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

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

###### July 29, 2004

**Electricity**

# 

# Approximately 35,000 Homes and Businesses Lose Power in Dallas Storm

Fierce overnight storms dropped up to 13 inches of rain in the Dallas
area, flooding highways and homes, knocking out power to thousands and
collapsing the roof of a 911 call center. More than 240 homes were
evacuated early Thursday after a creek rose out of its banks alongside a
subdivision. An estimated 35,000 homes and businesses were without power
early Thursday, TXU Electric Delivery said. And parts of Interstates 20,
35 and 45 were closed for a time by high water. Wind gusts of 58 mph
were measured at Fort Worth Alliance Airport. Dallas-based Southwest
Airlines delayed some flights and canceled others at Love Field, and
flights were also delayed at Dallas-Fort Worth International Airport.
<http://www.cnn.com/2004/WEATHER/07/29/texas.flood.ap/index.html>

# Update \-- APS transformer Still En Route to Valley in Arizona

The huge electric transformer headed east towards an Arizona Public
Service Co. (APS) substation that lost a similar unit in a July 4 fire,
continues to make its way to the Valley, despite another setback late
Wednesday. Earlier problems, including the transformer sliding off its
huge trailer and then later the trailer dragging on the pavement of a
remote California desert highway, had Arizona Public Service officials
wanting to reload the 380,000-pound transformer onto a new hydraulic
trailer. However, that plan was scrapped Wednesday night, and once again
the trailer, with transformer on board, took to the road and early
Thursday crossed into the Arizona border at Parker. APS spokesman Damon
Gross told Newsradio 620 KTAR that the California Transportation
Authority said safety measures were now in place that should be
sufficient enough to get the massive transformer to the Valley. Barring
any unforeseen problems, Gross expects the transformer to arrive in the
Valley by this weekend, completing its more than week-long drive. For
more: [www.aps.com](http://www.aps.com/).
<http://phoenix.bizjournals.com/phoenix/stories/2004/07/26/daily50.html>

**Companies Urge Customers to Cut Energy Usage** Three times in the last
two weeks, the electrical transmission grid in south Louisiana has been
one step away from controlled blackouts. To avoid such an occurrence,
representatives of four electric companies - Lafayette Utilities
Systems, Cleco Inc., Slemco and Entergy - made a plea to customers to
conserve energy right away. LUS Director Terry Huval said the four
companies are suggesting residents set thermostats no lower than 78
degrees from noon until 8 p.m. each day. The thermostat switch will be
mandatory for city-parish buildings, Huval said. Electric companies have
purposely blacked out areas for minutes at a time, in order to avoid the
grid getting so overloaded the entire grid shuts down - like what
happened last summer.
[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp%5EZjknrmruVUnj%7DGJ%7Bbfej%5Bv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp^ZjknrmruVUnj}GJ{bfej%5Bv)

#### Governor Holds Roundtable Discussion of Electricity \'Demand Response\'

Pacific Gas and Electric Company has been a strong supporter of the
state\'s Flex Your Power conservation campaign and is taking an active
role in this new partnership of utilities, government, and business
offering the public important early-warning information should power
supply or delivery emergencies occur this summer. One goal of the new
Flex Your Power Now! partnership is to ask consumers and businesses to
reduce energy use now during critical peak summer hours \-- noon to 7
p.m. \-- when the power grid is being pushed to its maximum capacity and
an unexpected generation or delivery problem could cause the most
significant problems.

<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5018128>

**Nebo Power Plant is Dedicated** The Nebo Power Station, built to take
the sting out of high- priced electricity, was dedicated Tuesday in
front of nearly 200 dignitaries from around the state. The 146-megawatt,
\$100 million dual generator facility will supply some of the power for
the 16 municipalities and one electric company represented by the Utah
Association of Municipal Power Systems that came together to build the
plant. It will also fit into Utah\'s growth pattern, one of the first of
many that will be built in coming years, said Gov. Olene Walker
<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5018091>

**Petroleum**

**Russian Justice Ministry Pledges to Prevent Yukos Production Halt**

Russia\'s Minister of Justice Yuri Chaika has pledged to prevent an
interruption to embattled oil firm Yukos\' 1.7-mil b/d oil production by
paying its workers salaries using cash from the Russian major\'s frozen
accounts, the

government newspaper Rossiskaya Gazeta reported Thursday.

<http://www.platts.com/Oil/News/7637972.xml?S=n>
<http://www.platts.com/Oil/News/5090456.xml?S=n>

**Iraq Says August Exports May Reach 1.8 Million B/D** Bloomberg News,
1034, July 29, 2004

**US Slows Oct. Deliveries to Emergency Oil Reserve**

The Energy Department plans to reduce oil deliveries into the nation\'s
emergency petroleum stockpile during October, just ahead of the winter
heating season, and boost September\'s shipments. Under the new delivery
schedule posted on the Energy Department\'s Web site this week, oil
shipments into the Strategic Petroleum Reserve would be reduced by
750,000 barrels to 4.850 million barrels during October. Reuters, July
29, 2004

**LaGloria Refinery Faces Possible Weekend Strike** OPIS Price Watch
Alert, July 28, 2004

# 

# Natural Gas

**FERC Stamps OK on Transwestern\'s San Juan Lateral Expansion**\
FERC Commissioners on Wednesday approved Transwestern Pipeline\'s San
Juan 2005 expansion project in New Mexico. The move allows the company
to add 375 MMcf/d to its system. Natural Gas Intelligence, July 28, 2004

**LNG, High Liquids Content Bring Gas Interchangeability, Quality Issues
to Forefront**\
The growing variability in the composition of natural gas delivered to
American consumers is creating a number of new operational, reliability
and safety concerns, according to a presentation made Wednesday at
FERC\'s regular meeting by a broad coalition of industry trade
associations, research organizations and other stakeholders. Natural Gas
Intelligence, July 29, 2004

**Other**

**Dauphin County, Pa.-area Nuclear Power Plants Must Upgrade Security**

Nine guard towers and thick razor-wire fence roped around Peach Bottom
Atomic Power Station\'s protected area will make the plant appear more
like a prison than a utility. Exelon Nuclear will spend roughly \$70
million to upgrade the security at its 10 plants, including Three Mile
Island in Dauphin County and Peach Bottom Atomic Power Station.
<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5015656>

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (7        | Ago**     | Ago**      |
|                               | /29/04)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 42.69     | 41.55     | 30.21      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 5.93      | 5.85      | 4.72       |
|                               |           |           |            |
| **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