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

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

**January 22, 2004**

**Electricity**

**Guam Loses Power Yesterday.**

The Guam Power Authority (GPA) restored power to most of the island by 8
p.m. on Wednesday, January 21, several hours after a breaker at the
Hagatna-Mongmong substation exploded. Officials did not know what caused
the explosion. GPA Assistant General Manager Joaquin Flores said the
explosion happened at 12:57 p.m. and within a few minutes the entire
island was without power. \"It is what we call a bulk substation because
it handles up to 19 major lines and what happened is one breaker in the
middle of the whole cluster just blew,\" Flores said. Flores said the
surge was too much for the agency\'s system to isolate and forced all
the power stations to trip off to protect the generators from damage.
[http://www.guampdn.com/news/stories/20040122/localnews/26850
8.html](http://www.guampdn.com/news/stories/20040122/localnews/268508.html)

**NRC To Inspect Clogged Pumps at Kewaunee Nuclear Plant**

The U.S. Nuclear Regulatory Commission has launched a special inspection
of clogged safety pumps at the Kewaunee nuclear power plant on Lake
Michigan in Wisconsin, an NRC spokeswoman said on Wednesday. The NRC
sent two inspectors to the 545 megawatt plant north of Milwaukee to
investigate how silt and weeds from Lake Michigan got into the plant\'s
cooling system. Kewaunee, which can produce power for more than 500,000
homes, is jointly owned by the Wisconsin Public Service unit of WPS
Resources Corp. and the Wisconsin Power & Light subsidiary of Alliant
Energy Corp. and operated by Nuclear Management Co. Pump-clogging
problems have occurred in the past at other nuclear stations, including
Point Beach in Wisconsin, Salem in New Jersey and Ginna in New York. The
plant, which was forced to close Jan. 16 after the clogging was
discovered, has two large pumps that are part of the plant\'s backup
safety system. They are designed to flood the reactor in an accident,
but clogging could prevent them from operating.

<http://biz.yahoo.com/rc/040121/utilities_nmc_kewaunee_2.html>

**AEP in Agreement to Upgrade Ohio Distribution System**\
Ohio utility regulators approved an agreement with American Electric
Power Co. under which AEP must improve its electricity service over the
next two years. The agreement between Columbus-based AEP and the staff
of the Public Utilities Commission of Ohio, or PUCO, requires AEP to
improve its 25 percent worst performing electric distribution circuits
in the state to cut yearly outage times by 40 percent as measured by a
utility industry index. Separately, the Ohio agency turned down a call
by a state consumer agency for a PUCO investigation of the quality of
service provided by Ohio utilities.

The Ohio Consumers Counsel wanted PUCO to probe AEP and FirstEnergy
Corp., the Akron-based utility whose Ohio transmission lines were
identified as triggering the huge Aug. 14 blackout in the Northeast and
part of Canada.

<http://biz.yahoo.com/rc/040121/utilities_aep_ohio_1.html>

**NY Regulators Approve NJ-Long Island Power Line\
**New York utility regulators conditionally approved plans for a
600-megawatt direct current electric transmission line between New
Jersey and Long Island. \"With minimal environmental impact, the Neptune
line will provide needed transmission capability to Long Island and
improve electric system reliability, thereby enhancing the Long Island
Power Authority\'s capability to serve business and residential
customers,\" the New York State Public Service Commission said in a
statement. Neptune is owned by Atlantic Energy Partners LLC, which is
owned by Cianbro Development Corp., Boundless Energy LLC, ESAI Energy
Ventures LLC, Standard Energy Development Inc. and CTSBM Investments
LLC.

