The January gas futures contract expired Wednesday at $3.084. February, the new prompt month, is currently trading at $3.00, $0.03 lower than it settled yesterday. By comparison, the 12 month strip is trading at $3.31/MMBtu and this year's winter strip (Feb 12 - Mar 12) is trading at $3.01/MMBtu.

Coal Losing Appeal

The Sunbury power plant in north central Pennsylvania is one of the nation's oldest coal-fired power plants, but as a part of a growing trend throughout the country, they will soon be making the switch to natural gas generators.

The plant plans on shutting down five of their six coal-fired generators and replacing them with two natural gas-fired turbines by 2015.

According to Vice President Ed Griegel, strict federal pollution standards and the high cost of coal are the major contributing factors towards the decision.

Storage

Working gas in storage was 3,548 Bcf as of Friday, December 23, 2011, according to EIA estimates. This represents a net decline of 81 Bcf from the previous week, 19 Bcf less of a decline than last week.

Stocks are still 297 Bcf higher than last year at this time and 428 Bcf above the 5-year average.

Weather

The moderate December weather will continue this weekend with a mix of rain and snow in the northeast.

There are no severe weather alerts at this time.