temperatures in the Northeast and Midwest prompted profit-taking despite a late-day rally in the crude oil market. The natural gas markets failure to remain above $ 11.50 led to technical selling. Mild spring weather in the Northeast and Midwest over the next two weeks is expected to dampen demand. The National Weather Service is forecasting above-normal temperatures in parts of the Mid-Atlantic and Midwest from May 24th to May 28th, though the warm weather is not expected to spark significant demand for cooling. From May 26th to June 1st, below-normal temperatures were expected in New England and the Upper Midwest, while normal temperatures are predicted for most of the Great Lakes and Mid-Atlantic. The mild weather was expected to bring substantial injections into storage. Last week, the EIA reported a storage injection of 93 Bcf, somewhat more than was expected, compared to an injection of 95 Bcf a year ago. The report showed that total storage levels of 1.529 Tcf are now 3 Bcf above the 5-year average. For this week, look for an injection of about 85 to 95 Bcf. For this week, major resistance is seen at $ 11.625, with minor at $ 11.085, while major support is seen at $ 9.72 and minor at $ 10.850.
NYMEX Historical Natural Gas Prices 2005 15.00 2006 2007 2008

David Babin 5105 Pryor Lane Austin, Texas 78734 Phone 512-266-4710 Fax 512-266-4712 www.capitolareaenergy.com

NATURAL GAS PRICES
NYMEX June 08 03 Month Strip 06 Month Strip 12 Month Strip 18 Month Strip Last 11.09 11.24 11.38 11.46 11.12 Change -0.31 -0.30 -0.29 -0.25 -0.20

May 2008 Gas Prices
Point NYMEX Houston Ship Channel Waha Hub Price 11.28 10.83 10.08

EIA GAS STORAGE
10.00 5.00 0.00
Region East West Prod Bcf 743 210 576 1,529 Change 53 13 27 93

J

F 6.29

M

A

M 6.75 7.20 7.51

J 6.12 5.93 7.59

J

A

S

O

N

D

Total

2005 6.21

6.30 7.32 7.11 7.23 7.65 7.56

6.98 7.65 10.85 13.91 13.83 11.18 5.89 7.04 6.93 6.11 6.82 5.43 4.20 6.42 7.15 8.32 7.27 7.17

2006 11.43 8.40 2007 5.84 6.92

◄ LINKS ►
If you are interested in receiving electricity bids, simply complete our Letter of Authorization and fax it back to 512-266-4712 Click Here! LETTER OF AUTHORIZATION If you are currently under contract an would like notification of natural gas or electricity rates, please sign up to receive future prices. Click Here! NATURAL GAS & ELECTRICITY SIGN UP

2008 7.17 7.996 9.83 9.578 11.28

Crude Oil Flat Before EIA Report
Oil traded little changed near $127 a barrel before a U.S. Energy Administration report expected to show fuel stockpiles increased last week. U.S. crude-oil and distillate fuel stockpiles probably gained last week as refiners increased production and took delivery of crude imports. Prices closed at a record in New York yesterday. Crude oil for June delivery was at $127.17 a barrel, up 12 cents, in electronic trading on the New York Mercantile Exchange at 11:09 a.m. in London time. Yesterday, the contract rose 76 cents, or 0.6 percent, to $127.05 a barrel, a record close. Prices are 92 percent higher than a year ago. Crude touched $127.82 on May 16th, the highest since trading began in 1983. The June contract expires today and the more active July future was at $126.68 a barrel, down 4 cents, at 10:52 a.m. London time. Oil supplies climbed 750,000 barrels in the week ended May 16 from 325.8 million barrels, according to the median of responses by eight analysts before an Energy Department report tomorrow. Refineries probably operated at 87.1 percent of capacity, up 0.5 percentage point from the week before, the survey showed. It would be the highest rate since the week ended Jan. 4. Saudi Arabia, OPEC's biggest producer, said May 16 it will raise output by about 3.3 percent to 9.45 million barrels a day in June. The announcement followed a meeting between U.S. President George W. Bush and King Abdullah.

