![](media/image1.jpeg){width="8.5in" height="3.5027777777777778in"}U.S.
DEPARTMENT OF ENERGY

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

**December 13, 2004**

**Electricity**

**Power Outage Leaves Center City In The Dark**

PECO (Philadelphia Electric Company) is investigating the cause of a
power outage that snarled traffic, interrupted shopping and cut
electricity to more than 17,000 customers in and around Center City
Saturday. The electricity went out at 7:33 a.m. for customers served by
a substation on Delaware Avenue at North Beach Street. It was restored
to all of the 17,400 affected homes and businesses by 12:40 p.m., said
Michael Wood, spokesman for PECO Energy Co. The investigation is
focusing on a possible circuit malfunction that might have affected
relays from the Delaware Avenue substation to smaller substations at
Sixth and Arch Streets and in the 2800 block of Trenton Avenue in North
Philadelphia, Wood said.

<http://www.philly.com/mld/inquirer/news/local/10398671.htm?1c>

**Wind Storm Knocks Down Trees, Power Lines**

Flying branches and wind-downed trees left thousands of Portland General
Electric customers without power over the weekend and into Monday
morning as a fierce wind storm blew through Oregon and Washington. The
brunt of the storm hit on Sunday, with the high winds leaving thousands
without power for several hours. Strong easterly wind battered the
Portland and Vancouver areas. PGE spokesman Mark Fryburg said 17,000
customers were without power at the peak of the outage. At 5 p.m.
Sunday, about 12,000 PGE customers were without power, but by 6 a.m.
Monday morning, that number was down to only 136 PGE customers, mostly
located in the Estacada area off Highway 224. In the Vancouver area,
power was back up Monday morning, after as many as 6,000 customers lost
electricity during the peak of the problem over the weekend.

<http://www.kgw.com/news-local/stories/kgw_121204_news_windy_weather.1babc2e.html>

<http://www.katu.com/news/story.asp?ID=73373>

**Exelon\'s Dresden 2 Reactor in Illinois Returning to Service**

Exelon Corp.\'s 912-megawatt Dresden 2 nuclear generating station began
returning to service Sunday morning following a six-week shutdown to
repair a rotor crack. According to the Company, the unit, which was
shutdown on November 1, was operating at 82 percent Monday morning, no
estimate as to when the unit would reach full power was provided. A
similar rotor-crack repair for the twin Unit 3 was completed last week
and the unit was operating at 96 percent of capacity Monday morning as
it continued to exit a refueling outage. Meanwhile, Unit 3, taken out of
service for refueling on about October 26 remained shut. The facility is
located in Morris, Illinois, about 60 miles southwest of Chicago.

Bloomberg 10:21, December 13, 2004

Reuters 07:32 and 14:44, December 13, 2004

**PSEG's Salem Unit 2 Returning To Power**

PSEG\'s 1,150 MW Salem 2 nuclear unit in New Jersey was in the process
of returning to service early Monday, climbing to 2 percent power. The
unit was shut on Dec. 4 due to an oil tanker spill in the Delaware
River. The adjacent 1,150 MW Salem I nuclear unit remained shut.

Reuters 14:44, December 13, 2004

**Entergy's River Bend Returning To Full Power**

Entergy's 936 MW River Bend nuclear generating station unit rose to 68
percent power early Monday. The unit was taken off line on Friday
afternoon after a compressor that provided power to the feedwater
control system failed. The unit was reconnected to the grid on Sunday
afternoon. The River Bend station is located in St. Francisville,
Louisiana, about 24 miles north-northwest of Baton Rouge.

Reuters 07:54 and 14:44, December 13, 2004

**Pacific Intertie DC Line Down For Unplanned Maintenance**

According to power traders, the Pacific Intertie DC line was down early
Monday for an unplanned outage. The line is a key transmission link
between the Northwest and California, recently returned to service after
major maintenance, has been experiencing persistent problems since the
work was completed.

Reuters 13:53, December 13, 2004

**Diablo Canyon Unit 2 Nuke Holds At 8 Pct Power**

The 1,100-megawatt Unit 2 at PG&E's Diablo Canyon nuclear generating
station was operating at 8 percent power early Monday and expected to
remain at that level for about 48 hours, a plant spokesman said in a
recorded update. The unit was expected to reconnect to the grid over the
weekend but its return has been delayed by some additional maintenance
on secondary systems. The unit will connect to the grid when it reaches
10 percent to 12 percent power. Meanwhile, the adjacent 1,100 MW unit 1
continued to operate at full power. The Diablo Canyon station is located
in Avila Beach, California, about 195 miles northwest of Los Angeles.

Reuters 12:02, December 13, 2004

**WPS\'s Kewaunee Nuke Climbs To 90 Percent Power**

Wisconsin Public Service\'s 557-megawatt Kewaunee nuclear unit in
climbed to 90 percent of capacity early Monday. On Friday, the unit was
operating at 65 percent power as it continued to exit a refueling outage
that began on Oct. 11. The Nuclear Management Co., which operates the
unit, started the reactor on Nov. 26 but had to shut it down after some
valves closed. The Kewaunee station is located in Kewaunee, Wisconsin,
about 30 miles east of Green Bay, Wisconsin.

Reuters 07:38, December 13, 2004

**FPL\'s Turkey Point 3 At Full Power**

FPL Group Inc.\'s 693-megawatt unit 3 at the Turkey Point nuclear
generating station was operating at full power early Monday up from 58
percent of capacity on Friday. Power was reduced at the unit last
Wednesday to fix a condenser tube leak on the secondary, non-nuclear
side of the plant. Meanwhile, the adjacent 693 MW unit 4 continued to
operate at full power. The Turkey Point station is located in Florida
City, Florida, about 25 miles south of Miami.

