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

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

**January 19, 2005**

**Electricity\
**

# Lights Back On For Peninsula, San Francisco Residents 

The lights are back for all of the 25,000 customers impacted by
Wednesday morning power outages along the Peninsula and in San
Francisco. Residents in Millbrae, San Bruno, Burlingame and Pacificia
lost power at about 8 a.m. Customers in Pacifica had power restored just
after 9 a.m. after PG&E re-routed the transmission of power through
alternate lines. Electricty was restored for some San Bruno customers by
about 10 a.m. The remaining customers saw their lights come back on at
12:15 p.m., according to a PG&E spokesman.\
<http://www.foxreno.com/news/4108050/detail.html>

# CMS Energy\'s Palisades Reactor in Michigan Resuming Production

CMS Energy Corp.\'s 730-megawatt Palisades 1 nuclear reactor in
southeastern Michigan was reconnected to the grid this morning after
shutting down Jan. 9 for repair of a condenser system.

Bloomberg News, 0053 January 19, 2005

**Hydro Power Up in Northwest with Abundant Rainfall**

Falling loads linked to mild weather, increasing hydropower output and
weakness in the natural gas market combined to drive spot power prices
lower in the U.S. West on Wednesday, dealers said. \"It is quite warm
and we are being pounded with rain,\" one Northwest dealer said. Some
hydropower facilities in coastal areas were running flat out following
the heavy rains, although the larger inland hydropower dams did

not receive enough precipitation to result in a significant pick-up in
output, dealers said.\
Reuters, 1426 January 19, 2005

# AES's 485 MW Gas-fired Alamitos 5 Unit in CA Shut Jan 19

Reuters, 1426 January 19, 2005

# Reliant's 741 MW Gas-fired Ormond Beach 1 Unit in CA Shut Jan 19

Reuters, 1426 January 19, 2005

# Duke's Catawba 1 Nuke Returned to Full Power

In South Carolina, Duke\'s Catawba 1 nuke returned to full power by
early Wednesday, up from 61 percent on Tuesday. Duke reduced the unit on
Jan. 12 to fix a seal leak in a feedwater pump.\
Reuters, 1338 January 19, 2005

# Exxon Baytown Restarts Compressor - Regulator

Exxon Mobil Corp. restarted a wet gas compressor on fluidic catalytic
cracking unit No. 2 at the company\'s 557,000 barrel per day (bpd)
refinery in Baytown, Texas, on Wednesday, according to a filing with
Texas environmental regulators. The compressor was shut for about 30
minutes before being restarted early on Wednesday morning, according to
the filing with the Texas Commission on Environmental Quality. Reuters,
1331 January 19, 2005

**Petroleum\
\
Fire Reported at Kern Oil Bakersfield Refinery\
**Trading sources told the Oil Price Information Service (OPIS) that a
fire at the 26,000 b/d Kern Oil\
Bakersfield refinery this morning has already been put out.\
OPIS Price Watch Alert, 1419 January 19 2005

**Flint Hills Plans restart of 300,000 bpd Corpus FCC Refinery Unit**

OPIS Price Watch Alert, 1232 January 19, 2005

**Tesoro Golden Eagle FCC Still Down Due to Balky Boiler: Official**

A fluid catalytic cracker at Tesoro\'s 168,000 b/d Golden Eagle refinery
in Martinez, California, remained idled Tuesday because of ongoing
complications with the plant\'s #5 boiler that was shut late last week,
an environmental specialist with the Contra Costa County Health
Department told Platts. The official said the problematic boiler was the
same unit Tesoro shut for unplanned repairs after experiencing
mechanical problem last July. \"It\'s curious that it broke this quickly
after a major rebuild,\" the official said, adding that refinery
officials were \"supposed to go and take a look\" at the #5 boiler over
the weekend. Crude rates last week were reduced by 25% because of

the shut FCC, the official said. Tesoro\'s FCC capacity at Golden Eagle
is about 68,000 b/d. Meanwhile, a 32,000 b/d hydrocracker and a reformer
at Golden Eagle remained down for planned maintenance, the county
official said, although the units were believed scheduled to restart
\"later this month or next,\" he said. A refinery spokeswoman could not
be reached for comment. <http://www.platts.com/Oil/News/6996150.xml?S=n>