MCPE AVERAGE
ERCOT Houston North South Ave 76.52 77.36 76.03 77.32 Change -12.17 -11.81 -10.44 -11.88

To remove your name for our mailing list, please click here. Questions or comments? E-mail us at newsletter@capitolareaenergy.com

West

Capitol Area Energy, Inc. May 23, 2008

NATURAL GAS & ELECTRICITY
NATURAL GAS
Natural gas futures ended $ 0.16 lower on Friday to settle at $ 11.857 per MMBtu, following crude once again on short-covering ahead of the Memorial Day Holiday as the dollar dipped lower. It rose to 6.9% last week. Natural gas prices have gained 58% while crude is 39% higher this year. There was no floor trading in New York yesterday because of the Memorial Day holiday. Energy prices, especially for crude oil, will continue to rise until there are substantial signs of reduced demand because of the increase. There is huge demand for diesel and the only way get that out is through higher prices, thus dragging along the rest of the energy complex higher. Last week, the build-up in storage was below the average for this time of year. Natural gas futures reached an all-time high of $ 15.78 on December 15, 2005, as damage from Rita and Katrina that year curtailed output from the Gulf of Mexico, pushing prices higher. The 2008 hurricane season, which starts this week, may be more active than usual with as many as nine forming in the Atlantic Ocean, the National Oceanic and Atmospheric Administration (NOAA) said. Five hurricanes may be major. At the lower end of the forecast, as few as six Atlantic hurricanes may form, including two major ones, which make 2008 an average storm year. For the past two years, NOAA predictions have overestimated the number of hurricanes, caused by them drastically underestimating in 2005. Last week, the EIA reported a storage injection of 85 Bcf, a little lower than expected, compared to an injection of 101 Bcf a year ago. The report showed that total storage levels of 1.529 Tcf are now 3 Bcf below the 5-year average. For this week, look for an injection of about 85 to 95 Bcf. For this week, major resistance is seen at $ 12.88, with minor at $ 12.07, while major support is seen at $ 10.25 and minor at $ 11.74.

David Babin 5105 Pryor Lane Austin, Texas 78734 Phone 512-266-4710 Fax 512-266-4712 www.capitolareaenergy.com

NATURAL GAS PRICES
NYMEX June 08 03 Month Strip 06 Month Strip 12 Month Strip 18 Month Strip Last 11.86 11.97 12.09 12.12 11.72 Change +0.16 +0.15 +0.14 +0.13 +0.10

May 2008 Gas Prices
Point Price 11.28 10.83 10.08 NYMEX Houston Ship Channel

NYMEX Historical Natural Gas Prices 2005 15.00 2006 2007 2008

Waha Hub

EIA GAS STORAGE
10.00 5.00 0.00
Region East West Prod Bcf 797 222 595 1,614 Change 54 12 19 85

J

F 6.29

M

A

M 6.75 7.20 7.51

J 6.12 5.93 7.59

J

A

S

O

N

D

Total

2005 6.21

6.30 7.32 7.11 7.23 7.65 7.56

6.98 7.65 10.85 13.91 13.83 11.18 5.89 7.04 6.93 6.11 6.82 5.43 4.20 6.42 7.15 8.32 7.27 7.17

2006 11.43 8.40 2007 5.84 6.92

◄ LINKS ►
If you are interested in receiving electricity bids, simply complete our Letter of Authorization and fax it back to 512-266-4712 Click Here! LETTER OF AUTHORIZATION If you are currently under contract an would like notification of natural gas or electricity rates, please sign up to receive future prices. Click Here! NATURAL GAS & ELECTRICITY SIGN UP

