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

November 7, 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 @ https://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

Electricity

127,000 DTE Customers Lose Power in Michigan Crews continued to work to restore power to more than 127,00 customers in the 17 county service territory of DTE who lost power following a severe wind storm on Sunday, November 6. By Sunday evening, some 78,000 customers remained without power. http://www.macombdaily.com/stories/110705/loc_winds001.shtml

Storm Knocks Out Power to More than 31,000 Niagara Mohawk Customers A severe thunderstorm that swept through the Ohio valley knocked out power to at least 31,000 customers of Niagara Mohawk (National Grid) in New York on November 7. National Grid anticipates that power will be fully restored by sometime during the afternoon of November 7. http://www.uticaod.com/apps/pbcs.dll/article?AID=/20051107/NEWS/511070310/1001 http://www.wivb.com/Global/story.asp?S=4081608&nav=0Rae http://www.rny.com/archive/localnews/2005/november/07fiercethunderstormdropst.html

Severe Storm Knocks Out Power to Thousands in Indiana A fast moving storm with high winds caused widespread damage and knocked out power to some 21,000 to 25,000 customers in the Evansville, Ft. Wayne area, and some 25,000 in the Decatur area. Sources: http://www.decaturdailydemocrat.com/articles/2005/11/07/news/news/news04.txt http://www.wane.com/Global/story.asp?S=4080461&nav=0RYb http://www.southernillinoisan.com/articles/2005/11/07/top/14249479.txt http://www.indystar.com/apps/pbcs.dll/article?AID=/20051106/ NEWS01/511060524

1 27,000 Lose Power in Western Pennsylvania Wind gusts of up to 50 mph caused widespread outages in Western PA on Sunday. About 21,000 Allegheny Power customers lost power, and some could be without electricity until tonight. About 6,000 Duquesne Light Co customers also lost power. http://pittsburghlive.com/x/tribune-review/s_391860.html

Nearly 20,000 Lose Power in the Ohio Valley Wind gusts caused nearly 12,000 American Electric Power Customers in Belmont and Jefferson counties to lose power. An additional 4,000 customers in Ohio and Marshall Counties were also without power, as well as 3,000 Allegheny Power customers in Hancock and Brooke counties. http://www.statejournal.com/story.cfm?func=viewstory&storyid=6450

About 100,000 Lose Power in Ontario Sunday High winds caused about 100,000 customers across Ontario to lose power. Hardest hit was the Georgian Bay Region. http://www.durhamregion.com/dr/regions/top_stories/story/3146649p-3647226c.html

Entergy Obtains Federal Okay to Expand Vermont Yankee The Nuclear Regulatory Commission staff has recommended that Entergy be allowed to expand the capacity of its Vermont Yankee nuclear generating station by 100 MW. Although the permit was granted some two weeks earlier, the news was made public only on November 3. http://pro.energycentral.com/professional/news/power/news_article.cfm?id=6071684

Energy Northwest’s 1,108 MW Columbia Nuke in Washington Reduced to 60 Percent November 7 According to a Nuclear Regulatory Commission report, the unit was reduced for maintenance over the weekend. Reuters, 15:19 November 7, 2005 Reuters, 7:43 November 7, 2005

SCE’s 790 MW Mohave 2 Coal-fired Unit in Nevada Back on Line November 6 The unit went down on Friday for unplanned maintenance because of an equipment failure. Reuters, 15:19 November 7, 2005 Reuters, 9:37 November 7, 2005

Progress Energy Starts New 500 MW Natural Gas-fired Unit at Hines Power Station in FL According to a company release, a third 500 MW unit at Progress Energy’s Hines power station entered commercial service by November 7. The combined-cycle unit consists of two combustion turbine generators and a system for recovering exhaust heat from the combustion turbines to produce steam. The combined- cycle system is very efficient, increasing electricity generation by up to 50%. Reuters, 14:49 November 7, 2005

