WSI Energycast Spring Outlook Calls for Cold Coastal US, Warm Interior US

WSI expects the following monthly trends:

• In April, cooler-than-normal temperatures are expected in the Plains, Northeast, northern Rockies, and the California coast. Warmer-than-normal temperatures are expected in the Southeast, Ohio Valley, Great Lakes, and much of the intermountain West.

• In May, cooler-than-normal temperatures are expected in the East, with warmer-than-normal temperatures in most of the West.

• In June, cooler-than-normal temperatures are expected to be confined to the coastal sections of the country, with warmer-than-normal temperatures expected over most of the interior US.

According to WSI seasonal forecaster Dr. Todd Crawford, "We expect a pretty cold April in the northern and central Plains, along with cool weather in the Northeast. As spring progresses, temperatures should warm up in the Plains and most of the interior US, while coastal cities remain cool."

Effects in the Marketplace
WSI's forecast indicates cooler-than-normal temperatures in the northern Rockies and the northeastern and central Plains states for April. Recent cool weather in March combined with cooler-than-normal weather in April in the key gas-consuming regions could place end season inventories somewhat lower than expected and lead to a more bullish outlook during the first part of the inventory building season.

Power prices in the Northeast will be moderated by the cooler weather forecast for the next three months. In April, weather impacts will be overshadowed by generator outages. Of particular interest is the June forecast as an early summer indicator. Cooler-than-normal weather in June will lower the chance of early season heat events. In California, normal to wetter than normal precipitation outlooks provide an expectation of a return to normal hydro outputs in May and June.

WSI successfully predicted (1) the unusually cold January 2004 in much of the eastern US, (2) a cool 2003 summer in the Southeast and mid-Atlantic, and (3) a cold '02-'03 winter in the Southeast. 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 forecast update for April-June will be issued on March 25, with the next new forecast package (for May-July) issued on April 13.

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.wsienergycast.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.