U.S. WEEKLY ENERGY OUTLOOK

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U.S. WEEKLY ENERGY OUTLOOK
U.S. WEEKLY ENERGY OUTLOOK
                      By Drew Lerner -- World Weather, Inc.

        Kansas City, Feb. 16 (World Weather Inc.) - Cooling is still expected in the eastern
half of the nation in the last day or two of February and early March. The forecast has not
changed much from that of last week, despite a diminishing Madden-Julian Oscillation
(MJO) event in the western Pacific Ocean and seasonal changes taking place in some
circulation patterns. The next week to ten days will be warmer than usual with a return to
cooler conditions likely shortly thereafter

         The MJO event that has been closely monitored for the past two to three weeks as it
moved from Africa across the Indian Ocean to Indonesia and Australia continues to show
signs of weakening while moving swiftly to the east and south. The event is centered on 160
degrees east longitude today, but its fast movement has the 15-day mean position back near
140 degrees east. The fast movement of the event has the atmosphere responding a little
more slowly than the movement of the event would normally dictate. That is why warmer
than usual weather is expected to just be getting under way this week. The warm up should
last for ten days in the Midwest, Plains and northeastern states minimizing supplemental
                                                       heating needs over the period.
                                                                MJO events centered near 140
                                                       and 160 degrees east longitude
                                                       correlate well with warmer than usual
                                                       weather in the eastern Midwest and
                                                       northeastern states. Once MJO events
                                                       reach the International Dateline (in
                                                       about a week to the days) they tend to
                                                       support a short term surge of cold air
                                                       moving through the eastern half of
North America.
         Despite the weakening MJO event, there is still a moderate signal suggesting a
trend back toward cooler weather in the very last days of this month and into early
March. The cooling trend may just get started at the first of March and may need another
few days for a noticeable cooler than usual pattern for the eastern U.S.
          The combined impact of weakening MJO intensity in the western Pacific Ocean
and seasonal warming in the atmosphere will make the next surge of cold air into the
nation's mid-section less intense than that of January and earlier this month.
Temperatures could still trend well below average, but probably not until the first week of
March and even then the cooling trend may take a little time to become focused on the
eastern states as is ultimately expected.
                                                                Today's Arctic Oscillation
                                                        (AO) Index suggests some
                                                        contraction of arctic air into the
                                                        higher latitudes will take place during
                                                        the next week. The AO will trend
                                                        higher for about a week and then
                                                        should turn a little lower. The last

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U.S. WEEKLY ENERGY OUTLOOK
U.S. WEEKLY ENERGY OUTLOOK
                      By Drew Lerner -- World Weather, Inc.

week of February should find the index steadily falling suggesting the expansion of cooler
air back into the central and eastern parts of North America.
        Most of the long term trend models that World Weather, Inc. uses suggest a return of
warm weather in the western U.S. and cool conditions in the east will take place in March
and that is taking precedent over the MJO event that appears to be weakening. The variance
predicted in AO and North Atlantic Oscillation (NAO) index values over the next ten days
does offer a little more doubt in the forecast than in previous weeks. However, the trend is
in place and it fits well enough with the long term trend models to believe some kind of
verification will take place.

TWO WEEK FORECAST

                                                  Temperatures this week will quickly warm
                                                  up from the very cool conditions that
                                                  present in some eastern states today. A
                                                  broad region of unseasonably warm air will
                                                  build up over the Plains and Rocky
                                                  Mountain region over the next couple of
                                                  days before losing a little intensity as it
                                                  moves into the Midwest later this week.
                                                  Temperatures in the Midwest will warm
                                                  rapidly and cool back down to a seasonal
                                                  range in a relatively few number of days.
                                                  However, the bias for temperatures in the
Midwest during the Feb 19-24 period will be above average minimizing heating fuel
demand.
       Most Atlantic Coast states will see their coolest weather today into Wednesday.
After Wednesday morning a steady warming trend is expected that should produce a full
week of above average warmth beginning late this week and lasting through the end of
February.
       The second week of the two week outlook should provide a period of transition from
the warm weather dominating this week to a cooler regime for the Great Plains late in the

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U.S. WEEKLY ENERGY OUTLOOK
U.S. WEEKLY ENERGY OUTLOOK
                     By Drew Lerner -- World Weather, Inc.

Feb. 25-Mar. 2 period. None of the eastern Midwest or northeastern states will be colder
than usual through Mar. 2, but cooling should be under way in the Plains and Midwest
when the second week draws to a close. Temperatures in the western U.S. may have a
cooler than usual bias during the second week of the two-week outlook, but a warming trend
should get under way early in March.

