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

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

**November 11, 2004**

**Electricity**

**No Free Gas, Boss of Philadelphia Utility Warns\
**It could be a long, cold winter for deadbeat Philadelphia Gas Works
customers, the utility\'s chief executive officer said yesterday. \"PGW
cannot, and the company will not, provide free gas,\" Thomas Knudsen
told reporters at PGW\'s North Philadelphia headquarters. \"That is not
our responsibility.\" Knudsen spoke while standing behind a table
mounted with 35,000 cutoff notices that he said would soon be mailed to
customers who had failed to pay their bills. If those customers don\'t
pay within 10 days, Knudsen said, they could join the 20,000 already cut
off as part of an aggressive campaign by the cash-strapped utility.
Knudsen said rattling the saber at those who do not pay is key to
keeping PGW solvent. He said that half of the utility\'s customers
regularly failed to pay and that 25 percent of new customers became
delinquent within a year. The get-tough approach is aided by regulatory
changes that strengthen PGW\'s hand. One change OKd by the state\'s
Public Utility Commission allows PGW to get around a decades-old
moratorium on shutting off heat to customers during the winter. PGW said
the moratorium allowed customers to ignore bills with impunity. Restored
customers also now pay substantial security deposits. The winter
moratorium is still in place for lower-income customers \-- a fact not
mentioned in the sternly worded advertising campaign recently launched
by the utility.
[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp%5EZknkkrqiRSmk%22EN%26bfej%5B%21](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp^ZknkkrqiRSmk"EN%26bfej%5B!)

**Duke\'s Calif. Moss Landing 2 Starts to Exit Outage**

North Carolina-based Duke Energy Corp.\'s 530-megawatt Moss Landing 2
natural gas-fired unit in California started to exit an outage and was
available for service at about half power by late Wednesday, the
California Independent System Operator said in a report. The company
shut both 530 MW units 1 and 2 on about Nov. 1 for an inspection of both
units\' compressors. On Oct. 27, the company cut in half the power
output of unit 1 due to a problem with the compressor in one of the gas
turbines. As a precaution, the company shut the other gas turbine at
unit 1 and both gas turbines at unit 2 for the inspection. Both turbines
a unit 1 remained shut Thursday. A spokesman at Duke said on Nov. 1 it
would take about two months to repair the failed turbine in unit 1.

Reuters, 0801 November 11, 2004

**Elk Hills Gas-fired Unit Comes Back up to Full Power**\
The 549 MW Elk Hills gas-fired plant exited a curtailment on November
10, 2004.\
Reuters, 1355 November 10, 2004

**Duke\'s S.C. Catawba 2 Nuke Up to 96 Percent Power**\
North Carolina-based Duke Energy Corp.\'s 1,129-megawatt Catawba 2
nuclear unit in South Carolina returned to service and ramped up to 96
percent of capacity by early Thursday, the U.S. Nuclear Regulatory
Commission said in its power reactor status report. On Wednesday, Duke
reduced the unit to about 9 percent of capacity to fix a hydraulic fluid
leak around the main turbine valve.

Reuters, 0724 November 11, 2004

**AES\' Calif. Redondo 7 & 8 Power Plants Back**

Virginia-based global energy company AES Corp.\'s Redondo natural
gas-fired units 7 and 8 returned to service by late Wednesday, the
California Independent System Operator said in a report. The units shut
on about Nov. 8 for unplanned reasons.

Reuters, 0806 November 11, 2004

**AEP to Shut Texas Welsh 2 Power Plant for Work**

Ohio-based American Electric Power Co Inc.\'s 528-megawatt Welsh 2
coal-fired power unit in Texas will shut from Nov. 12-15 for work on the
boiler and precipitator, the company told Texas regulators in a report
Thursday. In another report, the company said it would repair plant
equipment including emissions and control equipment from Nov. 12-20.

