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U.S. DEPARTMENT OF ENERGY Office of Electricity Delivery and Energy Reliability ENERGY ASSURANCE DAILY

November 15, 2005

Highlights/Major Developments

Update: Hurricanes Katrina, Rita, and Wilma

For the latest damage assessment and restoration efforts concerning hurricanes, see the latest Gulf Coast Hurricanes situation report from the Office of Electricity Delivery and Energy Reliability (OE) of the U.S. Department of Energy @ http://www.oe.netl.doe.gov. For the statistics on shut-in oil and gas production in the Gulf of Mexico, please click on the following link: http://www.mms.gov/. For statistics on shut-in oil and gas production and pipeline status in Louisiana, please click on the following link: http://dnr.louisiana.gov/sec/execdiv/pubinfo/daily-onshore-prod.ssi

Damage Assessments Updates

MMS reports that 80 pipelines in Hurricane Katrina and 68 pipelines in Hurricane Rita have been reported to be damaged. The number of platforms destroyed has been changed to 112 instead of 113. One platform was destroyed by Hurricane Katrina (leg damage and severely leaning), and it was reported again for Hurricane Rita (completely missing) by the operator. ( 46 for Katrina and 66 for Rita).

Entergy New Orleans Plans to Increase Restoration Crews Faced with sharp public criticism of the pace of restoring power and natural gas to hurricane-ravaged New Orleans, the Entergy Corp. unit that serves the city has come up with $4.4 million to hire outside crews to speed up the process. http://www.katc.com/Global/story.asp? S=4122993&nav=EyB0

Entergy Continues Repairs of Hurricane-damaged Power Plants Entergy Corp. continued to repair hurricane damage at the 825-megawatt Michoud gas/oil power plant in Louisiana and two units at the 1,890 MW Sabine gas/oil station in Texas, a company spokeswoman said Tuesday. Hurricane Katrina knocked the Michoud plant out of service in late August. Hurricane Rita shut the Sabine station in late September. Separately, the spokeswoman said the company continued to work on the 485 MW Harrison County gas-fired station in Texas. Harrison shut on May 13 after a ruptured natural gas pipeline damaged the plant. Reuters, 11:36 November 15, 2005

1 Electricity

Over 57,000 Customers in Michigan Lose Power Nov 14 Many of those customers may not have electricity until this evening or even Wednesday morning. Dave Guzniczak of Great Lakes Energy said that about 10,000 customers were without service Monday afternoon. Consumers Energy reported that about 47,000 of its customers had no power Monday. Electrical cooperatives also had customers without power due to the storm. http://www.record-eagle.com/2005/nov/15weath.htm

FPL’s 693 MW Turkey Point 4 Nuke in Florida Returned to Power Nov 14 The company shut the unit by Oct. 24 before Hurricane Wilma struck the Florida coast. Reuters, 07:224 & 13:49 November 15, 2005

AES’ 226 MW Huntington Beach 2 Gas-fired Unit in California Shut Nov 14 Reuters, 02:09 November 15, 2005

Southern's Hatch 1 Nuclear Reactor in Georgia to Resume Service Today The plant shut Oct. 29 because of a transformer fire. Bloomberg News, 10:54 November 15, 2005

PPL's Susquehanna Reactor in Pennsylvania Returns to Service Nov 14 PPL brought its Susquehanna 1 nuclear reactor in Pennsylvania back into service last night after shutting down the unit on Oct. 28 because of friction in its control rods and fuel assemblies. Bloomberg News, 08:45 November 15, 2005

Entergy's Waterford 3 Nuke in Louisiana Exited an Outage Nov 14 The company shut the unit on Nov. 11 due to the mechanical failure of the condenser circulating pumps. Reuters, 13:49 November 15, 2005

More Cracks Found in Vermont Yankee Steam Dryer The Vermont Yankee nuclear plant has found dozens more cracks in a key plant component, but plant and Nuclear Regulatory Commission officials said Thursday that they don't matter much. Vermont's three- member congressional delegation wrote to the NRC urging it to take a close look at the issues surrounding the 62 cracks found in the plant's steam dryer, a component at the top of the reactor that removes moisture from steam before it is sent to the plant's turbine. Entergy Nuclear, Vermont Yankee's owner, said the cracks had been found with a new, higher-resolution remote camera. http://www.burlingtonfreepress.com/apps/pbcs.dll/article?AID=/20051111/BUSINESS/511110321/- 1/SUMMER&theme

