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

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

**ENERGY ASSURANCE DAILY**

**October 14, 2005**

## Highlights/Major Developments

**Update: Hurricane Rita and Hurricane Katrina**

For the latest damage assessment and restoration efforts concerning
hurricanes Rita and Katrina see the latest Gulf Coast Hurricane
situation report from the Office of Electricity Delivery and Energy
Reliability (OE) of the U.S. Department of Energy @
[http://www.oe.netl.doe.gov](http://www.oe.netl.doe.gov/). Starting with
September 24^th^, a combined Hurricane Rita /Katrina situation report
has been prepared called the Gulf Coast Hurricane situation report.
Prior Hurricane Rita and Hurricane Katrina situation reports can be
found at that link as well.

For the latest statistics on shut-in oil and gas production in the Gulf
of Mexico, please click on the following link:
[*http://www.mms.gov/*](http://www.mms.gov/)

**Damage Assessment Information from Reuters**

On October 13, EIA reported that 15 natural gas processing plants are
shut by storms with a combined capacity of 9.51 bcfd.

BP said it continued to assess damage to offshore facilities, adding
that gas production at Nakika and Marlin platforms will resume within
days. BP said its Thunderhorse platform will start production
\"sometime\" in 2006, after being set back from a late 2005 target by
the hurricanes. BP anticipates that the platform will produce 250,000
bpd.

Total Canyon Express restarts gas production, but Matterhorn and Virgo
oil and gas platforms remain shut.

Explorer Pipeline (575,000 bpd oil products) Houston-Midwest is seen at
75 percent run rate by October 14. It is currently running at 50 percent
of normal flow rates due to lack of product from refineries. Lake
Charles-Texas line came back up October 11, and is awaiting products to
transport.

The Entergy 959 MW Michoud power plant in Louisiana remains shut.
Entergy Sabine power plant in Texas has two units shut: 212 MW Sabine 1,
212 MW Sabine 2.

Mississippi Power Watson power plant remains shut. The 263 MW Unit 4 is
expected to restart November 1. The 512 MW Unit 5 is expected to restart
January 1. Units 1-3, 272 MW, are down for unknown period.

Reuters, 14:50 October 14, 2005

**Significant Operations Resume at TECO Bulk Terminal**\
TECO Energy reported today that its bulk terminal business, which is
located in Davant, Louisiana, south of New Orleans, resumed operations
on October 12. Following Hurricane Katrina the TECO Bulk Terminal was
flooded and without power.\
<http://biz.yahoo.com/prnews/051013/flth021.html?.v=25>

######## Electricity

### Bruce Power in Ontario to Restart Two Nuke Units in Kincardine 

Two northern Ontario nuclear power units that have been idle since the
mid-1990s will be refurbished now that the province has given final
approval, sources said Thursday. Units 1 and 2 total 1,500 MW of
electricity.

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=6020281>

**Work to Begin in Pueblo on New 750 MW Coal-fired Unit**\
Work could begin as early as next week on Xcel Energy\'s new \$1.3
billion coal-fired power plant in Pueblo, a company official says.

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=6020522>

**APS' 740 MW Four Corners 5 Coal-fired Unit Returns to Service Oct 14**

The unit shut on Oct. 9 to repair a boiler tube leak.\
Reuters, 14:21 October 14, 2005

**AEP's 580 MW Pirkey Coal-fired Power Plant in Texas Shut October 14**

Reuters 13:52, October 14, 2005.

**TXU's 560 MW Big Brown Coal-fired Power Plant in Texas Shut October
14**

Reuters 13:52, October 14, 2005.

**Perry Nuclear Plant Returns to 99 percent of Capacity**

FirstEnergy\'s Perry 1,238 MW nuclear generating station ramps up to 99
percent of capacity following a reduction to perform condenser
maintenance.

Reuters 13:38, October 14, 2005.

**OPG's 881 MW Unit 2 at its Darlington Nuclear Generating Station in
Ontario Shut October 13**

Reuters 13:38, October 14, 2005.

**OPG's 515 MW Unit 1 at its Pickering Nuclear Generating Station in
Ontario Shut October 14**

Reuters 13:38, October 14, 2005.

For information on damage and restoration efforts to the electricity
infrastructure and the number of power outages due to Hurricanes Rita
and Katrina, please see the Gulf Coast Hurricane situation report from
the Office of Electricity Delivery and Energy Reliability (OE) of the
U.S. Department of Energy at the following link:
[http://www.oe.netl.doe.gov](http://www.oe.netl.doe.gov/).

