Genscape and AER Forecast Higher Generation Fuel Consumption This Summer

Genscape and AER, leading experts in power flow information and seasonal temperature forecasts, predict the nation's power plants will consume more natural gas and coal than they did during the record-breaking summer of 2007. According to their report, higher consumption will add to the upward pressure on energy commodities, already buoyed by limited supply and strong international demand. It will also mean higher electricity bills for US households and businesses.

The forecast calls for higher consumption in all regions of the country primarily driven by warmer weather. Natural gas is most affected by higher power demand since the nation's spare generation capacity is mostly gas-fired. Generation from coal plants are already running at near maximum output levels.

This proprietary forecasting technique uses AER's seasonal weather forecasts and Genscape's real-time electricity generation data to create an accurate data-driven estimate of natural gas and coal demand by the power sector during the summer months. Quantitative forecasts of monthly consumption by gas region and coal source are included in the report. The companies also jointly produce end-of-season natural gas and coal storage estimates.

"The combination of our real-time data with AER's temperature forecasts merges the most up-to-date insight into the power industry with the most reliable seasonal forecast. The result is gas and coal consumption forecasts that are unmatched in the industry," Abudi Zein, Genscape Senior Vice President said.

"Our clients use our suite of weather forecasts to make highly profitable planning decisions. In teaming up with Genscape, we are expanding our forecast services with targeted tools for specific market needs." said Cecilia Sze, AER's President and CEO.

About AER
Atmospheric and Environmental Research, Inc., established in 1977 and headquartered in Lexington, Massachusetts, is a Nobel prize winning environmental research and consulting company. AER provides quantitative probabilistic weather and hurricane forecasts & consultation to support trading and planning decisions in the Energy and Financial Markets. AER scientists are recognized experts in climate, hurricane, emissions and weather forecasting.

About Genscape
Genscape Inc. is the originator of real-time power supply information to support decision- making for power marketers, regulators, utilities, distributors, and other energy market participants. In addition to real-time power flows, Genscape supplies data on the fundamentals of coal, gas, oil and emissions in the United States and Europe. Genscape's parent company is DMG Information, the information publishing division of the Daily Mail and General Trust plc.



AER, Inc.
Stephen Walker, +1 781-761-2312
Marketing Communications

Genscape, Inc.
Mike McAuiffe, +1-502-583-4315