Reuters, 0817 November 11, 2004

**TXU to Restart Texas Martin Lake 2 Power Plant**

Dallas-based energy company TXU Corp. will start its 750-megawatt Martin
Lake 2 coal-fired power unit in Texas on Nov. 10, Texas regulators said
in a report. The unit tripped on Nov. 10 due to a flame scanner
malfunction.

Reuters 0841 November 11, 2004

**Bruce Power Ontario Bruce 3 & 8 Nukes Shut**

Bruce Power shut two units at its Bruce nuclear station on Nov. 10, the
company said in two statements Wednesday and Thursday. The 840 megawatt
Bruce B 8 shut for a brief, unplanned outage after its turbine cooling
water pumps automatically shut down. The company expects to return the
unit to service shortly. The 825 MW Bruce A 3 shut so operators can work
on the heat transport system. Units 4, 5 and 7 remain online while unit
6 remains off line for its scheduled inspection program and will likely
return to service later this month.

Reuters, 1010 November 11, 2004

**OPG\'s Ontario Lennox 1 Power Plant Back**

Ontario Power Generation\'s 535-megawatt Lennox 1 oil and natural
gas-fired unit in Ontario returned to service following a short-term
forced outage begun on Nov. 10, a company spokesman said Thursday.
Elsewhere in Ontario, OPG\'s 490 MW Nanticoke 4 coal-fired unit shut for
a short-term forced outage.

Reuters, 1024 November 11, 2004

**Update \-- Power Plant Outages on November 10**\
In South Carolina, Duke reduced power at its Catawba 2 nuke In North
Carolina to fix a hydraulic fluid leak around the main turbine valve.
The company did not expect the work to take long and will likely not
shut the unit to complete the work, a plant spokeswoman said. In
Nebraska, NPPD\'s Cooper nuke ramped up to 90 percent of capacity, up
from 56 percent on Tuesday after the unit exited an outage begun on Oct.
19 to inspect and repair a turbine vibration. In Ontario, OPG\'s Lennox
1 oil and gas-fired unit shut for

a short-term forced outage, while the company\'s Nanticoke 4 coal-fired
unit returned to service from a short-term planned outage begun on about
Nov. 1. Elsewhere in Ontario, the Brighton Beach gas-fired unit

shut for planned maintenance.\
Reuters, 1332 November 10, 2004

**East Kentucky Co-op Proposes New Coal-fired Generating Plant**

East Kentucky Power Cooperative announced plans Wednesday for a 278-MW
coal-burning power plant Smith 1 that will create a new market for up to
1.2 million tons of coal annually. The plant will be built at the Clark
County, Ky., site of a baseload coal project, J.K. Smith, abandoned by
East Kentucky more than a decade ago. If approved by regulators, Smith 1
is expected to begin producing power in 2009.\
<http://www.platts.com/Coal/News/4698673.xml?S=n>

**Aquila Breaks Ground on 342-Megawatt South Harper Peaking Project in
Missouri\
**<http://finance.lycos.com/qc/news/story.aspx?story=200411101010_BWR__BW5190&symbols=QCNEWS:0>\
Reuters, 1526 November 11, 2004

**Petroleum**

# MMS to Reduce Gulf Output Reports as Recovery Slows 

# No Update Today Due to Veteran's Day

The U.S. Minerals Management Service will cut back reports on crude oil
and natural gas production losses from Hurricane Ivan to twice weekly
from daily because the

pace of returning output will probably slow, the agency\'s Gulf of
Mexico regional director said. Starting next week, reports will only be
issued on Mondays and Thursdays.

