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

**Office of Electricity Delivery and\
Energy Reliability**

**ENERGY ASSURANCE DAILY**

**August 30, 2005**

## Highlights/Major Developments

**Update: Hurricane Katrina**

OFFICE OF ELECTRICITY DELIVERY AND ENERGY RELIABILITY (OE)

U.S. DEPARTMENT OF ENERGY

Hurricane Katrina Situation Report #11

**August 30, 2005 (4:00 PM EDT)**

######### HIGHLIGHTS

Some 2.6 million customers have reported outages due to Hurricane
Katrina in Louisiana, Mississippi, Alabama, Florida, and Georgia (see
table below). Louisiana reports approximately 890,300 customers without
power. Mississippi has about 909,200 customers without power and Alabama
has approximately 624,400 customers without power.

Extensive flooding is a major issue for electricity restoration. The
size of the hurricane, the extensive physical damage to property and the
number of utilities impacted will significantly slow the speed of
restoration efforts.

Secretary Bodman issued a press release on August 29 noting that should
circumstances warrant, the President can direct that petroleum be
withdrawn from the Strategic Petroleum Reserve and sold to refineries.

OE is currently working with EPA to issue waivers for those States
impacted by Katrina. These waivers would make available to first
responders fuel that is currently restricted due to Clean Air Act
restrictions.

Katrina has been downgraded to a tropical depression with sustained
winds at near 35 mph. Katrina is expected to become extratropical during
the next 12 to 24 hours. The center of the tropical depression is about
25 miles south of Clarksville, Tennessee and is moving toward the
north-northeast near 21 mph. The latest NOAA information on the storm
track is available at: <http://www.nhc.noaa.gov/> and the National
Hurricane Center has made its last public advisory on the storm. The
next tropical depression in the Caribbean had degenerated but is still
being monitored for possible signs of regeneration.

**PETROLEUM AND GAS INFORMATION**

Gulf Intercoastal Waterways are fully open along the Lower Mississippi
and Port Allen Route. Dauphin Island and the Pascagoula Harbor are in
good shape. The Mobile Ship Channel is passable around a mobile offshore
drilling unit that is lodged under the bridge at the north end of Mobile
Harbor. A BP terminal in Mobile was damaged by an adrift vessel. No
problems are anticipated east of Mobile along the Gulf Intercoastal
Waterway. An ocean-going barge is aground near Belle Chasse, LA.

According to the U.S. Coast Guard, the Calcasieu Ship Channel was closed
Sunday evening as a precaution. Although Hurricane Katrina did not pass
over the channel, high winds associated with the storm lead officials to
keep it closed until 6:08 am Tuesday morning. One inbound ship and two
outbound vessels were waiting when the channel reopened. Tankers
typically move crude oil, gasoline, LNG, chemicals, aggregate, bulk
agricultural, and bulk pet-coke through this narrow channel. The
channel, which connects Lake Charles with the Gulf of Mexico, is one of
the busiest ports in the country \-- 11th largest based on tonnage.

According to press reports, the Louisiana Offshore Oil Port did NOT
suffer major damage as a result of Hurricane Katrina. Both offshore and
onshore LOOP operations remain suspended, however, until power is
restored. Also, Port Fourchon, the Louisiana port that handles 18% of
domestic oil and gas and 13% of imports, has suffered extensive damage.
Floodwaters have cut off access to the port.

According to MMS, shut-in [oil production]{.underline} is at 1,427,969
barrels per day.  This production is equivalent to 95% of the daily oil
production in the Gulf of Mexico, which is usually approximately 1.5
million barrels per day.  Shut-in [gas production]{.underline} is
currently at 8,798 billion cubic feet per day, equivalent to 88% of
daily gas production in the Gulf of Mexico.

The Strategic Petroleum Reserve at New Orleans Elmwood complex remains
shut down. Bayou Choctaw, Bryan Mound, Big Hill and West Hackberry
sites, however, are operational.

Colonial and Plantation petroleum product pipelines, which provide the
majority of gasoline, diesel fuel, and jet fuel to the Southeast,
Mid-Atlantic, and Northeast states, are currently not operating due to
loss of power at key pump stations in LA and MS.