2008 7.17 7.996 9.83 9.578 11.28

Crude Oil Trades Near $133 After Attack on Nigerian Pipeline
Crude oil rose, trading near $133 a barrel in New York, after a militant attack in Nigeria disrupted supplies from Africa's largest producer. The Movement for the Emancipation of the Niger Delta, Nigeria's main militant group, said it attacked a crude-oil pumping station yesterday operated by Royal Dutch Shell Plc. India will take a decision soon on whether to raise fuel prices, Oil Ministry spokesman S. Sundareshan said today. Crude oil for July delivery rose as much as $1.46 a barrel, or 1.1 percent, to $133.65 a barrel on the New York Mercantile Exchange from the May 23 close. Prices were at $133.28 at 11:08 a.m. London time. Brent crude oil for July settlement gained for a third day, climbing as much as $1.04 cents, or 0.8 percent, to $133.41 a barrel, on London's ICE Futures Europe exchange. It was at $132.73 a barrel at 11:11 a.m. London time. The contract gained 80 cents, or 0.6 percent, to $133.16 a barrel yesterday. Since the dollar decline, New York oil futures have increased 24 percent in the past two months and reached a record $135.09 on May 22 after the dollar posted its biggest weekly decline against the euro since March. A weaker dollar prompts investors to buy commodities as a hedge against inflation. Nigeria, Africa's biggest producer, is now OPEC's eighth- largest member by output after attacks by militants this year halted as much as 164,000 barrels of Shell's daily output. Some production has been lost after an attack on the Nembe Creek trunk line in Nigeria's Rivers State, Caroline Wittgen, Shell's spokeswoman, said yesterday. The attack was timed to protest the one-year anniversary of President Umaru Yar'Adua's administration, MEND said in an e-mailed statement. The group claimed responsibility for four attacks in April and a May 2 strike on oil installations operated by Shell's Nigerian venture. MEND actions forced Shell to announce delays in deliveries of Bonny light crude in April and May and halt the equivalent of 169,000 barrels a day of production.

MCPE AVERAGE
ERCOT Houston North South Ave 196.48 291.04 233.02 57.89 Change 77.47 206.81 96.41 66.68

To remove your name for our mailing list, please click here. Questions or comments? E-mail us at newsletter@capitolareaenergy.com

West

Capitol Area Energy, Inc. May 30, 2008

NATURAL GAS & ELECTRICITY
NATURAL GAS
Natural gas futures for July ended $ 0.229 higher Friday to settle at $ 11.703 per MMBtu, following the oil complex up ahead of the weekend. Natural gas flow on the Independence Trail pipeline operated by Enterprise Products Partners in the Gulf of Mexico, shutdown April 9th, may not resume service until the middle of June, a month later than originally planned. Last week, the EIA reported a storage injection of 87 Bcf, a little higher than expected, compared to an injection of 106 Bcf a year ago. The report showed that total storage levels of 1.529 Tcf are now 8 Bcf below the 5-year average. For this week, look for an injection of about 85 to 95 Bcf. For this week, major resistance is seen at $ 13.280, with minor at $ 11.913, while major support is seen at $ 10.306 and minor at $ 11.617.

David Babin 5105 Pryor Lane Austin, Texas 78734 Phone 512-266-4710 Fax 512-266-4712 www.capitolareaenergy.com

NATURAL GAS PRICES
NYMEX July 08 03 Month Strip 06 Month Strip 12 Month Strip 18 Month Strip Last 11.70 11.77 11.96 11.72 11.39 Change +0.23 +0.23 +0.21 +0.17 +0.14

NYMEX Historical Natural Gas Prices 2005 15.00 10.00 5.00 0.00 2006 2007 2008

May 2008 Gas Prices
Point NYMEX Houston Ship Channel Waha Hub Price 11.28 10.83 10.08

EIA GAS STORAGE
Region Bcf 845 234 622 1,701 Change 48 12 27 87

J

F 6.29

M

A

M 6.75 7.20 7.51

J 6.12 5.93 7.59

J

A

S

O

N

D

East West Prod Total

2005 6.21

6.30 7.32 7.11 7.23 7.65 7.56

6.98 7.65 10.85 13.91 13.83 11.18 5.89 7.04 6.93 6.11 6.82 5.43 4.20 6.42 7.15 8.32 7.27 7.17

2006 11.43 8.40 2007 5.84 6.92

2008 7.17 7.996 9.83 9.578 11.28

◄ LINKS ►
If you are interested in receiving electricity bids, simply complete our Letter of Authorization and fax it back to 512-266-4712 Click Here! LETTER OF AUTHORIZATION If you are currently under contract an would like notification of natural gas or electricity rates, please sign up to receive future prices. Click Here! NATURAL GAS & ELECTRICITY SIGN UP

