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

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

**December 1, 2004**

**Highlights / Major Developments**

**Crude Oil Plunges More Than \$3 on Jump in U.S. Fuel Inventories\
**Crude oil tumbled more than \$3, its biggest decline in three years,
on a rise in heating oil and diesel inventories that eased concern about
the adequacy of supplies for winter.\
Bloomberg News, 1447 December 1, 2004

**Electricity**

# High Winds Knock Out Power Throughout Northeast /MidAtlantic Areas

  ----------------------- ----------------------- -----------------------
  COMPANY                 STATE                   OUTAGES

  BG&E                    MD                      80,000

  Pepco                   DC                      4,000

  Pepco & Dominion        VA                      8,000

  PECO, Duquesne Light,   PA                      135,623
  and Allegheny Power                             

  Connectiv, PSE&G,       NJ                      19,300
  Jersey Central Power                            

  Connectiv               DE                      5,000

                          OH                      20,000

  Consumers Energy & AEP  MI                      47,000

  AEP                     WV                      22,000
  ----------------------- ----------------------- -----------------------

<http://www.thewbalchannel.com/weather/3962978/detail.html>\
<http://www.washingtonpost.com/wp-dyn/articles/A25852-2004Dec1.html?nav=rss_metro>\
<http://www.kyw1060.com/news_story_detail.cfm?newsitemid=42276>\
<http://news.yahoo.com/news?tmpl=story&u=/kmgh/20041201/lo_wews/2478406>

<http://news.yahoo.com/news?tmpl=story&u=/wplg/20041201/lo_wtae/2477681>\
<http://www.freep.com/news/latestnews/pm1608_20041201.htm>\
<http://www.dailymail.com/news/News/2004120121/>

<http://www.timesleader.com/mld/timesleader/news/local/10314706.htm>\
<http://1010wins.com/topstories/local_story_336135727.html>

# More Problems Discovered At San Onofre Nuclear Plant

## Generator Remains Offline

An 1,100-megawatt nuclear generator at the San Onofre power plant will
remain offline after engineers discovered tiny cracks in its water
heaters, according to a newspaper report.

<http://www.nbcsandiego.com/news/3961789/detail.html>

**AES Calif. Alamitos 4-6 Power Units Back**

Virginia-based global energy company AES Corp.\'s 320-megawatt unit 4
and 480 MW units 5 and 6 at the Alamitos gas-fired power station in
California returned to full service by late Tuesday, the California
Independent System Operator said in a report. Early Tuesday, the company
curtailed units 5 and 6 by 275 MW and 285 MW, respectively, for planned
reasons. Over the past few days, AES curtailed units 5 and 6 early on
Nov. 29, returned the units to full service by late Nov. 29, curtailed
the units again early on Nov. 30, and now returned the units to full
service again by late Nov. 30.

Reuters, 0732 December 1, 2004

**APS N.M. Four Corners Power Unit Shut**

One 740-megawatt unit at Arizona Power Public Service Co.\'s Four
Corners coal-fired power station in New Mexico shut for unplanned
reasons by late Tuesday, the California Independent System Operator said
in a report.\
Reuters, 0747 December 1, 2004

**TXU Sees Texas Big Brown 2 Power Unit Back Soon**

Dallas-based TXU Corp. will restart its 560-megawatt Big Brown 2
coal-fired power unit in Texas on Nov. 30 following repairs, the energy
company told Texas regulators in a report. In a separate report the
company said the unit tripped on Nov. 30 due to backpressure on the
condenser.

Reuters, 0813 December 1, 2004

**Petroleum**

# Delaware River Spill Update \# 4

A new estimate of gallons spilled into the Delaware River is pending
tests conducted by the Coast Guard. The original 30,000 gallon estimate
was conducted shortly after the spill by ship\'s engineer. The vessel
was listing when the soundings were taken possibly affecting an accurate
reading for number of gallons spilled. The spill estimate is expected to
rise, but the exact number is not yet available. \"I am no longer
confident in the estimate given earlier, as further information is
confirmed we may have to prepare ourselves for a markedly higher
number,\" said Captain Jonathan Sarubbi, Captain of the Port of
Philadelphia. Clean up crews have recovered approximately 10,200 gallons
of oil and oil water mixtures. 41,000 feet of spill control boom has
been installed around the vessel and along both shores to protect
environmentally sensitive areas. The oil sheen spreads approximately 50
miles from the Tacony-Palmyra Bridge to the Artificial Island.

U.S. Coast Guard, Atlantic Area, November 30, 2004

**Plan in Place to Resume Production at Terra Nova**\
The Canada-Newfoundland Offshore Petroleum Board has advised
Petro-Canada that it has completed its investigation and formally lifted
the suspension of production, once our recommended mitigation actions
are in place. Production was shut down on November 21, 2004, following
the discharge of oily water from the Terra Nova Floating, Production,
Storage and Offloading (FPSO) platform. However, the current production
shutdown will be extended for approximately one week to ten days to
allow the completion of additional maintenance work.\
<http://biz.yahoo.com/prnews/041201/to128_1.html>

**New Diesel Sulfur Regs Could Lead to Significant Supply Woes: NPC**

The National Petroleum Council, in a report released Wednesday, said the
move to ultra low sulfur diesel has the potential for \"significant
supply disruptions\" in the US. NPC, the advisory body to the US Energy
Department, also said it believes the transition period for ULSD is
\"likely to be more difficult and longer than historically associated
with major product specification changes.
<http://www.platts.com/Oil/News/5314274.xml?S=n>

**Natural Gas**

**US FERC Staff Gives Environmental Nod to KeySpan LNG Proposal**

KeySpan LNG\'s plan to convert a Rhode Island liquefied natural gas
storage

facility into an import terminal won initial approval in a draft
environmental

impact statement by US Federal Energy Regulatory Commission staff
Tuesday.
[http://www.platts.com/Natural%20Gas/News/6135258.xml?S=n](http://www.platts.com/Natural Gas/News/6135258.xml?S=n)

**Other**

# Coal Fuel of Choice for White House

The White House has an answer to sustained high natural gas prices, \$50
a barrel oil, and pressure from environmental and international groups
to cut harmful emissions: Burn more coal. \"Coal production is at record
setting or near record setting growth,\" said John Grasser, director of
communications for the Department of Energy\'s Office of fossil Energy.
U.S. coal output will top 1 billion tons this year, \"more coal than
this country has ever produced before,\" Grasser said.

[http://www.marketwatch.com/news/story.asp?siteid=yhoo&guid=%7BD0738F59%2DA61A%2D44C5%2D8262%2DA198002BA00C%7D&](http://www.marketwatch.com/news/story.asp?siteid=yhoo&guid={D0738F59-A61A-44C5-8262-A198002BA00C}&)

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **\       | **\        |
|                               | (12       | Week      | Year Ago** |
|                               | /01/04)** | Ago**     |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 45.56     | 49.14     | 29.89      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 6.78      | 5.01      | 5.02       |
|                               |           |           |            |
| **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