The LA Public Service Commission is working with the power companies to
assess the situation and provide guidance on priorities. FEMA Region IV
is also working with the Mississippi Emergency Operations Center on the
same issues

The pump stations which lost power on the Colonial Pipeline are as
follows:

  ----------------------------------------- ------------------------------
  **Pump Station**                          **Status**

  Baton Rouge, LA                           Restored

  Felixville, LA                            Restored

  McComb, MS                                Out of Service

  Columbia, MS                              Out of Service

  Collins Delivery, MS                      Out of Service

  Collins Injection, MS                     Out of Service

  Kola, MS                                  Out of Service
  ----------------------------------------- ------------------------------

Colonial pipeline is currently looking to secure generators to power the
remaining out-of-service pump stations until power can be restored by
the utility.

The pump stations which lost power on the Plantation Pipeline are as
follows:

  ----------------------------------------- ------------------------------
  **Pump Station**                          **Status**

  Collins, MS (also applies to Colonial)    Out of Service

  Osyka, MS                                 Out of Service

  Dock station, Baton Rouge                 Out of Service

  Meridian, MS                              Out of Service

  Pascagoula, MS                            Out of Service

  McClain, MS                               Out of Service

  Hathorn, MS                               Out of Service

  Fluker, MS                                Out of Service
  ----------------------------------------- ------------------------------

> Dixie pipeline (a propane line) is also shut down. Other product
> pipelines are not experiencing any problems: TEPPCO is moving products
> from Texas into the Northeast and Centennial is moving products from
> Texas into Illinois.
>
> Capline, a crude oil pipeline serving the Midwest, is shut down.
>
> The following table displays refineries located in states impacted by
> Hurricane Katrina:

**Refineries Located in States Impacted by Hurricane Katrina**

  --------------------- ------------- ------------ -------------- -----------------------
  **COMPANY_NAME**      **STATE**     **SITE**     **Bbl/day      **Status**
                                                   (calendar)**   

  Shell Chemical        Alabama       Saarland     80,000         Not available

  Citgo Petroleum Corp. Louisiana     Lake Charles 324,300        Loss of supply from
  \*                                                              Calcasieu Channel
                                                                  closing. May reduce
                                                                  runs tomorrow

  ConocoPhillips \*     Louisiana     Belle Chasse 247,000        Shutdown; expect water
                                                                  damage

  ConocoPhillips \*     Louisiana     Lake Charles 239,400        Loss of supply from
                                                                  Calcasieu channel
                                                                  closing

  Chalmette Refining    Louisiana     Chalmette    187,200        Shutdown; expect water
  LLC                                                             damage

  ExxonMobil Refining & Louisiana     Baton Rouge  493,500        Was at reduced runs for
  Supply Co. \*                                                   a short time; back to
                                                                  normal operations.

  Marathon Ashland      Louisiana     Garyville    245,000        Shutdown
  Petroleum LLC.                                                  

  Murphy Oil USA Inc.   Louisiana     Meraux       120,000        Shutdown -- expect
                                                                  water damage

  Motiva Enterprises    Louisiana     Convent      235,000        Shutdown
  LLC                                                             

  Motiva Enterprises    Louisiana     Norco        226,500        Shutdown
  LLC                                                             

  Placid Oil \*         Louisiana     Port Allen   48,500         Shutdown -- plant on
                                                                  warm circulation

  Valero Refining Co. - Louisiana     Krotz        80,000         Reduced runs
  Louisiana                           Springs                     

  Valero Saint Charles  Louisiana     Norco        185,000        Shutdown -- out 1 or 2
  Refinery                                                        weeks

  Chevron USA Inc. \*   Mississippi   Pascagoula   325,000        Shutdown

  Premcor               Tennessee     Memphis      180,000        Loss of Capline supply;
                                                                  Reduced runs

  Koch \*               Texas         Corpus       156,000        None
                                      Christi                     

  Total \*              Texas         Port Arthur  285,000        Loss of supply; Reduced
                                                                  runs
  --------------------- ------------- ------------ -------------- -----------------------

\* Refineries with company owned and operated on-site power generation.