######## Petroleum

### Oil Falls, Gasoline Touches 12-Week Low, as U.S. Demand Slips

### Crude oil fell and gasoline plunged to a 12-week low on indications that near-record prices are reducing fuel consumption in the U.S.

### Bloomberg News, 14:40 October 14, 2005

# 

# Canada Warns That Tariffs on Lumber Could Imperil U.S. Access to Oil Upset over persistent American tariffs on Canadian softwood lumber, Canadian leaders are warning the Bush administration that it is risking secure access to Canadian oil supplies.

<http://www.nytimes.com/2005/10/12/international/americas/12canada.html>

For information on damage and restoration efforts to the petroleum
infrastructure due to Hurricanes Rita and Katrina, please see the Gulf
Coast Hurricane situation report from the Office of Electricity Delivery
and Energy Reliability (OE) of the U.S. Department of Energy at the
following link:
[http://www.oe.netl.doe.gov](http://www.oe.netl.doe.gov/).

######## Natural Gas

**High Gas Prices Have Some Eyeing Fuel Switching**

The doubling of natural gas prices in the last year has some power
producers and businesses considering an early switch to alternate fuel
supplies like fuel oil and diesel, analysts said Friday. But prices for
natural gas will need to rise further in order to make the switch to
distillate fuels financially viable in many regions of the United
States. Analysts have said the nationwide capacity for switching totals
about 400,000 bpd. That amount could pose a significant burden on
distillate suppliers at the height of winter. Natural gas prices in New
York on Friday were around \$13.50 per million British thermal units,
more than double the year-ago level. Heating oil \-- the benchmark for
distillates \-- was near \$1.90 a gallon \-- equivalent to about \$13.42
per mmBtu.

Reuters, 13:38 October 14, 2005

**Hurricanes Expose Vulnerability of Natural Gas Infrastructure**

Katrina and Rita exposed the risk of having such a critical
infrastructure for U.S. natural gas so heavily concentrated in one
region of the country, according to a report published by Standard &
Poor\'s Ratings Services. The report, titled \"Katrina And Rita Pressure
Natural Gas Model; U.S. Infrastructure Vulnerability Exposed,\" is part
of a special Standard & Poor\'s report on the significance of high
energy prices in next week\'s CreditWeek, the investment research
leader\'s weekly magazine on credit risk.

<http://pro.energycentral.com/professional/news/gas/news_article.cfm?id=6019825>

**Keyspan Warns of Gas Curtailments to Northeast Generators this
Winter**

A top KeySpan Energy official on Wednesday warned federal energy
regulators that electric generators in New England face potential
natural gas curtailments this winter, given that a large number of them
have failed to negotiate firm transportation contracts to ensure the
delivery of gas to power their facilities. A spokeswoman for ISO New
England, the operator of the region\'s bulk power system and wholesale
electricity markets, said it shares KeySpan Energy\'s concerns.

Natural Gas Intelligence, October 13, 2005\
[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BelnorptXThe%23%3A%40%24bfek%5Cv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BelnorptXThe%23%3A@$bfek\v)

### Twenty LNG Tankers May Be Prone to Leaks, TradeWinds Reports

A problem discovered on a BG Group Plc ship is leading investigators to
suspect that as many as 20 liquefied natural gas tankers under
construction or already in service for various companies may be prone to
leaks, TradeWinds reported.

Bloomberg News, 14:04 October 14, 2005

For information on damage and restoration efforts to the natural gas
infrastructure due to Hurricanes Rita and Katrina, please see the Gulf
Coast Hurricane situation report from the Office of Electricity Delivery
and Energy Reliability (OE) of the U.S. Department of Energy at the
following link:
[http://www.oe.netl.doe.gov](http://www.oe.netl.doe.gov/).

######## Other News

### 

### Pine Valley Starts Coal Prep Plant at its Willow Creek Mine

Canadian coal producer Pine Valley Mining Corp. said Wednesday it
started commissioning its Willow Creek coal preparation plant on Monday.

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

######## Energy Prices 

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (10       | Ago**     | Ago**      |
|                               | /14/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 62.61     | 61.81     | 54.69      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 12.80     | 13.67     | 5.76       |
|                               |           |           |            |
| **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/)

.