**Statoil Seeks to Resume Full Production**\
Statoil ASA on Wednesday sought government permission to resume its full
205,000 barrel a day production from two offshore oil fields that were
shut down in November after a natural gas leak. The Norwegian Petroleum
Safety Authority, or PSA, last week allowed the state-controlled oil
company to start production from parts of the Snorre A and Vigdis fields
not affected by the leak. The shutdown resulted in a roughly 6.4 percent
reduction in the 3.2 million barrel per day production capacity that
makes Norway the world\'s third largest oil exporter, after Saudi Arabia
and Russia. Work on restarting those wells began Friday, and was slowly
building up to 100,000 barrel-per-day capacity. Statoil spokeswoman
Kjersti Morstoel said the company had requested permission to resume the
remaining 105,000 barrel per day production from the rest of the area.\
<http://biz.yahoo.com/ap/050119/norway_statoil_2.html>\
\
**Sabotage Attack on N. Iraq Pipeline Again\
**A sabotage attack on Iraq\'s northern pipeline is expected to keep oil
exports through Turkey at a standstill for another two-three weeks, an
oil official said on Wednesday. A bomb blew off a section of the
Iraq-Turkey pipeline in the Fatha area near Baiji on Monday, soon after
crews had finished repairing damage to the line in the same area from a
previous blast, the official said. \"We don\'t see hope of resuming
northern exports for another 15-20 days,\" said the official, who is
familiar with repairs to the line.\
Reuters, January 19, 2005

**Iraq\'s South Oil Terminals to Resume Shipping Operations Today\
**Iraq\'s oil-export terminals in the Persian Gulf are set to resume
shipping operations later today, after closing Sunday because rough seas
prevented tankers from docking, three shipping agents said. Loadings
were unaffected.\
Bloomberg News, 0334 January 19, 2005\
\
\
**Natural Gas**

# ConocoPhillips Seeks LNG Terminal Permit** ConocoPhillips is seeking U.S. Coast Guard approval to build a liquefied natural gas terminal in the Gulf of Mexico as part of its effort to meet global gas demand, the company said Wednesday.** The proposed terminal would be located 56 miles south of Louisiana\'s coast with a throughput capacity of 1.5 billion cubic feet a day, said the Houston-based integrated oil company. Construction could begin late next year and would take about four years to complete. The first delivery of LNG to the offshore terminal could take place in 2010, ConocoPhillips said. [**http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7B86895775%2D9FC1%2D4EF9%2DBB89%2D27A1B0A03ADF%7D**](http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid={86895775-9FC1-4EF9-BB89-27A1B0A03ADF})

**FERC OKs Questar Natural Gas Pipeline Project**

The Federal Energy Regulatory Commission on Wednesday approved Questar
Pipeline Co.\'s \$54.6 million expansion of its natural gas pipeline
system in northeastern Utah and northwestern Colorado. The company\'s
Southern System Expansion Project would transport an additional 100
million cubic feet of gas a day. Customers of the gas include power
plant operators who fuel their facilities with gas. The project includes
about 19 miles of new pipeline in Carbon County, Utah and several new
compressor stations to pull the additional gas.\
Reuters, 1116 January 19, 2005

**Other News**

**Barges Stuck at Ohio Dam Halt Shipping\
**Ohio River traffic was halted along a 42-mile stretch Wednesday after
water levels fell to critical lows behind a lock and dam that was jammed
by the wreckage of a barge accident. Salvage crews worked at the
Belleville (W.Va.) Lock and Dam to remove twisted barges from control
gates that were stuck in the open position. The jammed gates are keeping
the U.S. Army Corps of Engineers from controlling the water levels from
Belleville to the Willow Island Lock and Dam above Parkersburg, W.Va.
Traffic along the stretch of river had already been limited before the
falling water level halted it altogether early Wednesday. The river
level, as measured at the lock, dropped to 6 feet at 2 a.m. Wednesday,
said lock master Danny Marcinko. By 7 a.m., the water was at 5.7 feet.
The normal level is 12 feet. The coal barges were among nine barges that
broke loose after the vessel Jon J. Strong went through the dam on Jan.
6 during flooding along the river. The force of the water twisted three
of the 175-foot steel barges into horseshoe shapes around the dam\'s
gate piers and sank a fourth. The other barges were recovered.
<http://www.newsday.com/news/nationworld/wire/sns-ap-sunken-barges,0,829503.story?coll=sns-ap-nationworld-headlines>

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (1        | Ago**     | Ago**      |
|                               | /19/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 47.61     | 46.46     | 35.16      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 6.19      | 5.89      | 5.43       |
|                               |           |           |            |
| **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