**[ELECTRICITY INFORMATION]{.underline}**

### STATE OUTAGE DATA (8/30/05 3:00 PM)

+-----------------+-----------------+-----------------+-----------------+
| **Utility**     | **Customers**   | **Total         | **% Customers   |
|                 |                 | Customers**     | w/o Power from  |
|                 | **w/o Power**   |                 | Katrina**       |
+-----------------+-----------------+-----------------+-----------------+
| Alabama         | 624,427         | 2,339,004       | 27%             |
+-----------------+-----------------+-----------------+-----------------+
| Florida         | 194,856         | 9,075,577       | 2%              |
+-----------------+-----------------+-----------------+-----------------+
| Georgia         | 12,500          | 4,156,052       | \<1%            |
+-----------------+-----------------+-----------------+-----------------+
| Louisiana       | 890,294         | 2,130,925       | 42%             |
+-----------------+-----------------+-----------------+-----------------+
| Mississippi     | 909,173         | 1,420,571       | 64%             |
+-----------------+-----------------+-----------------+-----------------+
| **Total**       | **2,631,250**   | **19,122,129**  | **14%**         |
+-----------------+-----------------+-----------------+-----------------+

**[STATE REPORTS]{.underline}**

######### Alabama

Approximately 624,427 customers (as of 2:30 PM 8/30/05) are without
power in Alabama due to Katrina. Of these, 476,606 are in the Alabama
Power service area. In addition, 102,821 Co-op customers have reported
outages and 45,000 Municipal customers have reported outages. Alabama
Power Company reports that early indications are that Hurricane Katrina
has caused extensive damage to the Alabama Power system including the
company's transmission system and other infrastructure, and customers
should expect extended outages. Katrina is the second-worst storm in
Alabama Power history in terms of outages, leaving 636,891 customers
without power at its peak. Company officials anticipate that restoration
efforts may take far longer than those following Hurricane Ivan, which
left more than 825,000 customers without power in 2004. Ivan restoration
took eight days. Company emergency crews worked through the night.
Damage assessment teams were out at first light today. The company hopes
to have a full assessment of the damage later today. Alabama Power has
commitments from outside utilities to support our restoration efforts.
However, resources are limited and are also needed in hard hit areas in
Mississippi and Louisiana.

Mississippi and Louisiana

Approximately 909,200 (as of 2:30 PM 8/30/05) customers are without
power in Mississippi due to Katrina. Of these, 287,234 are in the
Entergy service area, 196,000 are in the Mississippi Power service area,
and 425, 939 are in the Mississippi Electric Power Association service
area. Mississippi Power will begin the rebuilding process today to
restore service to its customers. All of the company's 195,000 customers
are without power in the aftermath of Hurricane Katrina. According to
the president and CEO of Mississippi Power the company "has suffered the
worst catastrophe in our company's history." The company expects later
today to have an initial assessment of the extent of time necessary to
restore electric service to customers." Thousands of additional
personnel are poised and ready to assist our employees in beginning the
work of rebuilding our electric system." Initial assessments to
determine the extent of destruction began Tuesday at daybreak, and to
support restoration efforts, more than 2,000 additional workers from
outside the company have begun to arrive.

Louisiana Public Service Commission reports approximately 890,300
customers, or 42% of customers in the state, are without power (as of
2:00 PM 8/30/05).

Louisiana Outages by Major Utility (8/30/05 2:00 PM)

  ----------------------------- -------------- -------------- -------------
  **Electric Utility**          **Customers    **Number of    **% customers
                                w/o Power**    Consumers      w/o power**
                                               (1)**          

  Entergy Louisiana Inc         420,711        653,929        64%

  Entergy Gulf States Inc       97,376         342,443        28%

  Cleco Power LLC               80,810         257,299        31%

  Entergy New Orleans Inc       201,369        215,163        94%

  Dixie Electric Membership     56,056         85,307         66%
  Corp                                                        

  Washington-St Tammany E C,    20,000         41,304         48%
  Inc                                                         

  South Louisiana Elec Coop     13,912         19,180         72%
  Assn                                                        

  City of Morgan                60             6,000          \<1%
  ----------------------------- -------------- -------------- -------------

Entergy (Louisiana and Mississippi) has told its customers that they
will experience extended power outages and that the severe damage caused
by Hurricane Katrina to Entergy's system will require weeks to rebuild.
Flooding, blocked access or other obstacles will hamper restoration.

The Waterford III Nuclear Power plant sustained no damage except to
building off site. Post disaster preparations are being initiated by
FEMA and the NRC to clear the facility for a restart.

######### Florida

Approximately 194,900 customers, 2 percent of customers in the state,
remain without power in Florida due to Katrina. This includes 136,300
Florida Power & Light customers, 57,491 Gulf Power customers, and 1,065
Cooperative customers. FPL has reported its goal of restoring power to
90 percent of its customers by tonight has bee achieved. FPL fully
expects to restore all of Broward County customers by Thursday night,
and all of Miami-Dade by Friday night.