Companies Interested in Building Plants in Wyoming A number of companies are considering Wyoming sites to build coal-fired power plants or coal gasification. The state has been working to increase the number of transmission lines since more will be needed to move any additional electricity produced from new plants. Denver-based North American Power Group recently revealed plans to construct a $1 billion coal-fired power plant near Douglas, along with a $180 million network of high-voltage lines to transmit the power to customers in Colorado. http://kutv.com/wyomingwire/WY-BRF--PowerPlants-wn/resources_news_html

For information on damage and restoration efforts to the electricity infrastructure due to Hurricanes Katrina, Rita, and Wilma, please see the Gulf Coast Hurricanes situation report from the Office of Electricity Delivery and Energy Reliability (OE) of the U.S. Department of Energy at the following link: http://www.oe.netl.doe.gov

Petroleum

Citgo Corpus Christi Refinery Unibon Unit Restarts Nov 13 2 Citgo Petroleum began to restart on Sunday a unibon unit and sulfur recovery unit at its 165,000 barrel-per- day refinery in Corpus Christi, Texas, according to a filing with state regulators. The unit was shut on Oct. 29, according to a previous filing, but had been expected to be back starting on Nov. 2. Reuters, 09:36 November 15, 2005

Hibernia Partners Find New Oil, Mum on Reserves Partners in Canada's biggest offshore oil project, Hibernia, have made a discovery at the huge East Coast field that could mean a major boost to recoverable reserves. Industry sources and Newfoundland officials said they have heard that more than 300 million barrels may be in a new reservoir called South Hibernia. Reuters, 13:58 November 15, 2005

For information on damage and restoration efforts to the petroleum infrastructure due to Hurricanes Katrina, Rita, and Wilma, please see the Gulf Coast Hurricanes situation report from the Office of Electricity Delivery and Energy Reliability (OE) of the U.S. Department of Energy at the following link: http://www.oe.netl.doe.gov

Natural Gas

Shell Says Repairs to Mars Platform Are `Progressing Well' The oil and gas production from the Gulf platform is still expected to resume in the second half of 2006 according to Shell’s head of exploration and production in the America’s. Bloomberg News, 13:38 November 15, 2005

U.S. Midwest Power Soars on Cold-Weather Forecasts, Rising Gas Power for delivery tomorrow at the Cinergy Corp. hub in Ohio jumped $13.36, or 27 percent, to $63.15 a megawatt-hour on the Intercontinental Exchange, an electronic energy market. The cost in Chicago for natural gas, a power-plant fuel, surged $1.0161, or 14 percent, to $8.5305 per million British thermal units on the Atlanta-based exchange. Bloomberg News, 13:16 November 15, 2005

Bay Gas, Tampa Electric Sign Natgas Storage Deal Bay Gas Storage Co. said Tuesday it would supply natural gas storage to TECO Energy unit Tampa Electric Co. through an underground gas storage cavern in Alabama that is expected to enter service by the summer of 2007. The new cavern will add about 5.0 bcf of working gas storage capacity along with injection and withdrawal capacities of 225 mmcf and 600 mmcf per day, respectively. Reuters, 11:09 November 15, 2005

For information on damage and restoration efforts to the natural gas infrastructure due to Hurricanes Katrina, Rita, and Wilma, please see the Gulf Coast Hurricanes situation report from the Office of Electricity Delivery and Energy Reliability (OE) of the U.S. Department of Energy at the following link: http://www.oe.netl.doe.gov

Other News

Arch Coal’s West Elk Mine in Utah Shut for at Least Six More Weeks Arch Coal, Inc. today announced that it does not expect its West Elk mine to resume operations for a minimum of six weeks following a sudden increase in combustion-related gases at the site last week. The 3 mine, run by (Arch’s) Mountain Coal Company typically produces more than six million tons of high-Btu, compliance-quality coal annually. The vast majority of that production is shipped to utilities that use West Elk coal as a fuel for electric generation. The mine expects to deplete its current inventory by the end of November. http://www.energycentral.com/centers/news/daily/article.cfm?aid=6094008

Energy Prices Latest Week Ago Year Ago (11/15/05) CRUDE OIL West Texas Intermediate US 57.05 59.70 46.95 $/Barrel NATURAL GAS Henry Hub 9.21 9.15 6.02 $/Million Btu 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