Bloomberg News, 1555 November 11, 2004

**Oil Drops Again on Rising Supply**\
Oil tumbled again on Thursday, resuming a two-week slide that has cut 15
percent from prices as rising crude inventories ease concerns over
winter fuel supplies. U.S. light crude fell \$1.63 to \$47.23 a barrel,
more than \$8 below the record \$55.67 peak struck in late October.
Brent crude in London lost \$1.75 to \$43.00 a barrel, as speculative
funds exited into other markets such as equities following oil\'s 45
percent rally this year.\
<http://biz.yahoo.com/rb/041111/markets_oil_5.html>

**US\' Valero Says Bringing McKee Refinery Units Back On-line**

US refiner and marketer Valero is bringing all units at its 180,000 b/d
McKee refinery in Sunray, Texas, back on line following a localized
power outage Wednesday, the company reported. Valero reported the
shutdown late Wednesday. The units include 102,000 b/d and 60,000 b/d
crude units, a 55,000 b/d fluid catalytic cracker, a 30,000 b/d
hydrocracker, a 29,000 b/d continuous catalyst

regeneration reformer and an 18,000 b/d semi-regen reformer, according
to

Valero\'s website.\
<http://www.platts.com/Oil/News/3947523.xml?S=n>

**Iraq-Turkey Oil Pipeline Resumes Pumping to Ceyhan**

Iraq\'s crude pipeline to Turkey has resumed pumping at a rate of 22,000
barrels per hour, a shipping source said on Thursday. Flows resumed late
on Wednesday, the source said. The pipeline had been idle following last
week\'s massive blast near the Kirkuk oilfields and a smaller sabotage
attack on Tuesday, shipping sources said.\
Reuters, 0418 November 11, 2004

**Update -- Nigerian General Strike and the Oil Industry**

At first Nigerian's main oil unions said that their members would join
next week\'s planned nationwide general strike and warned that this
would disrupt the country\'s exports of crude to the world market. Later
the union stated that it would not attempt to disrupt crude oil
shipments. A Nigerian court made it all moot in a sense, since on
Thursday the court ruled the country\'s main umbrella union could not
call a general strike next week in the world\'s eighth largest oil
exporter to protest increases in domestic gasoline prices. The judgment
bolstered the government, granting an interim order to stop the Nigeria
Labour Congress (NLC) strike which has raised fears of a disruption of
oil supplies*.*

Reuters, 0823 November 11, 2004

Bloomberg News, 0550 November 11, 2004\
<http://story.news.yahoo.com/news?tmpl=story&cid=1503&ncid=1503&e=3&u=/afp/20041111/ts_afp/nigeria_strike_oil_041111120024>

# Natural Gas

# MMS to Reduce Gulf Output Reports as Recovery Slows 

# No Update Today Due to Veteran's Day

The U.S. Minerals Management Service will cut back reports on crude oil
and natural gas production losses from Hurricane Ivan to twice weekly
from daily because the

pace of returning output will probably slow, the agency\'s Gulf of
Mexico regional director said. Starting next week, reports will only be
issued on Mondays and Thursdays.

### Bloomberg News, 1555 November 11, 2004 

### OFO/EFO Outlook for Pacific Gas and Electric

*Last Updated Thursday, November 11th, 2004 at 7:16am*

  ------------ ------------------- --------------- ------------------- ------------
  **Gas Day**  **Activity**        **Tolerance**   **Stage/\           **Reason**
                                                   Noncompliance       
                                                   Charge**            

  11/9/2004    No OFO In effect                                        

  11/10/2004   **System Wide OFO   5%              Stage 3 at          High
               in effect**                         \$5.00/Dth          Inventory

  11/11/2004   **System Wide OFO   5%              Stage 3 at          High
               in effect**                         \$5.00/Dth          Inventory

  11/12/2004   No OFO In effect                                        
  ------------ ------------------- --------------- ------------------- ------------

When an OFO or EFO has been called, customers\' supplies are required to
be within the tolerance requirement of daily usage to avoid
noncompliance penalties.\
[*http://www.pge.com/cgi-bin/cgt_pipeline_status.pl#notice*](http://www.pge.com/cgi-bin/cgt_pipeline_status.pl#notice)

