U.S. DEPARTMENT OF ENERGY

Office of Energy Assurance

ENERGY ASSURANCE DAILY

October 21, 2004

Electricity

Storm Drops Record Rainfall in Southern California, Causes Power Outages
As nightfall approached, San Diego Gas & Electric Co. had restored power to almost all of 29,000 customers who had lost it Tuesday and Wednesday. Company spokesman Peter Hidalgo said of the 7,500 customers still without electricity in the county by early afternoon Wednesday, power had been restored to all but 794 by 3 p.m. Wednesday was the fourth straight day of rainfall for San Diego after a record dry spell of 182 straight days. A strong storm originating in the Gulf of Alaska moved over the county in the morning, triggering local flooding, mudslides and power outages. Power was also knocked out to about 600 customers near UCLA in Los Angeles.

http://www.nctimes.com/articles/2004/10/21/news/top_stories/21_32_2510_20_04.txt http://www.nbcsandiego.com/weather/3838719/detail.html

http://www.nbc4.tv/news/3838618/detail.html

SCE’s San Onofre Nuke Plant to be Shut Until January

Southern California Edison (SCE) will keep its 1,080-megawatt San Onofre 3 nuclear unit in California shut until early January for additional work on the steam generators, the Edison International subsidiary said Thursday. The company said in a SEC filing it decided to replace the unit’s degraded pressurizer sleeves in the steam generators, which will lengthen the current outage from 55 days to 95 to 110 days. SEC shut the unit about September 27th for refueling and maintenance, and had expected it to return to service in mid-November. Extending the current outage to do this work now will allow SCE to move the 2006 refueling outage, previously scheduled for the summer of 2006, out of the peak summer period to the fall or winter of 2006. http://www.reuters.com/newsArticle.jhtml;jsessionid=XQKGAYNI31XU2CRBAEOCFEY?type=topNews&storyID=6570986

AEP to Postpone Maintenance Outage for Oklaunion Plant in TX Ohio-based American Electric Power Co Inc. postponed its plan to shut the boiler at its 676-megawatt Oklaunion coal-fired power unit in Texas for cleaning, the company told Texas regulators in a report Thursday. On Oct. 20, the company had said it would shut the boiler on Oct. 21-22 and remove slag and ash accumulation from Oct. 22-25. The company said it would reschedule the boiler cleaning outage to a later date, but did not name the date. http://www.reuters.com/newsArticle.jhtml;jsessionid=XQKGAYNI31XU2CRBAEOCFEY?type=topNews&storyID=6568248

Haynes Power Plant Expansion Nearly Complete in Long Beach, CA

The replacement of two units at the Haynes gas-fired plant in Long Beach, California, is proceeding ahead of schedule and should be completed before the end of the year, the Los Angeles Department of Water and Power said on Wednesday. John Schumann, director of power system planning and projects for the LADWP, said the new units were currently being tested and should be on-line by the end of 2004, ahead of the scheduled start date of mid-February 2005. A new combined cycle complex, consisting of two combustion turbines and one steam turbine and known as Units 8, 9 and 10, will have a total capacity of about 575 megawatts. It will replace the 230 MW Unit 3, which was retired in September, and the 230 MW Unit 4, which was taken out of service in November 2003. Both units are about 40 years old. Reuters, 1706 October 20, 2004

OPG’s Lakeview 1 Coal-fired plant in Ontario Shut for Short-term Outage

Reuters, 1333 October 21, 2004

ATCO Power/OPG to Open 580 Megawatt Brighton Beach Power Plant on Friday Nancy Southern, President & Chief Executive Officer, ATCO Group, and Jake Epp, Chairman, Ontario Power Generation, will officially open the new 580 megawatt Brighton Beach Power plant in Windson, Ontario

http://www.energycentral.com/centers/news/daily/article.cfm?aid=5203026

FPL Energy Announces Plans for New Wind Farm in Texas FPL Energy, LLC, a subsidiary of FPL Group, today announced it will build, own and operate a new wind farm in Texas, the Callahan Divide Wind Energy Center, to be located in Taylor County, Texas. The 114-megawatt Callahan Divide Wind Energy Center will be comprised of 76 1.5-megawatt wind turbines spread over a 6,000 acre site approximately 12 miles southwest of Abilene. Construction is expected to begin in the next few weeks and be completed no later than the first quarter 2005. The Callahan Divide project is FPL Energy's second announced wind project in 2004. The company previously announced the 106.5- megawatt Weatherford Wind Energy Center in Oklahoma. http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp%5EZklhgkrvZUfb%23%3A%40%24bfej%5B%21