Gulf Power estimates that power will be restored to all customers by
Wednesday evening. Gulf Power plans to send crews to support Mississippi
Power restoration efforts after power has been restored to all their
customers.

The Florida port of Pensacola remains closed due to lack of power.

####### Georgia

Approximately 12,500 customers are without power in Georgia. All of
those without power are Georgia Power customers. Georgia Power has
stated that resources are available for quick restoration

**Additional Information:**

### Gulf of Mexico Shut-in Production MMS release #3328

Based on the latest data available from the Minerals Management Service,
78.75% of 819 manned platforms and 67.16% of 137 rigs currently
operating in the GOM have been evacuated as of 11:30 a.m. August 30.
Shut in oil production is 1,427,969 BOPD or 95.20% of daily production
(which is currently approximately 1.5 million BOPD), and shut-in gas is
8.798 BCFPD or 87.99% of daily production (which is currently
approximately 10.0 BCFPD). The cumulative shut-in oil production for the
period 8/26/05 -- 8/30/05 is 4,635,751 bbls or 0.847% of annual
production. The cumulative shut-in production for the period 8/26/05 --
8/30/05 is 25.441 BCF of 0.423% of annual production

**This survey is reflective of 68 companies' reports as of 11:30 a.m.
Central Time.**

  --------------- ----------- ----------- --------------- ----------- ----------- -----------
  **Districts**   **Lake      **Lake      **Lafayette**   **Houma**   **New       **Total**
                  Jackson**   Charles**                               Orleans**   

  **Platforms     69          134         144             121         177         645
  Evacuated**                                                                     

  **Rigs          4           16          20              26          24          90
  Evacuated**                                                                     

  ** **                                                                            

  **Oil, BOPD     90,072      49,050      237,048         341,194     710,605     1,427,969
  Shut-in**                                                                       

  **Gas, MMCF/D   845.64      1,769.86    1,204.76        2,078.64    2,899.66    8,798.54
  Shut-In**                                                                       
  --------------- ----------- ----------- --------------- ----------- ----------- -----------

Note: \`The cumulative numbers reflect updated production numbers from
all previous reports. The reports only represent input received by 11:30
a.m. CDT. If a company does not report by 11:30 a.m. it is not included
in the special information release, but it is included in the cumulative
shut-in production. This may result in an apparent increase in the
cumulative report amount.

<http://www.mms.gov/ooc/press/2005/press0830.htm>

**New Orleans May be Out of Power for Weeks**

New Orleans Mayor Ray Nagin says 80% of city under water, some as much
as 20 feet deep. Both New Orleans airports are underwater and there
would be no electricity in the city for four to six weeks. Natural gas
leaks have been reported throughout town, he said. There is also
reportedly a leaking oil tanker that has run aground.
[*http://www.cnn.com/2005/WEATHER/08/30/katrina.neworleans/index.html*](http://www.cnn.com/2005/WEATHER/08/30/katrina.neworleans/index.html)

# Florida Officials Urge Citizens to Avoid Unnecessary Driving 

Florida officials said today that there are ample fuel supplies to get
through the busy Labor Day weekend and beyond, but they also are urging
Floridians to avoid any unnecessary driving. Major fuel companies
continue to deliver millions of gallons of gasoline to ports in
Jacksonville, Tampa and Fort Lauderdale. But the Port of Pensacola
remained without power and was closed today, and oil refineries along
the Gulf of Mexico have been shut down because of Hurricane Katrina.

[[http://www.orlandosentinel.com/business/orl-bk-fuel-083005,0,2244165.story?coll=orl-home-headlines&track=rss]{.underline}](http://www.orlandosentinel.com/business/orl-bk-fuel-083005,0,2244165.story?coll=orl-home-headlines&track=rss)

######## Electricity

### Monticello Nuclear Plant Undergoing Full-Scale 3 Day Emergency Drill

A three-day full-scale emergency drill is underway at the Monticello
nuclear generating station in Monticello, Minnesota. The exercise began
on August 29 and will conclude on August 31. Officials from the utility,
Federal and local agencies are participating.

<http://miva.sctimes.com/miva/cgi-bin/miva?Web/page.mv+1+local+592411>

# Update - TXU's Sandow Unit 4 Returning to Service Soon

According to a report by Texas regulators, TXU will restart its 553 MW
Sandow power plant on August 31. The unit was shut on August 29 to
repair a boiler tube leak.

Reuters 7:58, August 30, 2005.