Hurricane Season Update
It’s that time of year again and so we bring you the latest tropical update from AccuWeather.com. Hurricane Arthur Bringing Heavy Rain to Parts of Central America this morning. Hurricane season officially began Sunday, and Tropical Rainstorm Arthur continues to bring heavy rain to areas of southeast Mexico and Guatemala. Arthur is centered over southeastern Mexico and is drifting southwestward as it slowly dissipates. Arthur's most dangerous attribute continues to be the heavy rain associated with its tropical convection. An average of 5 to 10 inches of rain is expected to fall across the mountainous terrain of Belize, Guatemala, southern Mexico and western Honduras, causing flash flooding and mudslides. A strong ridge of high pressure over the south-central United States will keep all threats from this storm away from the lower 48. Elsewhere, a tropical wave along 63 west shows no signs of development. A more healthy tropical wave along 53 west and south of 13 north is moving west at 10-15 knots and will cause heavy and gusty showers and thunderstorms to northeast South America over the next 24 to 36 hours and locally heavy and gusty showers and thunderstorms to the southern Windward Islands later Monday into Tuesday. Another impressive tropical wave along 28 west and south of 15 north is tracking west at 15 knots and is causing showers and thunderstorms mainly south of 10 north.
To remove your name for our mailing list, please click here. Questions or comments? E-mail us at newsletter@capitolareaenergy.com

MCPE AVERAGE
ERCOT Houston North South West Ave 104.89 70.31 122.78 23.54 Change 19.59 -8.44 35.13 -2.31

Capitol Area Energy, Inc., June 6, 2008

NATURAL GAS & ELECTRICITY
NATURAL GAS
Natural gas futures for July rose $ 0.174 higher Friday to settle at $ 12.693 per MMBtu, driven by soaring oil prices and forecasts of scorching temperatures in the Northeast and Midwest. The heat has pushed into the Midwest and will arrive today in the Northeast. Temperatures as much as 14 degrees above normal may linger through June 12th. Natural gas futures are up 67% this year. The model continues to get warmer and now has 3 days near 100 degrees in New York City. Natural gas was also driven higher by the crude oil market jumping 8.4% to a new all time record high. NYMEX heating oil futures for July jumped $ 0.2932 to $ 3.974 per gallon and July crude oil futures jumped $ 10.75 to $ 128.54 per barrel. Last week, the EIA reported a storage injection of 105 Bcf, some higher than expected, compared to an injection of 110 Bcf a year ago. The report showed that total storage levels of 1.806 Tcf are now 1 Bcf below the 5-year average. For this week, look for an injection of about 95 to 105 Bcf. For this week, major resistance is seen at $ 13.855, with minor at $ 12.865, while major support is seen at $ 11.276 and minor at $ 12.406.

David Babin 5105 Pryor Lane Austin, Texas 78734 Phone 512-266-4710 Fax 512-266-4712 www.capitolareaenergy.com

NATURAL GAS PRICES
NYMEX July 08 03 Month Strip 06 Month Strip 12 Month Strip 18 Month Strip Last 12.69 12.74 12.89 12.50 12.04 Change +0.17 +0.18 +0.19 +0.17 +0.15

June 2008 Gas Prices
NYMEX Historical Natural Gas Prices 2005 15.00 10.00 5.00 0.00 2006 2007 2008
NYMEX Houston Ship Channel Waha Hub Point Price 11.916 11.66 10.43

EIA GAS STORAGE
Region East West Bcf 905 251 650 1,806 Change 60 17 28 105

J

F 6.29

M

A

M 6.75 7.20 7.51

J 6.12 5.93 7.59

J

A

S

O

N

D

Prod Total

2005 6.21

6.30 7.32 7.11 7.23 7.65 7.56

6.98 7.65 10.85 13.91 13.83 11.18 5.89 7.04 6.93 6.11 6.82 5.43 4.20 6.42 7.15 8.32 7.27 7.17

2006 11.43 8.40 2007 5.84 6.92

◄ LINKS ►
If you are interested in receiving electricity bids, simply complete our Letter of Authorization and fax it back to 512-266-4712 Click Here!