Duke Energy Corp’s 1,100 MW McGuire 2 Nuke in NC Back to Full Power November 7 The unit was reduced to 50 percent last week due to a problem with the cooling for one of the transformers. Reuters, 14:28 November 7, 2005 Reuters, 7:25 November 7, 2005

Exelon’s 850 MW Dresden 3 Nuke in IL Shut November 7 The unit was shut to work on a service water system. Reuters, 14:28 November 7, 2005

OPG’s Coal-Fired Unit 6 in Ontario Shut November 7 The unit shut for a short term forced outage. Reuters, 14:28 November 7, 2005 2 For information on damage and restoration efforts to the electricity infrastructure and the number of power outages 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

New Diesel Technology Could Restrict EPA’s Ability to Issue Waivers if Fuel Shortages Arise Next year, new diesel vehicles that come equipped with sulfur-sensitive particulate filters designed to meet a tougher sulfur standard may preclude the EPA from issuing diesel waivers should the need arise as it did in the wake of shortages that developed following Hurricanes Katrina and Rita. If diesel fuel with a higher sulfur content is used, it could damage the filtering system. http://www.platts.com/Oil/News/102555.xml?S=n

Fatal Accident at Valero’s Delaware City Refinery Two workers were killed on November 6 when they entered a unit with a “nitrogen atmosphere” at the Delaware City refinery of Valero. The refinery was undergoing extensive maintenance at the time; an investigation is underway as to why the men were in a location where they were not scheduled to be working. Reuters 18:02, November 6, 2005

EnCana Announces Plan to Spend $5 Billion on Oil Sands Expansion On November 7, EnCana announced a plan to massively expand its oil production from the oil sands. The company will spend $5 billion to boost capacity from 30,000 b/d to 500,000 b/d in a series of 30,000 b/d increments. Reuters 14:27, November 7, 2005.

Chevron Begins Construction of U.S. Gulf of Mexico Energy Project Chevron Corporation today announced that it has begun construction of the floating production facility to be installed in the Tahiti Field which is expected to achieve first production by mid-2008. Tahiti is designed to have a daily production capacity of 125,000 barrels of crude oil and 70 million cubic feet of natural gas, and will be developed in phases. The first phase of development was fully sanctioned in August 2005. http://www.chevron.com/news/press/2005/2005-11-07_1.asp http://intelligencepress.com/ http://biz.yahoo.com/prnews/051107/sfm105.html?.v=23

World Energy Demand Cannot be Sustained -- IEA The International Energy Agency argued that unless soaring oil demand is curbed, oil prices will continue to climb and pollution will soar. The IEA said that the “projected trends have important implications and lead to a future that is not sustainable," Reuters 10:38, November 7, 2005.

For information on damage and restoration efforts to the electricity infrastructure and the number of power outages 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

3 Natural Gas

Transportation Agreement for Chevron’s Sabine LNG Facility Announced Chevron announced on November 7, that it has reached an agreement with Kinder Morgan for up to 1.0 bcf per day of capacity on a new pipeline and for an additional 600 mcf per day on an existing line of Kinder Morgan’s. The new pipeline will be in service by 2009. Reuters 8:03, November 7, 2005. http://www.chevron.com/news/press/2005/2005-11-07.asp http://phx.corporate-ir.net/phoenix.zhtml?c=93621&p=irol-newsArticle&ID=779284&highlight= http://biz.yahoo.com/prnews/051107/dam019.html?.v=31

Other News

Ohio River Reopens to Traffic The Ohio River was reopened to shipping on the afternoon of November 6 following a failure to a lock mechanism that occurred on November 1. More than 500 barges were backed up awaiting passage through the Hannibal Locks. The Ohio is the busiest waterway for transporting coal in the U.S. Source: Associate Press, November 6, 2005; WTRF Channel 7, Wheeling, VW Stubenville, OH. http://www.wtrf.com/story.cfm?func=viewstory&storyid=6451

Energy Prices Latest Week Ago Year Ago (11/07/05) CRUDE OIL West Texas Intermediate US 59.40 59.80 49.10 $/Barrel NATURAL GAS Henry Hub 8.77 12.18 6.62 $/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