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

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

**October 21, 2004**

**Electricity**

**Storm Drops Record Rainfall in Southern California, Causes Power
Outages**\
As nightfall approached, San Diego Gas & Electric Co. had restored power
to almost all of 29,000 customers who had lost it Tuesday and Wednesday.
Company spokesman Peter Hidalgo said of the 7,500 customers still
without electricity in the county by early afternoon Wednesday, power
had been restored to all but 794 by 3 p.m. Wednesday was the fourth
straight day of rainfall for San Diego after a record dry spell of 182
straight days. A strong storm originating in the Gulf of Alaska moved
over the county in the morning, triggering local flooding, mudslides and
power outages. Power was also knocked out to about 600 customers near
UCLA in Los Angeles.

<http://www.nctimes.com/articles/2004/10/21/news/top_stories/21_32_2510_20_04.txt>
<http://www.nbcsandiego.com/weather/3838719/detail.html>

<http://www.nbc4.tv/news/3838618/detail.html>

### SCE's San Onofre Nuke Plant to be Shut Until January 

Southern California Edison (SCE) will keep its 1,080-megawatt San Onofre
3 nuclear unit in California shut until early January for additional
work on the steam generators, the Edison International subsidiary said
Thursday. The company said in a SEC filing it decided to replace the
unit's degraded pressurizer sleeves in the steam generators, which will
lengthen the current outage from 55 days to 95 to 110 days. SEC shut the
unit about September 27^th^ for refueling and maintenance, and had
expected it to return to service in mid-November. Extending the current
outage to do this work now will allow SCE to move the 2006 refueling
outage, previously scheduled for the summer of 2006, out of the peak
summer period to the fall or winter of 2006.
<http://www.reuters.com/newsArticle.jhtml;jsessionid=XQKGAYNI31XU2CRBAEOCFEY?type=topNews&storyID=6570986>

**AEP to Postpone Maintenance Outage for Oklaunion Plant in TX**
Ohio-based American Electric Power Co Inc. postponed its plan to shut
the boiler at its 676-megawatt Oklaunion coal-fired power unit in Texas
for cleaning, the company told Texas regulators in a report Thursday. On
Oct. 20, the company had said it would shut the boiler on Oct. 21-22 and
remove slag and ash accumulation from Oct. 22-25. The company said it
would reschedule the boiler cleaning outage to a later date, but did not
name the date.
<http://www.reuters.com/newsArticle.jhtml;jsessionid=XQKGAYNI31XU2CRBAEOCFEY?type=topNews&storyID=6568248>

**Haynes Power Plant Expansion Nearly Complete in Long Beach, CA**

The replacement of two units at the Haynes gas-fired plant in Long
Beach, California, is proceeding ahead of schedule and should be
completed before the end of the year, the Los Angeles Department of
Water and Power said on Wednesday. John Schumann, director of power
system planning and projects for the LADWP, said the new units were
currently being tested and should be on-line by the end of 2004, ahead
of the scheduled start date of mid-February 2005. A new combined cycle
complex, consisting of two combustion turbines and one steam turbine and
known as Units 8, 9 and 10, will have a total capacity of about 575
megawatts. It will replace the 230 MW Unit 3, which was retired in
September, and the 230 MW Unit 4, which was taken out of service in
November 2003. Both units are about 40 years old. Reuters, 1706 October
20, 2004

**OPG's Lakeview 1 Coal-fired plant in Ontario Shut for Short-term
Outage**

Reuters, 1333 October 21, 2004

**ATCO Power/OPG to Open 580 Megawatt Brighton Beach Power Plant on
Friday** Nancy Southern, President & Chief Executive Officer, ATCO
Group, and Jake Epp, Chairman, Ontario Power Generation, will officially
open the new 580 megawatt Brighton Beach Power plant in Windson, Ontario

<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5203026>

**FPL Energy Announces Plans for New Wind Farm in Texas** FPL Energy,
LLC, a subsidiary of FPL Group, today announced it will build, own and
operate a new wind farm in Texas, the Callahan Divide Wind Energy
Center, to be located in Taylor County, Texas. The 114-megawatt Callahan
Divide Wind Energy Center will be comprised of 76 1.5-megawatt wind
turbines spread over a 6,000 acre site approximately 12 miles southwest
of Abilene. Construction is expected to begin in the next few weeks and
be completed no later than the first quarter 2005. The Callahan Divide
project is FPL Energy\'s second announced wind project in 2004. The
company previously announced the 106.5- megawatt Weatherford Wind Energy
Center in Oklahoma.
[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp%5EZklhgkrvZUfb%23%3A%40%24bfej%5B%21](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp^ZklhgkrvZUfb%23%3A@$bfej%5B!)