                                                               PAST WEEK'S
                                                                WEATHER
                                                                  Temperatures this past
                                                          week were below average over
                                                          a large part of the Great Basin,
                                                          the central and southern Rocky
                                                          Mountain region, most of the
                                                          Great Plains and portions of
                                                          both the Midwest and
                                                          southeastern states.
                                                          Temperatures were well below
                                                          average in parts of the Plains
                                                          and interior western states, but
                                                          most of the heating oil and
                                                          natural gas consuming states
                                                          missed out on the coldest
                                                          conditions. Temperatures in the
                                                          Midwest ranged from near
                                                          normal in the east to about 4
                                                          degrees below average in the
                                                          west. Most of New England and
                                                          eastern New York state were
                                                          warmer than usual by just a few
                                                          degrees. Florida was also
                                                          warmer than usual.
                                                                  Degree day
                                                          accumulations for the week
                                                          were above average in most of
                                                          the Great Plains, the central and
                                                          southern Rocky Mountain
                                                          region and the Great Basin.
                                                          Accumulations of 40 to 80 units
                                                          above average were noted in the
                                                          central and southern Plains
                                                          while 80 to more than 120 unit
                                                          departure from normal

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U.S. WEEKLY ENERGY OUTLOOK
U.S. WEEKLY ENERGY OUTLOOK
                                        By Drew Lerner -- World Weather, Inc.

accumulations occurred out west.
        Meanwhile, degree-day accumulations in the Midwest and most eastern states were
considered normal during the past week. Season to date accumulations have continued
below average in many areas in the nation with the exception being in the far northern
Plains, upstate New York and portions of central Pennsylvania. A small part of the Great
Basin has experienced accumulations slightly above average so far this season as have some
of the Atlantic Coast states outside of New York and western New England. A large part of
the western and southern Plains, the western and lower Midwest, northern New England and
the far western states continue to report a milder than usual winter as far as degree day
accumulations are concerned.
        The graphic below shows the relatively normal heating degree day accumulations
continuing in parts of the Midwest and northeastern states.

                                             Seasonal HDDs to Date (Feb. 14)
                                                                             Northern Cities
        5000
        4500
        4000
        3500
        3000
  HDD

                                                                                                                                                 4392
        2500

                                                                                                                                                        4338
                                                                                                                                          4206

                                                                                                                                                                      4217
                                                                                                           4114
                                                                                                    4057

                                                                                                                                                               3975
                                 3870

                                                                                             3871

                                                                                                                                                                             3891
                                                                                                                                   3808
                   3699
                          3572

                                                                                                                     3487
                                                                                                                            3484

        2000
                                                           3337
                                             3133

                                                                                  3105
                                                    3094

                                                                    2881
                                                                           2881

        1500
        1000
         500
                     Boston                  New York                Wash DC                 Cleveland               Cincinnati            Chicago               Denver
           0

                                                                      2003                   NORMAL                         2002

                                   Seasonal HDDs to Date (Feb. 14)
                                                                  Southern/Western Cities
                                                                                                                                                                        3021

       3300
                                                                                                                                                                       2882

       3100
                                                                                                                                                                      2774

       2900
       2700
       2500
       2300
       2100
 HDD

       1900
       1700
       1500
               2217

       1300
              2069
              2021

                                                                                   1829
                                                                                   1828

       1100
                                                                                  1578

                                                                                                                                                   791
                                                                                                                                                  743

        900
                                                                                                                                                 627
                                                                                                       1175
                                                           1160

                                                                                                       1152
                                                           1078

                                                                                                       994

        700
                                                           973

                                                                                                                              930
                                                                                                                             749
                                   676
                                   418
                                   476

                                                                                                                             499

        500
        300
               Atlanta                  Orlando        New Orleans                  Dallas                 Houston            Phoenix        Los Angeles              Seattle

                                                                    2003                     Normal                            2002

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U.S. WEEKLY ENERGY OUTLOOK
U.S. WEEKLY ENERGY OUTLOOK
                          By Drew Lerner -- World Weather, Inc.

All World Weather, Inc. forecasts and comments pertaining to present, past and future weather conditions included
in this report constitute the corporation's judgment as of the date of this report and are subject to change without
notice. Comments regarding damage or the impact of weather on agricultural and energy as well as comments made
regarding the impact of weather on the commodity and financial markets are the explicit opinions of World
Weather, Inc. World Weather, Inc. can not be held responsible for decisions made by users of the Corporation's
information in any business, trade or investment decision.

©2004 World Weather, Inc. Any unauthorized redistribution, duplication or disclosure is prohibited by law and will
result in prosecution.

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U.S. WEEKLY ENERGY OUTLOOK
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