Reuters 07:21, December 13, 2004

**Petroleum**

**Hurricane Ivan Oil Production Shut-in Statistics**

Crude-oil and natural gas production losses in the Gulf of Mexico from
Hurricane Ivan were essentially unchanged form the previous report,
according to the Mineral Management Service (MMS) latest report on
damage from the storm. (The report reflects responses from 17 companies
as of 12:30 p.m. New York time.)

-   Oil production was 151,777 barrels below normal, equivalent to 8.93%
    of daily production of oil in GOM, which is approximately 1.7
    million BOPD.  The 151,777 barrels per day that is currently shut-in
    is approximately 0.77% of the 19.7 million barrels consumed in the
    U.S. each day

-   The cumulative shut-in oil production for the period
    9/11/04-12/13/04 is 34,891,906 bbls, which is equivalent to 5.767%
    of the yearly production of oil in the GOM which is approximately
    605 million barrels

<http://www.mms.gov/ooc/press/2004/press1213.htm>

**Iraq\'s Oil Exports From South Resume After Halting for One Day**

Iraq\'s oil exports from the Persian Gulf resumed this afternoon after
they were halted for almost a day by a power cut. According to unnamed
sources, exports from the Basra oil terminal, resumed at 12:40 p.m.
local time. Power cuts, which have troubled Iraq after the U.S.-led
invasion last year, have deepened in the last few weeks. Baghdad has
been mostly without electricity in the past 24 hours and northern
refineries have stopped operating due to lack of power, officials say

Bloomberg, 08:25, December 13, 2004

Reuters, 05:25, December 13, 2004

**Sabotage halts Iraqi crude flow to Ceyhan-shippers**

Sabotage has halted the flow of oil through Iraq\'s northern export
pipeline to Ceyhan, shippers said on Monday. Iraqi officials had said
previously oil was still flowing intermittently despite sabotage
attacks, but shippers said the oil had ceased to flow early on Sunday.

Reuters, 10:08, December 13, 2004

**Oil In Surplus This Year-End Compared With Usual Deficit: Purnomo**

The world oil market has surplus of around 1-mil b/d this year-end
compared with a deficit of 600,000 b/d seen in the same period in
previous years hence OPEC decided to cut output, OPEC\'s president
Purnomo Yusgiantoro said Monday, defending the group\'s decision in
Cairo to cut production by 1-mil b/d from January. \"The recent drop in
oil prices is because of over-supply this month,\" Purnomo said. January
West Texas Intermediate settled at \$40.71/bbl on the New York
Mercantile Exchange on Dec 10, down 17% from its Nov 30 settle and down
27% from a record high of \$55.67/bbl made in October this year. OPEC
also expects world oil demand to be lower at 82-mil b/d in the second
quarter of 2005 compared with the cartel\'s earlier forecast of 83-mil
b/d, Purnomo said. \"Oil demand will drop next year due to slower global
economic growth of 4% compared with 4.8% this year,\" he told reporters
in Jakarta.

Platts, December 13, 2004

<http://www.platts.com/Oil/headlines.jsp>

#  

# Natural Gas

**Hurricane Ivan Natural Gas Production Shut-in Statistics**

Crude-oil and natural gas production losses in the Gulf of Mexico from
Hurricane Ivan were essentially unchanged form the previous report,
according to the Mineral Management Service (MMS) latest report on
damage from the storm. (The report reflects responses from 17 companies
as of 12:30 p.m. New York time.)

-   Daily natural-gas output was down 594.3 million cubic feet from
    normal, equivalent to 4.83% of the daily production of gas in the
    GOM, which is approximately 12.3 BCFPD.  The 594.29 MMCF per day
    that is currently shut-in is approximately 0.98% of the 60.184 BCF
    consumed in the U.S. each day.

-   The cumulative shut-in gas production 9/11/04-12/13/04 is 138.288
    BCF, which is equivalent to 3.108% of the yearly production of gas
    in the GOM which is approximately 4.45 TCF.

<http://www.mms.gov/ooc/press/2004/press1213.htm>

**Lehman Brothers Predicts Canadian Gas Exports Will Rise 2.5% in
\'04**\
High natural gas prices have allowed Canadian producers to drill smaller
prospects and to target unconventional resources that used to be
considered uneconomic, resulting in a reversal of the production
declines last year. Analyst Thomas Driscoll of Lehman Brothers is
predicting a 1.5% increase in Canadian natural gas production this year,
\"a vast improvement from the decline of nearly 3.5% experienced in
2003.\"\
<http://intelligencepress.com/freetrial.epl>

**Other News**

**Surry spent fuel storage facility granted license renewal**

The Nuclear Regulatory Commission (NRC) approved a 40-year license
renewal for the Surry dry cask storage facility for spent fuel. This is
the first license renewal granted by the NRC to an independent spent
fuel storage installation (Isfsi). Surry\'s current license, granted in
1986, expires next year. In approving the new license, NRC commissioners
agreed to exempt Dominion Generation\'s Surry Isfsi from current
regulations, which specify a 20-year license term. The commission also
directed the staff to grant a similar exemption to Progress Energy for
the Robinson-2 license renewal application now under NRC review. The
commission also told the staff to explore a potential rulemaking that
would extend the current license term for an Isfsi to 40 years

Platts December 8, 2004

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (12       | Ago**     | Ago**      |
|                               | /13/04)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 41.06     | 42.96     | 33.17      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 6.89      | 6.05      | 6.63       |
|                               |           |           |            |
| **Henry Hub**                 |           |           |            |
|                               |           |           |            |
| \$/Million Btu                |           |           |            |
+-------------------------------+-----------+-----------+------------+

> Source: Reuters

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

[*http://tonto.eia.doe.gov/oog/info/twip/twip.asp*](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*](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*](http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp)

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