2008 7.17 7.996 9.83 9.578 11.28 11.92

Oil Dips After Record $ 11 Surge to New High
Oil eased on Monday after the biggest one-day price gain in the history of the market left traders and analysts divided over the explanation. U.S. light, sweet crude for July delivery fell by $1.42 to $137.12 by 6:40 a.m. EDT, while Brent futures dropped $1.81 to $135.88. U.S. prices surged by nearly $11 on Friday to a new record above $139 a barrel, taking two-day day gains to more than $16 a barrel and reversing two weeks of losses. Frantic buying was triggered by a range of factors, including a forecast by investment bank Morgan Stanley that oil prices could top $150 a barrel by the July 4 U.S. holiday, as well as by a falling U.S. dollar. Goldman Sachs' global head of commodities research Jeffrey Currie on Monday reinforced Morgan Stanley's view, telling a conference "demand for oil is weak, but supplies are even weaker." "I would suggest that the likelihood of that happening sooner has increased tremendously ... some time in summer," Currie said with reference to oil at $150. Oil's sixyear rally has gathered pace this year, with futures markets climbing by around 40 percent since January. The weakness of the U.S. currency has been a major factor behind this year's commodity price gains as dollar-denominated raw materials are relatively cheap for non-dollar buyers and offer investors a potential hedge against inflation. The dollar plunged on Friday after U.S. economic data showed the biggest jump in the U.S. unemployment rate for 22 years, denting expectations the Federal Reserve would raise interest rates.

LETTER OF AUTHORIZATION If you are currently under contract an would like notification of natural gas or electricity rates, please sign up to receive future prices. Click Here! NATURAL GAS & ELECTRICITY SIGN UP

MCPE AVERAGE
ERCOT Houston North South Ave 105.20 104.80 105.51 104.83 Change 8.79 10.91 8.47 54.62

To remove your name for our mailing list, please click here. Questions or comments? E-mail us at newsletter@capitolareaenergy.com

West

Capitol Area Energy, Inc., June 13, 2008

NATURAL GAS & ELECTRICITY
NATURAL GAS
Natural gas futures for July on the NYMEX slipped $ 0.173 on Friday to settle at $ 12.625 per MMBtu, ahead of the weekend amid a slump in oil prices and forecasts for below-average temperatures in the Eastern US. Futures prices last week were driven up first by a scorching heat wave in the Northeast and Mid-Atlantic and then by a lower-than-expected injection into storage. But Friday, the dip in crude oil futures more than weather or supply concerns drove natural gas prices down. A stronger dollar pushing oil prices lower and in turn put downward pressure on natural gas futures. The National Weather Service predicts below-normal temperatures in the Northeast and parts of the Midwest from June 18th to June 22nd. By today, highs in Chicago should cool into the lower 70’s, and highs by Tuesday should cool into the 70’s along the East Coast. Last week, the EIA reported a storage injection of 80 Bcf, somewhat less than expected, compared to an injection of 97 Bcf a year ago. The report showed that total storage levels of 1.886 Tcf are now 19 Bcf below the 5-year average. For this week, look for an injection of about 80 to 90 Bcf. For this week, major resistance is seen at $ 13.080, with minor at $ 12.825, while major support is seen at $ 9.985 and minor at $ 12.570.
NYMEX Historical Natural Gas Prices 2005 15.00 10.00 5.00 0.00 2006 2007 2008

David Babin 5105 Pryor Lane Austin, Texas 78734 Phone 512-266-4710 Fax 512-266-4712 www.capitolareaenergy.com

NATURAL GAS PRICES
NYMEX July 08 03 Month Strip 06 Month Strip 12 Month Strip 18 Month Strip Last 12.63 12.70 12.91 12.59 12.19 Change -0.17 -0.17 -0.15 -0.12 -0.10

June 2008 Gas Prices
Point NYMEX Houston Ship Channel Waha Hub Price 11.916 11.66 10.43

EIA GAS STORAGE
Region East West Bcf 959 267 660 1,886 Change 54 16 10 80

J

F 6.29

M

A

M 6.75 7.20 7.51

J 6.12 5.93 7.59

J

A

S

O

N

D

Prod Total

2005 6.21

6.30 7.32 7.11 7.23 7.65 7.56

6.98 7.65 10.85 13.91 13.83 11.18 5.89 7.04 6.93 6.11 6.82 5.43 4.20 6.42 7.15 8.32 7.27 7.17

2006 11.43 8.40 2007 5.84 6.92

◄ LINKS ►
If you are interested in receiving electricity bids, simply complete our Letter of Authorization and fax it back to 512-266-4712 Click Here!