**Columbian Gas Transmission Posts Nat Gas Critical Day Notice for
November 11**

+----------+----------------------------------------------------------+---+
| Notice   |   --------------                                         |   |
| ID 6989  | --------------- --- ------------- -------------- ------- |   |
|          |   Notice Type                                            |   |
|          | Other                 Posted        Date\          Time\ |   |
|          |                                                          |   |
|          |                                     11/10/2004     07:13 |   |
|          |                                                          |   |
|          |                                                       AM |   |
|          |                                                          |   |
|          |   Notice Statu                                           |   |
|          | s 1 - INITIATE        Beginning     11/10/2004     09:00 |   |
|          |                                                          |   |
|          |                                                       AM |   |
|          |                                                          |   |
|          |   Critical YES                                           |   |
|          |  - THIS IS A          Ending        12/10/2004     11:59 |   |
|          |   CRITICAL                                               |   |
|          | NOTICE                                                PM |   |
|          |                                                          |   |
|          |   Required                                               |   |
|          | \                         Response                       |   |
|          |   Respons                                                |   |
|          | e 5 - NO RESPONSE                                        |   |
|          |   REQUIRE                                                |   |
|          | D                                                        |   |
|          |   --------------                                         |   |
|          | --------------- --- ------------- -------------- ------- |   |
+----------+----------------------------------------------------------+---+
|   ----   |                                                          |   |
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| ----- -- |                                                          |   |
| -------- |                                                          |   |
|          |                                                          |   |
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|          |                                                          |   |
|   Author |                                                          |   |
|          |                                                          |   |
| TCO -    |                                                          |   |
|          |                                                          |   |
|   DENNIS |                                                          |   |
|   CR     |                                                          |   |
| ITICAL   |                                                          |   |
|          |                                                          |   |
| THOMPSON |                                                          |   |
|   DA     |                                                          |   |
| Y NOTICE |                                                          |   |
|          |                                                          |   |
|   FO     |                                                          |   |
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|          |                                                          |   |
|   DA     |                                                          |   |
| Y        |                                                          |   |
|          |                                                          |   |
|   NO     |                                                          |   |
| VEMBER   |                                                          |   |
|          |                                                          |   |
|   11     |                                                          |   |
| , 2004   |                                                          |   |
|          |                                                          |   |
|          |                                                          |   |
|   ----   |                                                          |   |
| ------ - |                                                          |   |
| ----- -- |                                                          |   |
| -------- |                                                          |   |
+----------+----------------------------------------------------------+---+
| Notice   |                                                          |   |
| Text     |                                                          |   |
+----------+----------------------------------------------------------+---+
| Based on |                                                          |   |
| storage  |                                                          |   |
| i        |                                                          |   |
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| capacity |                                                          |   |
| and on   |                                                          |   |
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| requi    |                                                          |   |
| rements, |                                                          |   |
| Tra      |                                                          |   |
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| no       |                                                          |   |
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| capacity |                                                          |   |
| will be  |                                                          |   |
| a        |                                                          |   |
| vailable |                                                          |   |
| for      |                                                          |   |
| non-firm |                                                          |   |
| s        |                                                          |   |
| ervices. |                                                          |   |
| Th       |                                                          |   |
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| MDIQ,    |                                                          |   |
| i        |                                                          |   |
| mbalance |                                                          |   |
| p        |                                                          |   |
| aybacks, |                                                          |   |
| ISS      |                                                          |   |
| inj      |                                                          |   |
| ections, |                                                          |   |
| PAL      |                                                          |   |
| pa       |                                                          |   |
| rks/loan |                                                          |   |
| payback, |                                                          |   |
| and SIT  |                                                          |   |
| in       |                                                          |   |
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| will not |                                                          |   |
| be       |                                                          |   |
|          |                                                          |   |
| ava      |                                                          |   |
| ilable.\ |                                                          |   |
| <http:/  |                                                          |   |
| /www.col |                                                          |   |
| umbianav |                                                          |   |
| igator.c |                                                          |   |
| om/Ebb/> |                                                          |   |
+----------+----------------------------------------------------------+---+

**Other News**

Nothing to report.

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (11       | Ago**     | Ago**      |
|                               | /11/04)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 47.50     | 48.80     | 31.21      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 6.19      | 7.40      | 4.52       |
|                               |           |           |            |
| **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