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

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

**September 20, 2004**

**Highlights/Major Developments**

**Hurricane Update from The Office of Energy Assurance Situation
Report**

To read Office of Energy Assurance's (OEA) latest Hurricane Situation
Reports click the following link. Some highlights from the latest report
are included in this report.

<http://www.ea.doe.gov/pdfs/hurrivan_sitrept_092004_1600.pdf>

**HIGHLIGHTS**

-   Hurricane Ivan Situation Report #7, as of 4PM September 20, 2004,
    approximately 501,573 customers in three states are without
    electricity. The majority of the outages remain in Alabama and
    Florida. No restoration estimate is yet available for Florida and
    Alabama outages, but restoration should be essentially completed by
    midnight 9/24. (See chart below)

-   EA continues to monitor Tropical Storm Jeanne, which may impact the
    U.S. Eastern Seaboard. As of 11:00 AM EDT 9/20 Tropical Storm
    Jeanne\'s maximum sustained winds have strengthened to an estimated
    65 mph. Jeanne is moving to north-northeast at nearly 7 mph. The
    center of Jeanne was located about 345 miles east of Great Aboco
    Island. Jeanne is expected to turn to the northeast over the next 24
    hours. An image of the current storm path is available at:\
    <http://www.nhc.noaa.gov/ftp/graphics/AT11/refresh/AL1104W5+GIF/190858W5.gif>

-   

**ELECTRICITY INFORMATION**

### **STATE OUTAGE DATA** 

+--------------+------------+--------------+--------------------------+
| **Utility**  | **C        | **Total      | **% Customers w/o Power  |
|              | ustomers** | Customers**  | from Ivan**              |
|              |            |              |                          |
|              | **w/o      |              |                          |
|              | Power**    |              |                          |
+--------------+------------+--------------+--------------------------+
| Florida      | 188,448    | 8,877,905    | 2%                       |
+--------------+------------+--------------+--------------------------+
| Alabama      | 277,725    | 2,317,229    | 12%                      |
+--------------+------------+--------------+--------------------------+
| North        | 35,400     | 4,315,789    | \<1%                     |
| Carolina     |            |              |                          |
+--------------+------------+--------------+--------------------------+
| **Total**    | *          | **           | **3.2%**                 |
|              | *501,573** | 15,510,923** |                          |
+--------------+------------+--------------+--------------------------+

## Source: Total Customers -- EIA Electric Sales and Revenue 2002 and Florida EOC. Sources for Alabama, Florida, and North Carolina are from the State Emergency Operations Centers. 

#######  

####### **State Outage Information** 

1.  • **Florida -** Gulf Power has completed restoration of service for
    its customers in Bay, Holmes, Jackson and Washington counties. The
    company reports that of the 87 substations that were knocked off
    line by Ivan, 12 remain without power. Of the 790 miles of
    transmission line that were knocked out of service, only 100 miles
    remain. The company's goal for Monday 9/20 is to get all
    transmission lines and substations energized.

    • **Florida County Outage Data --**

Data shown in the Table are as of 9/20/04 11:00AM EDT)

+-----------+------------+------------------+-------------------------+
| *         | **C        | **Total          | **% Customers w/o       |
| *County** | ustomers** | Customers**      | Power**                 |
|           |            |                  |                         |
|           | **w/o      |                  |                         |
|           | Power**    |                  |                         |
+-----------+------------+------------------+-------------------------+
| Bay       | 3,099      | 98,755           | 3%                      |
+-----------+------------+------------------+-------------------------+
| Escambia  | 94,998     | 154,995          | 64%                     |
+-----------+------------+------------------+-------------------------+
| Holmes    | 753        | 10,150           | 7%                      |
+-----------+------------+------------------+-------------------------+
| Okaloosa  | 44,715     | 99,980           | 45%                     |
+-----------+------------+------------------+-------------------------+
| Santa     | 38,701     | 61,692           | 57%                     |
| Rosa      |            |                  |                         |
+-----------+------------+------------------+-------------------------+
| Walton    | 5,477      | 40,798           | 13%                     |
+-----------+------------+------------------+-------------------------+

-   **Alabama** -- Currently 277,726 Alabama electricity customers are
    without power including 184,332 customers of Alabama Power and
    93,294 customers of cooperatives. TVA has restored essentially all
    of its customers. Alabama Power provided the following restoration
    targets for its customers: Birmingham 9/21, Eastern 9/21, Montgomery
    9/23, Southeast 9/19, Tuscaloosa 9/21, and Mobile 9/24.