2008 7.17 7.996 9.83 9.578 11.28 11.92

Tropical Storm Update
New Tropical Wave off African Coast: There are currently no well organized tropical systems in the Atlantic Basin, although there are a few areas of disturbed weather that will be closely monitored for potential development over the next several days. One such feature is a tropical wave near 79 west, south of 21 north, which will continue to bring an enhancement of showers and thunderstorms to central and eastern Cuba and Jamaica Sunday night. This wave is interacting with an upper-level trough found over the northwestern Caribbean and Bahamas, which is aiding in the enhancement of this activity. This system is encountering shear and is currently in an unfavorable area for development. However, this area of disturbed weather will be monitored closely for development as it heads west-northwest. Regardless of whether this system organizes, it will at the very least bring an enhancement of shower and thunderstorm activity to portions of the Bahamas and southern Florida Monday night and Tuesday. A tropical wave is located near 42 west, south of 19 north, moving westward. This wave is very poorly organized and is experiencing an abundance of dry air aloft with a large area of African dust found just to the east of the wave. This system will be monitored for development over the next several days. The most organized of tropical waves in the Atlantic Basin recently emerged off of the western Africa coast and is currently located near 25 west and south of 12 north. Satellite imagery indicates a defined cyclonic circulation and associated convection as it heads westward. However, there also appears to be an area of African dust near the wave which may be limiting convection. It will continue to be monitored as it moves westward through the central Atlantic. To remove your name for our mailing list, please click here. Questions or comments? E-mail us at newsletter@capitolareaenergy.com

LETTER OF AUTHORIZATION If you are currently under contract an would like notification of natural gas or electricity rates, please sign up to receive future prices. Click Here! NATURAL GAS & ELECTRICITY SIGN UP

MCPE AVERAGE
ERCOT Houston North South West Ave 129.96 102.60 150.51 104.78 Change 33.34 5.98 53.89 8.16

Capitol Area Energy, Inc., June 20, 2008

NATURAL GAS & ELECTRICITY
NATURAL GAS
Natural gas futures for July delivery on the NYMEX rose $ 0.133 Friday to settle at $ 12.994 per MMBtu, as crude oil surged and the dollar fell again against the euro. The dollar is poised for its biggest weekly decline against the euro in almost 3 months, on speculation the Federal Reserve will delay raising interest rates. One year ago futures closed at $ 7.391. Speculators, flush with hundreds of billions in cash supplied by the multinational banks, go into whichever market that they can best exploit by taking control of the dynamics and technicals in an effort to drive it 2 to 4 times above its true supply/demand value. The shear monetary weight of their presence sets up a pseudo supply/demand value on top of the bubble they create. If you think of the oil complex market as the $ 250 per barrel speculator cake and the natural gas as the $ 25 per MMBtu frosting, you see that first they have eaten half their cake and as of late, have been concentrating on finishing up on the first half of their frosting. Whether or not they have the market power to eat the whole thing, we shall probably see by the end of the year. Natural gas for delivery through January 2009 traded at a premium to July. That is a situation technically none as a contango, which encourages companies to increase storage now for use later. Gas for January for 2009 delivery traded close to $ 1.02 above July. Oil gained Friday after the New York Times reported that Israel held a rehearsal for a potential bombing attack on nuclear targets in Iran. Declining US imports of liquefied natural gas are also spur prices higher. The flow of LNG to US terminals in 2008 will be about 30% less than the 770 Bcf in 2007, the EIA said. Last week, the EIA reported a storage injection of 57 Bcf, somewhat less than expected, compared to an injection of 90 Bcf a year ago. The report showed that storage levels of 1.943 Tcf are now 52 Bcf below the 5-year average. For this week, look for an injection of about 70 to 80 Bcf. For this week, major resistance is seen at $ 13.58, with minor at $ 13.280, while major support is seen at $ 10.342 and minor at $ 12.840.