**GFA Carve-out Results in \'Significant\' Reliability Concerns: MISO**

Without careful and continual oversight, carving out approximately
10,300-MW of load under grandfathered transmission agreements could pose
\"potentially significant\" reliability issues for the Midwest
Independent Transmission System Operator, the organization said. In a
filing to the US Federal Energy Regulatory Commission, MISO said it
needs constant information about the

carved-out grandfathered agreements (GFAs) so it can operate the grid
reliably. On Sept 16 FERC ordered MISO to exclude the 10,385-MW of
capacity covered by GFAs from the grid operator\'s energy market, set to
begin in March 2005.

[http://www.platts.com/Electric%20Power/News/2316180.xml?S=n](http://www.platts.com/Electric Power/News/2316180.xml?S=n)

**DOE Picks Southern Company, OUC to Build Clean Coal Technology**

Southern Company announced Thursday that the company has been selected
by the U.S. Department of Energy to build an advanced 285-megawatt coal
gasification facility in central Florida as part of the energy
department\'s Clean Coal Power Initiative. The plant will gasify coal
using state-of-the-art emissions controls, showcasing the cleanest, most
efficient coal-fired power technology in the world.

Bloomberg News, 1315 October 21, 2004

**Petroleum**

**Hurricane Ivan Oil Production Shut-in Statistics** Shut-in oil
production is equivalent to 25.22% of daily production of oil in GOM,
which is approximately 1.7 million BOPD. The 428,785 barrels per day
that is currently shut-in is approximately 2.18% of the 19.7 million
barrels consumed in the U.S. each day. The cumulative shut-in oil
production for the period 9/11/04-10/21/04 is 22,994,168 bbls, which is
equivalent to 3.801% of the yearly production of oil in the GOM which is
approximately 605 million barrels.
<http://www.mms.gov/ooc/press/2004/press1021.htm>

**CA/NV Pipeline Shutdown Halts Fuel Shipments to Las Vegas and
Phoenix**\
The segments of the Kinder Morgan west line and Cal-Nev pipelines that
deliver gasoline and jet fuel to Colton and eventually serve Barstow,
Las Vegas, Imperial, and Phoenix, have been shut down since 9:30 a.m. on
Thursday.   \
OPIS Price Alert, October 21, 2004 Bloomberg News, 1315 October 2004

**Heating Oil Fears Push Futures to All Time High Again**

November heating oil on the NYMEX settled at an all-time front-month
high of \$1.5604/gal Wednesday, and rose further to \$1.5731/gal
Thursday. <http://www.platts.com/Oil/News/2858271.xml?S=n>

# Petroleos Venezuela, Unions Face Contract Deadline 

Petroleos de Venezuela SA, South America\'s largest oil producer, will
try to reach agreement with unions during negotiations today on a new
contract covering 50,000 workers. The current accord expires at
midnight. In a related development, some of Petroleos de Venezuela SA\'s
facilities in the western state of Zulia were occupied by 10,000
unemployed workers demanding jobs, El Nacional reported.

Bloomberg News, 0942 and 1313 October 21, 2004

**Natural Gas**

**Hurricane Ivan Gas Production Shut-in Statistics**

Shut-in gas production is equivalent to 12.55% of the daily production
of gas in the GOM, which is approximately 12.3 BCFPD. The 1,544.08 MMCF
per day that is currently shut-in is approximately 2.57% of the 60.184
BCF consumed in the U.S. each day. The cumulative shut-in gas production
9/11/04-10/21/04 is 95.632 BCF, which is equivalent to 2.149% of the
yearly production of gas in the GOM which is approximately 4.45 TCF.
<http://www.mms.gov/ooc/press/2004/press1021.htm>

**More Storage May be Key to Managing Natural Gas Prices** With heating
season here, enough natural gas appears to be in the ground to meet this
coming winter\'s demand. But, commodity price volatility will
continue---a situation that necessitates more such storage facilities
gets built. That\'s the findings of the staff of the Federal Energy
Regulatory Commission.
[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5DZklijjmsYUfb%23%3A%40%24bfej%5B%21](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5DZklijjmsYUfb%23%3A@$bfej%5B!)

**Other News**

Nothing to report.

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (10       | Ago**     | Ago**      |
|                               | /21/04)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 54.90     | 54.69     | 30.19      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 7.25      | 5.76      | 4.64       |
|                               |           |           |            |
| **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