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-   **North Carolina** -- Duke Power reports 21,600 customers remain
    without power and expect complete restoration by midnight, 9/22.
    Cooperatives are no longer reporting outages as over 95% of
    customers have been restored. Progress Energy reports outages of
    13,800 and expects complete restoration by midnight 9/21.

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-   **Puerto Rico** -- No update on outages is available; as of 9/19, at
    least 403,000 of the 1.6 million PREPA customers have had their
    power restored. FEMA and DOE are conceptualizing a study of the
    Puerto Rico grid to learn the sources of the grid problems there and
    any applicable lessons learned.

**OIL AND GAS INFORMATION**

**Status of Refineries Following Hurricane Ivan (9/20/04)**

  ------------ --------------- ------------- ---------------------------------
  **\          **\             **Capacity\   **\
  Refiner**    Location**      (bbl/day)**   Status**

  Shell Oil    Saraland, AL    85,000        Remains shut down

  Chevron\*    Pascagoula, MS  325,000       Remains shut down

  Motiva       Convent, LA     235,000       Running at 160,000 b/d

  Motiva       Norco, LA       226,500       Running at 150,000 b/d

  Valero       St. Charles, LA 155,000       Resuming full operations by
  (Orion)                                    September 20

  Valero       Krotz Springs,  78,000        Will restart tomorrow at reduced
               LA                            runs
  ------------ --------------- ------------- ---------------------------------

Note: Most refineries (reported in Friday's afternoon situation report)
have resumed normal operations; however, some refineries have reduced
runs while awaiting crude oil shipments.

\*Chevron has reported that its marketing terminal in Pascagoula is
open.

**FL Fuel Status** The Florida Panhandle area reports tight supplies
since some ports and terminals remain closed. Marketers are currently
obtaining product from Mobile and Birmingham, Alabama, as well as
Bainbridge, Georgia. Other parts of FL report that supply situation has
improved and should be back to normal by end of this week.

**Crude Oil and Gas Production**: Over the weekend, companies began
sending essential production and drilling personnel to offshore
platforms in the Gulf of Mexico. Some areas are in full production while
others are in a ramp-up process. According to the Department of
Interior's Mining and Mineral Service, the latest information shows 0.69
million barrels a day of crude oil as shut-in. This is equivalent to 41
percent of daily crude oil production in the Gulf. Shut-in gas
production remains at approximately 2.8 BCFPD or roughly 23.5 percent of
daily natural gas production.

(For details see the MMS Internet site:
<http://www.mms.gov/ooc/press/2004/press0920b.htm>)

**Port Status**

-   New Orleans, LA - Lower Mississippi River is open with nighttime
    restrictions

-   MS River Gulf Outlet (MRGO) is closed, which affects deep draft
    cargo operations

-   Intercoastal Waterway is open from New Orleans to Gulfport.

-   Gulfport, MS -Port open with draft restrictions to 33 ft.

-   Pascagoula, MS -Port open with draft restrictions to 38 ft.

-   Intercoastal waterway from mile 104 (Pascagoula) to mile 351
    (Apalachiola) is closed

-   Mobile, AL - Port open with draft restrictions to 40 ft. Pensacola,
    FL - Port closed

-   Panama City, FL - Port closed

**Natural Gas Pipelines Status Following Hurricane Ivan (9/20/04)**

**Natural Gas Pipelines Status Following Hurricane Ivan (9/20/04)**

  ------------------ ---------------- --------------------------------------------
  **\                **Supply         **\
  Pipeline Company** Interruption**   Status**

  Florida Gas        NA               Utilization of FGT capacity is at maximum.
  Transmission                        Market Area temperatures are forecasted to
                                      be around 90 degrees; therefore, for the gas
                                      day of September 20th, 2004, FGT alerted
                                      their customers in FGTs market area to
                                      adhere to their allocations.

  Gulfstream Natural NA               Significant supply interruptions in
  Gas                                 Mississippi and Alabama are limiting
                                      pipeline capacity. At this time and until
                                      Gulfstream determines it is otherwise
                                      operationally feasible, the pipeline will
                                      schedule limited deliveries from confirmed
                                      receipts of gas into the system, and gas
                                      already in the system.

  Natural Gas        NA               Limited capacity is available for eastbound
  Pipeline (Kinder                    transport volumes from the Louisiana zone
  Morgan)                             going eastbound.

  Southern Natural   NA               Damage surveys are continuing in the Main
  Gas Company                         Pass area. Repairs and clean up are
                                      continuing at compressor stations, with
                                      several receipt points still under force
                                      majeure.