David Babin 5105 Pryor Lane Austin, Texas 78734 Phone 512-266-4710 Fax 512-266-4712 www.capitolareaenergy.com

NATURAL GAS PRICES
NYMEX July 08 03 Month Strip 06 Month Strip 12 Month Strip 18 Month Strip Last 13.00 13.08 13.30 12.96 12.53 Change +0.13 +0.13 +0.12 +0.12 +0.11

June 2008 Gas Prices
Point NYMEX Price 11.916 11.66 10.43

NYMEX Historical Natural Gas Prices 2005 15.00 10.00 5.00 0.00 2006 2007 2008

Houston Ship Channel Waha Hub

EIA GAS STORAGE
Region East West Prod Total Bcf 997 279 667 1,943 Change 38 12 7 57

J

F 6.29

M

A

M 6.75 7.20 7.51

J 6.12 5.93 7.59

J

A

S

O

N

D

2005 6.21

6.30 7.32 7.11 7.23 7.65 7.56

6.98 7.65 10.85 13.91 13.83 11.18 5.89 7.04 6.93 6.11 6.82 5.43 4.20 6.42 7.15 8.32 7.27 7.17

◄ LINKS ►
If you are interested in receiving electricity bids, simply complete our Letter of Authorization and fax it back to 512-266-4712 Click Here! LETTER OF AUTHORIZATION If you are currently under contract an would like notification of natural gas or electricity rates, please sign up to receive future prices. Click Here! NATURAL GAS & ELECTRICITY SIGN UP

2006 11.43 8.40 2007 5.84 6.92

2008 7.17 7.996 9.83 9.578 11.28 11.92

Crude and Weather Update
The Producer/Consumer summit over the weekend came away with no news to impact the petroleum markets. On Friday the Saudi’s made the official announcement of the 200,000 bpd increase while over the weekend they pledged to increase their production to 12.5 mbpd (from 9.7 currently) in the next 18 months. There is no other news of further output increases by any of the other producing nations. On Saturday night a Chevron pipeline in Nigeria was blown up which halted oil flows and Pengassen members are expected to stage a wildcat strike today at the Chevron facilities after talks broke down late last week. Shell announced force majeure on 220,000 bpd of Bonga that was shut in after the attacks on Thursday. The House Democrats are expected to offer a package of energy measures that will put producers in the position of either having to drill on their existing leases or pay higher fees. This seems to be in response to the Republican calls last week to remove the ban on oil and gas drilling in much of the OCS. A legal dispute with environmentalists will delay Shell’s plans to drill for oil and NG in the Beaufort Sea offshore Alaska through the remainder of the year. The CFTC report on Friday again showing some interesting numbers in the natural gas market. The futures only report showed a 4,996 decrease in shorts and a 1,843 increase in longs. However, the futures/options report showed a 1,229 increase in longs and a whopping increase of 20,367 shorts making the net position short 261,813 with 428,601 gross shorts. NOAA’s 6-10 and 8-14 day forecast showing increasing areas of above normal temps in the nation while there are no tropical developments although that are a few tropical waves that are being watched with no development expected. To remove your name for our mailing list, please click here. Questions or comments? E-mail us at newsletter@capitolareaenergy.com

MCPE AVERAGE
ERCOT Houston North South West Ave 103.50 100.86 105.49 101.07 Change 0.26 10.55 -7.46 9.72

Capitol Area Energy, Inc., June 27, 2008

NATURAL GAS & ELECTRICITY
NATURAL GAS
Natural gas futures for August on the NYMEX slipped $ 0.05 lower Friday to settle at $ 13.198 per MMBtu, on speculation mild weather in much of the eastern two-thirds of the nation will limit demand. Natural gas for delivery through March 2009 traded at a premium to July. When gas for future delivery costs more than near-month contracts, it’s a situation technically known as contango, which encourages companies to increase stockpiles now for use later. Below-normal temperatures are probable across Texas and parts of the Midwest and Northeast, starting July 5th. Moderate temperatures forecast for Texas and Florida will help curtail electricity demand. Those two states rely on natural gas fired power plants to meet increased electricity requirements when hot weather increases air-conditioner use. Hotter weather typically cuts the expansion of storage by increasing demand from gas-fired power plants for electricity to run air-conditioners. There is very little excessive heat across the nation. Last week, the EIA reported a storage injection of 90 Bcf, about what was expected, compared to an injection of 96 Bcf a year ago. The report showed that total storage levels of 2.033 Tcf are now 56 Bcf below the 5-year average. For this week, look for an injection of about 90 to 100 Bcf. For this week, major resistance is seen at $ 13.66, with minor at $ 13.335, while major support is seen at $ 10.490 and minor at $ 13.120
NYMEX Historical Natural Gas Prices 2005 15.00 10.00 5.00 0.00 2006 2007 2008