# Palo Verde Ranps up to 98 Percent of Capacity

According to a report from the Nuclear Regulatory Commission, the 1,243
MW Unit 1 at the Palo Verde nuclear generating station in Arizona has
ramped up to 98 percent of capacity as it exits an outage undertaken to
repair an emergency generator.

Reuters 7:30, August 30, 2005.

# Output at Grand Gulf Nuclear Plant Cut to 75 Percent of Capacity

The 1,263 MW Grand Gulf nuclear generating station in Mississippi cut
output to 75 percent of capacity according to the daily report of the
Nuclear Regulatory Commission. There was no indication if the reduction
in output was related to hurricane Katrina

Reuters 7:21, August 30, 2005.

# Dresden Unit 2 Output at 77 Percent of Capacity

Output at the 850 MW unit 2 at the Dresden nuclear generating station in
Illinois dropped to 77 of capacity down from 99 percent reported on
August 29.

Bloomberg 8:02, August 30, 2005.

Reuters 8:06, August 29, 2005

# AES's 225 Gas-fired Unit 3 at its Huntington Beach Plant in California Shut August 30

Reuters 14:41, August 30, 2005.

For additional information on electricity outages related to Hurricane
Katrina, see Highlights/Major Developments

######## Petroleum

**Oil Rigs Adrift**

Two of Shell's oil drilling rigs under contract with Noble Corporation
and Transocean Inc. were reported to be adrift in the Gulf of Mexico
August 29.

<http://today.reuters.co.uk/news/newsArticle.aspx?type=topNews&storyID=2005-08-30T032850Z_01_ROB586049_RTRUKOC_0_UK-WEATHER-KATRINA.xml>

**Production Platform Appears to be Lost**

Newfield Exploration Company announced on August 30 that its \"A\"
production platform, which produced 1,500 bpd at Main Pass 138, appears
to have been lost in the storm of Hurricane Katrina. Newfield is further
assessing damages.

<http://biz.yahoo.com/prnews/050830/datu041.html?.v=23>

**Infrastructure Damage Being Watched on Lake Borgne**

Louisiana\'s Lake Borgne, an oil and natural gas drilling areas in state
waters, could have substantial infrastructure damage resulting from
Hurricane Katrina passing through the middle.

[http://www.platts.com/Natural%20Gas/News/7052262.xml?S=n](http://www.platts.com/Natural Gas/News/7052262.xml?S=n)

# Venezuelan Oil Minister: OPEC Has No Spare Capacity - Cannot Raise Output 

On August 29, the Venezuelan Oil Minister said that OPEC is producing at
maximum rates and does not have the ability to increase output beyond
current levels.

Reuters 18:34, August 29, 2005.

# Update - Petroecuador Production Recovering More Quickly Than Originally Estimated

Restoration of full production for Petroecuador is now estimated to be
complete by around October 7, several weeks earlier than originally
estimated. At this time, there is no information as to when export
volume will be restored.

Reuters 12:47, August 30, 2005.

For additional information on petroleum, see Highlights/Major
Developments

**Natural Gas**

**Pre-filing Procedures Proposed for New LNG Terminals**

In accordance with the recently enacted Energy Policy Act of 2005, the
Federal Energy Regulatory Commission (FERC) has proposed rules to
require potential developers of new liquefied natural gas (LNG)
terminals to initiate pre-filing procedures at least six months prior to
filing a formal application. The Commission intends to issue a final
rule by October 7, 2005.\
<http://www.ferc.gov/press-room/pr-current/08-29-05.asp>

[*http://intelligencepress.com/*](http://intelligencepress.com/)

For additional information on natural gas, see Highlights/Major
Developments

######## Other News

### Survey Results: Utility Systems Likely Targets from Outside Threats 

The results of a survey of utility industry IT executives commissioned
by Trusted Network Technologies indicates that one third of the
respondents believe that their control systems or energy delivery
systems will be the target of some outside threat within the next two
years. In addition, some 20 percent of the respondents indicated that
their systems had already been targeted.

<http://www.trustednetworktech.com/documents/utilsurveyannouncement8.24.05.pdf>

######## Energy Prices 

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (08       | Ago**     | Ago**      |
|                               | /30/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 66.91     | 65.72     | 42.32      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 12.36     | 9.96      | 5.05       |
|                               |           |           |            |
| **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

**ENSEC threat awareness blog site** from Energy Assurance

[*http://ensec.blogspot.com*](http://ensec.blogspot.com/)