  Tennessee Gas      NA               Working on repairing damaged lines from
  Pipeline                            Hurricane Ivan, and a force majeure event
                                      will continue until further notice in the
                                      South Pass area.

  Texas Eastern      NA               Texas Eastern will not accept nominations
  Transmission                        from any meter on the South Pass system, the
                                      VGS processing plant, which was impacted by
                                      Hurricane Ivan, resumes processing
                                      operations.

  Williams Gas       NA               Transco continues to expect the production
  Pipeline/TRANSCO                    area supply to return to normal levels over
                                      the next few days. Transco has returned to
                                      its normal scheduling procedures.
  ------------------ ---------------- --------------------------------------------

Information obtained from Company web sites

There are also many press reports on Hurricane Ivan and related news.
Here are links to some of them. The information reported in the Energy
Assurance Daily above does not come from press reports, but comes from
information collected from the Florida State Emergency Operations Center
and by other Federal, State and local officials monitoring and
coordinating response and restoration efforts.

# ChevronTexaco Miss. refinery terminal reopens

Reuters, September 20, 2004, 11:26.

# US refinery shutdowns

Reuters, September 20, 2004, 12:32.

# Progress Energy says 20,800 still without power

Reuters, September 19, 2004, 18:06.

# EPA waives Atlanta clean-gasoline rules due to Ivan

Reuters, September 20, 2004, 11:26.

**Electricity**

**See Highlights / Major Developments for details (and links to
additional articles) on outages related to Hurricane Frances.**

# 

**Reliant Energy Power Plant in Seward, PA to be Dedicated**

A massive \$800 million Reliant Energy power plant that echoes the state
effort to use waste coal will be dedicated at 11 a.m. Sept. 30. The
520-megawatt power plant \-- the largest of its type in the world \--
already is in partial operation. Demolition of the 82-year-old plant it
replaces is under way and will continue into next year. When in full
operation, the Seward plant will use about 11,000 tons of waste coal a
day. The state Department of Environmental Protection estimates there is
at least 258 million tons of waste coal throughout Pennsylvania.
<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5127000>

[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp%5EZjqrlggoYTnk%27%40%3E%20bfej%5Bv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp^ZjqrlggoYTnk'@> bfej%5Bv)
<http://www.platts.com/Oil/headlines.jsp>

**Rainstorms From Ivan Help TVA Generate More Hydroelectricity**

The high winds, rains and tornadoes spawned by Hurricane Ivan threatened
to down some power lines in the Tennessee Valley, but the storm also is
bringing the region plenty of its cheapest power source.

The Tennessee Valley Authority is operating all of its 29 hydroelectric
power generating stations around the clock as preparation for and
response to heavy rains in the region. As a result, the agency is
generating twice as much hydroelectricity as normal this week, officials
said. \"We expect about 80,000 megawatt hours of production a day, which
is nearly twice what we usually get from our hydro units each day,\" TVA
spokesman Gil Francis said. \"We\'ve got a lot of water we\'re trying to
move through our system, so we\'re running most of these units 24 hours
a day rather than just at the peak demand periods.\"

Runoff from the rain into TVA\'s reservoirs supplies the federal utility
with a no-cost \"fuel\" source for power generating units at 29 of its
dams. TVA officials, who jokingly refer to rain as \"hydro refilling,\"
garnered about 12 percent of all electricity in the Tennessee Valley
from hydro dams last year. But while TVA may benefit from cheaper fuel
from the rains, the storm could be costly for its power distributors,
such as EPB of Chattanooga. Hurricane Ivan is following a path similar
to that of Hurricane Opal, which in 1995 downed 59 EPB poles and left
more than 60,000 customers without electricity. Opal, the third worst
storm ever for EPB, cost the city-owned utility about \$1.4 million, EPB
officials said. \"This storm is comparable with Opal, but we\'re hoping
it is not as destructive,\" said Don Nanney, an EPB senior manager.

Mr. Nanney said EPB crews were staying on the job throughout the night
Thursday to respond to potential outages.

<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5127268>

**Bangor Hydro Reveals New Power Plan**

By 2006, 345 kilovolts of electricity could be crackling through new
power lines in wooded Down East Maine, carrying power to a potentially
lucrative Canadian market. Friday, Bangor Hydro-Electric Co. announced
its plans to build a new \$90.4 million electricity transmission line
through portions of Hancock, Penobscot and Washington counties, its most
recent attempt in a decades-long effort to link the New England and
Canadian power grids. The 85-mile route revealed Friday would parallel
existing industrial development for 96 percent of its journey, said Gil
Paquette, a consultant from Devine Tarbell & Associates Inc. in Portland
who is project manager for the line. Atlantic Canada\'s power use peaks
during the winter with the use of electric space heaters, while New
England has its highest power demand during the summer air-conditioning
season, said Maine director Beth Nagusky, whose Office of Energy
Independence and Security supports the project. \"It\'s a good
synergy,\" Nagusky said Friday.