David Babin 5105 Pryor Lane Austin, Texas 78734 Phone 512-266-4710 Fax 512-266-4712 www.capitolareaenergy.com

NATURAL GAS PRICES
NYMEX July 08 03 Month Strip 06 Month Strip 12 Month Strip 18 Month Strip Last 13.11 13.22 13.43 13.11 12.71 Change +0.35 +0.37 +0.35 +0.31 +0.28

June 2008 Gas Prices
Point NYMEX Houston Ship Channel Waha Hub Price 11.916 11.66 10.43

EIA GAS STORAGE
Region East West Bcf 1059 289 685 2033 Change 62 10 18 90

J

F 6.29

M

A

M 6.75 7.20 7.51

J 6.12 5.93 7.59

J

A

S

O

N

D

Prod Total

2005 6.21

6.30 7.32 7.11 7.23 7.65 7.56

6.98 7.65 10.85 13.91 13.83 11.18 5.89 7.04 6.93 6.11 6.82 5.43 4.20 6.42 7.15 8.32 7.27 7.17

2006 11.43 8.40 2007 5.84 6.92

◄ LINKS ►
If you are interested in receiving electricity bids, simply complete our Letter of Authorization and fax it back to 512-266-4712 Click Here! LETTER OF AUTHORIZATION If you are currently under contract an would like notification of natural gas or electricity rates, please sign up to receive future prices. Click Here! NATURAL GAS & ELECTRICITY SIGN UP

2008 7.17 7.996 9.83 9.578 11.28 11.92

Oil Rises to Record on Concern Iran Supplies May Be Disrupted
Crude oil rose to a record above $143 a barrel on speculation the dispute over Iran's nuclear program may disrupt supply from OPEC's second-largest producer. Pressure on Iran to end its uranium enrichment program and the falling value of the U.S. dollar may drive prices to $170 a barrel, OPEC President Chakib Khelil said on June 28. Oil is headed for its biggest six-month gain since 1999 as investors shun equities for commodities, looking for a hedge against a weaker dollar and quickening inflation. `The weak dollar is also helping. The market does not want to break down just yet. Crude oil for August delivery rose as much as $3.46, or 2.5 percent, to $143.67 a barrel in electronic trading on the New York Mercantile Exchange. It was at $143.27 a barrel at 11:33 a.m. in London. Brent crude oil for August settlement rose as much as $3.22, or 2.3 percent, to $143.53 a barrel on London's ICE Futures Europe exchange, the highest since trading began in 1988. It was at $143.46 a barrel at 11:34 a.m. London time. Foreign ministers from the Group of Eight nations last week suggested more talks to coax Iran into opening its nuclear program to inspectors, after speculation the Islamic Republic faces an imminent Israeli strike. Israel Strike John Bolton, the former U.S. envoy to the United Nations, has said Israel would strike Iran between the U.S. presidential election in November and inauguration in January. The dollar has declined 7.3 percent this year against the euro. Buy Commodities Avoid the dollar ``at all costs,'' investor Jim Rogers said in Shanghai today. ``The best investments in 2008 are commodities and natural resources. Agricultural prices have much higher to go over the next decade. We have a shortage of everything including seeds.'' Hedge fund managers and other large speculators almost doubled their bets on rising prices in the week ended June 24, according to U.S. Commodity Futures Trading commission data. Net-long positions in New York oil contracts, the difference between contracts to buy and sell the commodity, gained 90.5 percent to 24,217 contracts. Long positions rose from a five-month low a week earlier while contracts to sell oil fell a second week to a two-month low. .

MCPE AVERAGE
ERCOT Houston North South West Ave 106.92 99.85 112.09 95.70 Change 17.12 11.68 21.07 7.40

To remove your name for our mailing list, please click here. Questions or comments? E-mail us at newsletter@capitolareaenergy.com