GFA Carve-out Results in 'Significant' Reliability Concerns: MISO

Without careful and continual oversight, carving out approximately 10,300-MW of load under grandfathered transmission agreements could pose "potentially significant" reliability issues for the Midwest Independent Transmission System Operator, the organization said. In a filing to the US Federal Energy Regulatory Commission, MISO said it needs constant information about the

carved-out grandfathered agreements (GFAs) so it can operate the grid reliably. On Sept 16 FERC ordered MISO to exclude the 10,385-MW of capacity covered by GFAs from the grid operator's energy market, set to begin in March 2005.

http://www.platts.com/Electric%20Power/News/2316180.xml?S=n

DOE Picks Southern Company, OUC to Build Clean Coal Technology

Southern Company announced Thursday that the company has been selected by the U.S. Department of Energy to build an advanced 285-megawatt coal gasification facility in central Florida as part of the energy department's Clean Coal Power Initiative. The plant will gasify coal using state-of-the-art emissions controls, showcasing the cleanest, most efficient coal-fired power technology in the world.

Bloomberg News, 1315 October 21, 2004

Petroleum

Hurricane Ivan Oil Production Shut-in Statistics Shut-in oil production is equivalent to 25.22% of daily production of oil in GOM, which is approximately 1.7 million BOPD. The 428,785 barrels per day that is currently shut-in is approximately 2.18% of the 19.7 million barrels consumed in the U.S. each day. The cumulative shut-in oil production for the period 9/11/04-10/21/04 is 22,994,168 bbls, which is equivalent to 3.801% of the yearly production of oil in the GOM which is approximately 605 million barrels. http://www.mms.gov/ooc/press/2004/press1021.htm

CA/NV Pipeline Shutdown Halts Fuel Shipments to Las Vegas and Phoenix
The segments of the Kinder Morgan west line and Cal-Nev pipelines that deliver gasoline and jet fuel to Colton and eventually serve Barstow, Las Vegas, Imperial, and Phoenix, have been shut down since 9:30 a.m. on Thursday.
OPIS Price Alert, October 21, 2004 Bloomberg News, 1315 October 2004

Heating Oil Fears Push Futures to All Time High Again

November heating oil on the NYMEX settled at an all-time front-month high of $1.5604/gal Wednesday, and rose further to $1.5731/gal Thursday. http://www.platts.com/Oil/News/2858271.xml?S=n

Petroleos Venezuela, Unions Face Contract Deadline

Petroleos de Venezuela SA, South America's largest oil producer, will try to reach agreement with unions during negotiations today on a new contract covering 50,000 workers. The current accord expires at midnight. In a related development, some of Petroleos de Venezuela SA's facilities in the western state of Zulia were occupied by 10,000 unemployed workers demanding jobs, El Nacional reported.

Bloomberg News, 0942 and 1313 October 21, 2004

Natural Gas

Hurricane Ivan Gas Production Shut-in Statistics

Shut-in gas production is equivalent to 12.55% of the daily production of gas in the GOM, which is approximately 12.3 BCFPD. The 1,544.08 MMCF per day that is currently shut-in is approximately 2.57% of the 60.184 BCF consumed in the U.S. each day. The cumulative shut-in gas production 9/11/04-10/21/04 is 95.632 BCF, which is equivalent to 2.149% of the yearly production of gas in the GOM which is approximately 4.45 TCF. http://www.mms.gov/ooc/press/2004/press1021.htm

More Storage May be Key to Managing Natural Gas Prices With heating season here, enough natural gas appears to be in the ground to meet this coming winter's demand. But, commodity price volatility will continue—a situation that necessitates more such storage facilities gets built. That's the findings of the staff of the Federal Energy Regulatory Commission. http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5DZklijjmsYUfb%23%3A%40%24bfej%5B%21

Other News

Nothing to report.

Energy Prices

Latest (10/21/04) / Week Ago / Year Ago
CRUDE OIL
West Texas Intermediate US
$/Barrel / 54.90 / 54.69 / 30.19
NATURAL GAS
Henry Hub
$/Million Btu / 7.25 / 5.76 / 4.64

Source: Reuters

This Week in Petroleum from the Energy Information Administration (EIA)

http://tonto.eia.doe.gov/oog/info/twip/twip.asp

Updated on Wednesdays

Weekly Petroleum Status Report from EIA
http://www.eia.doe.gov/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/wpsr.html

Updated after 1:00pm (Eastern time) on Wednesdays

Natural Gas Weekly Update from EIA

http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp

Updated after 2:00 pm (Eastern time) on Thursdays