<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5128235>

## Indian Point 2 Nuke at Full Power Following Repair

Unit 2 of the Indian Point nuclear generating station returned to full
production following repairs to a blocked steam valve. The 970 MW
facility located in Buchanan, New York, is owned by Entergy Corp.

## Salem 2 Nuclear Power Plant at 98% Following Repair

Unit 2 of the Salem nuclear generating station increased production to
98 percent following repairs to the main generator. The 1,150 MW
facility located in Hancocks Bridge, New Jersey, is owned by PSEG
Nuclear.

Bloomberg, September 20, 2004, 10:06

## Watts Bar 1 Nuke Power Plant Shut For Malfunction

Unit 1 of the Watts Bar nuclear generating station was automatically
shut down following the movement of several fuel rods. The 1,170 MW
facility located in Spring City, Tennessee, is owned by the Tennessee
Valley Authority

Bloomberg, September 20, 2004, 10:11.

## Dresden 2 Nuclear Plant Shut Down For Maintenance, Company Says

Unit 2 of the Dresden nuclear generating station was shut down Saturday
to perform unscheduled maintenance on a turbine. The 900 MW facility
located in Morris, Illinois, is owned by Exelon Nuclear

Bloomberg, September 20, 2004, 12:14.

**Petroleum**

# Murphy Oil: Repairs From Ivan Could Take Five Weeks

Murphy Oil Corporation announced on Monday that production downtime at
the Medusa field, located in Mississippi Canyon Blocks 538 and 582,
could be as much as five weeks to remove a platform workover rig damaged
during Hurricane Ivan. The Medusa SPAR incurred minor damage that will
also be repaired at the same time. The Medusa development is located in
2,200 feet of water and consists of a spar facility capable of handling
40,000 barrels of crude oil and 110 million cubic feet of natural gas a
day. Bloomberg September 20, 2004, 16:05

**PGS Says Norway Workers Strike May Shut Varg Oil Field Oct 8**

Petroleum Geo-Services has received notice from the Norwegian Oil
Workers Union, or OFS, that effective Oct 8, 2004; it will order its
members on PGS\' floating, production, storage and offloading vessel
Petrojarl Varg to join other OFS members in the offshore strike that
commenced in July 2004. PGS had earlier announced that oil production
from the Varg field was expected to exceed 25,000 b/d in the second half
of 2004.

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

**Enbridge to Provide Pipeline Transportation Services for Long Lake Oil
Sands Project**\
Enbridge Inc. announced today it has entered into an interim agreement
with Nexen Inc. and OPTI Canada Inc. (the Long Lake Shippers) to provide
pipeline transportation services for the Long Lake oil sands project.
Under the terms of the agreement, Enbridge will prepare for construction
of the pipeline and storage facilities required by the Long Lake
Project, including one or more diluent laterals, a crude lateral,
blending facilities, and tank storage facilities at a proposed terminal
on the Athabasca Pipeline, near Cheecham. Enbridge\'s 545-km Athabasca
Pipeline will also require capacity expansion from the Cheecham-area
terminal to its mainline terminal at Hardisty, Alta. The agreement
provides for an initial contract volume of up to 60,000 barrels per day
of crude oil for a 50-month term, with provisions for extension of the
term and increase of the contract volume\
<http://biz.yahoo.com/bw/040920/205771_1.html>

**Natural Gas**

## See the Petroleum section for details about evacuation of offshore production units and the impact on production due to Hurricane Ivan.

## 

**Senate Approves Proposal for Coordinated Reviews of LNG Facilities**\
The Senate earlier this week approved an amendment that would require
the Department of Homeland Security (DHS) to submit a report to Congress
on coordinating the U.S. Coast Guard\'s water traffic, security and
safety review with FERC\'s environmental reviews of proposed liquefied
natural gas (LNG) terminals. Natural Gas Intelligence, September 17,
2004

**Other News**

Nothing to report

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (9        | Ago**     | Ago**      |
|                               | /20/04)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 46.33     | 43.87     | 26.97      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 5.22      | 5.13      | 4.38       |
|                               |           |           |            |
| **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