<http://biz.yahoo.com/djus/040121/1709001437_1.html>

**Petroleum**

**Oil Prices Up Late on Gasoline Supply Worries**\
Oil prices climbed into positive territory on Thursday on concerns
planned refinery shutdowns could cut into gasoline supply in the United
States, the world\'s largest energy consumer. The gains came despite a
report from the U.S. government Thursday morning which showed imports of
heating oil had countered surging consumer demand that has been
triggered by a prolonged cold snap in the U.S. Northeast. Oil dealers
have been concerned that U.S. refinery maintenance work planned in the
first quarter could cut as much as a million barrels of gasoline
production per day at a time when the industry is facing new fuel
standards. The price strength reversed morning losses triggered by a
bearish set of supply reports from the U.S. government. The U.S. Energy
Information Administration (EIA) said that U.S. distillate stocks,
including heating oil, dropped 2.8 million barrels last week, less than
a fall of 3.8 million barrels that survey of analysts had predicted. The
EIA also said that natural gas stocks fell 156 billion cubic feet (bcf),
narrower than a forecast draw of 185 bcf. Crude inventories rose by 1.2
million barrels, only the second weekly gain since mid-November. Crude
stocks are near their lowest levels since the mid-1970s. Gasoline
supplies rose 1.1 million barrels, but remained 800,000 barrels below
last year\'s levels, the EIA said.
<http://biz.yahoo.com/rm/040122/markets_oil_1.html>
<http://biz.yahoo.com/rm/040122/markets_energy_nymex_6.html>

**Bow River Pipeline Capacity Expansion**

Inter Pipeline Fund announced an agreement with four US refiners to
expand mainline capacity on the Dow River Pipeline System. The \$4
million expansion will increase capacity by 17,000 barrels per day and
is expected to be in operation by May 1, 2004. The expansion will add
capacity for southbound shipments moving from Alberta Canada to US
refineries in the Rocky Mountain region.

Reuters 2:19 PM ET January 22, 2004

**Natural Gas**

**Dominion Peoples Natural Gas Company Workers on Strike.** A union
representing 420 utility workers struck Dominion Peoples natural gas
company, in southwestern Pennsylvania, starting Monday, January 19,
forcing the company to use supervisors and salaried workers to make
emergency repairs. The union represents maintenance employees, meter
readers and customer service workers. The company on Monday directed its
customer service department to check in on elderly or infirm customers
and others known to have special needs.\
<http://www.post-gazette.com/pg/04020/263367.stm>

**LNG Explosion Like That in Algeria Is Unlikely In US Says FERC**

According to staff at the Federal Energy Regulatory Commission (FERC),
an explosion of the type that took place in Algeria earlier this week is
unlikely to happen in the US. Staff analysts said that none of the
existing LNG facilities nor any of the more than two dozen proposed
facilities use the same type of boilers that appear to have been at the
center of the explosion in Algeria. Nonetheless, FERC will follow the
pending investigation and take action to incorporate into future safety
reviews any appropriate measures.

Reuters 13:21PM ET January 22, 2004

**Algerian, US Officials Mull Accident's Impact**

As Algerian officials start the North African state's inquiry into
Monday's fatal explosion at the Skikda liquefied natural gas (LNG)
plant, US LNG executives are beginning their analysis of the disaster's

potential impact on the three-dozen receiving terminals proposed for
North America. The consensus so far: Residents living in the areas where
facilities are planned must be educated intensely about the higher
safety

standards the North American installations must meet and technology
improvements made over the past three decades, and project
owners/developers must be prepared to deal with expanded buffer-space
requirements, meaning more land at each site, and the likelihood of even
more stringent safety policies.

Energy Intelligence, Oil Daily, January 22, 2004

Reuters, January 20, 2004

**FERC Approves Gas Pipeline From Bahamas to Florida**

FERC granted final approval to AES Corporation for the construction of
its Ocean Express pipeline. The Ocean Express will have a daily capacity
of 842 million cubic feet of gas per day and will extend 54 miles from
Ocean Cay, a man-made island where it will receive gas from another AES
affiliate pipeline based in the Bahamas. The Ocean Express will deliver
gas to markets in Florida and is expected to be in service in November
2005.

Reuters 10:16 AM ET January 22, 2004

**Other News\
**

Nothing to report.

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (1        | Ago**     | Ago**      |
|                               | /22/04)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 35.08     | 33.61     | 34.32      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 6.03      | 6.02      | 5.72       |
|                               |           |           |            |
| **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)

Last Updated on January 22, 2004

**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)

Last Updated on January 22, 2004

**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)

Last Updated on January 22, 2004