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

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

###### August 16, 2004

**Highlight / Major Developments**

**Over 1.3 Million People Lost Power Due to Hurricane Charley**

Reuters, 1516 August 14, 2004

**700,000 -- 890,000 in Florida Still Without Power Monday Due to
Hurricane Charley**

**No Full Power for a Week to Ten Days, Florida Utilities Say**

Florida Power and Light Co. still had 339,000 customers in the dark
Monday morning, down from a peak of 874,000 throughout the storm.
Progress Energy Florida, a subsidiary of Raleigh, North Carolina-based
energy company Progress Energy Inc. still had 339,000 -- 360,000
customers without power, down from 502,000 at the peak. The storm
inflicted significant damage to Progress Energy\'s infrastructure,
taking out more than 700 miles of transmission lines \-- equivalent to
the distance between Miami and Jacksonville and back \-- and 80
substations. In addition, the state\'s third-biggest electric company,
Tampa Electric Co., the principal subsidiary of Tampa-based energy
company TECO Energy Inc. said in a statement early Monday it had less
than 20,000 customers without power, down from a peak of 78,000.

Reuters, 1124 August 16, 2004

[*http://www.sun-sentinel.com/news/local/florida/sfl-charleyopenclose,0,7831563.story?coll=sfla-news-florida*](http://www.sun-sentinel.com/news/local/florida/sfl-charleyopenclose,0,7831563.story?coll=sfla-news-florida)

[*http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7BFA943DD8%2DA772%2D4B6F%2DA17C%2D8B65327267F2%7D*](http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid={FA943DD8-A772-4B6F-A17C-8B65327267F2})

[*http://biz.yahoo.com/prnews/040816/nym077_1.html*](http://biz.yahoo.com/prnews/040816/nym077_1.html)

[*http://biz.yahoo.com/prnews/040814/nysa028_1.html*](http://biz.yahoo.com/prnews/040814/nysa028_1.html)

[*http://biz.yahoo.com/bw/040814/145009_1.html*](http://biz.yahoo.com/bw/040814/145009_1.html)

[*http://biz.yahoo.com/bw/040814/145012_1.html*](http://biz.yahoo.com/bw/040814/145012_1.html)

[*http://biz.yahoo.com/prnews/040814/nysa043_1.html*](http://biz.yahoo.com/prnews/040814/nysa043_1.html)

[*http://biz.yahoo.com/bw/040815/155018_1.html*](http://biz.yahoo.com/bw/040815/155018_1.html)

[*http://biz.yahoo.com/prnews/040815/nysu008_1.html*](http://biz.yahoo.com/prnews/040815/nysu008_1.html)

<http://biz.yahoo.com/prnews/040815/nysu013_1.html>
<http://biz.yahoo.com/prnews/040815/nysu014_1.html>
<http://biz.yahoo.com/bw/040815/155025_1.html>

<http://biz.yahoo.com/bw/040815/155026_1.html>

<http://biz.yahoo.com/prnews/040815/nysu026_1.html>

<http://biz.yahoo.com/bw/040816/165362_1.html>

<http://biz.yahoo.com/prnews/040814/nysa051_1.html>
<http://biz.yahoo.com/prnews/040814/nysa044_1.html>
<http://biz.yahoo.com/prnews/040814/nysa030_1.html>
<http://biz.yahoo.com/rc/040816/utilities_progressenergy_outages_2.html>
<http://biz.yahoo.com/prnews/040816/phm025_1.html>
<http://biz.yahoo.com/prnews/040816/clm078_1.html>
<http://biz.yahoo.com/prnews/040816/clm042_1.html>

[*http://biz.yahoo.com/prnews/040816/clm046_1.html*](http://biz.yahoo.com/prnews/040816/clm046_1.html)

Florida Power and Light's Website: [*www.FPL.com*](http://www.FPL.com/)

Progress Energy's Website:
[*http://www.progress-energy.com/storm*](http://www.progress-energy.com/storm)

Tampa Electric's Website:
[*http://www.tecoenergy.com*](http://www.tecoenergy.com/).

**North Carolina Hit Hard be Hurricane Charley Also**

Progress Energy crews worked through the night restoring power outages
caused by Hurricane Charley. At the peak of the storm at 2:45 p.m.
Saturday, more than 112,000 Progress Energy Carolinas customers were
without electricity. By 10 a.m. Sunday, crews had restored more than
84,000 of those customers. North Carolina\'s electric cooperatives are
reporting 30,270 customers without power as a result of Tropical Storm
Charley.
<http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/08-15-2004/0002231832&EDATE>=

<http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/08-14-2004/0002231715&EDATE>=

**Electricity**

**See Highlights / Major Developments above concerning Hurricane Charley
outages.**

**Exelon Shuts Illinois Dresden 2 Nuke for Work**\
Exelon Corp. shut the 800 megawatt Dresden 2 nuclear unit in Illinois to
fix a cracked footing on the main generator, a company spokesman said
Monday. <http://biz.yahoo.com/rc/040816/utilities_exelon_dresden_2.html>

**Exelon Cuts Back at Pa. Peach Bottom 2 Nuke**\
Exelon Corp. reduced power at its 1,110 megawatt Peach Bottom 2 nuclear
unit in Pennsylvania to about 36 percent of capacity late Sunday to
perform some work, a spokesman said Monday. The spokesman said the
unit\'s output would remain reduced to repair an electrical issue with a
reactor recirculation pump. The company was required to reduce the
plant\'s output after taking the pump out of service. The spokesman said
the company was still investigating the cause of the pump problem and he
could not project when the unit would return to full power.
<http://biz.yahoo.com/rc/040816/utilities_exelon_peachbottom_2.html>

**Millstone 3 Nuclear-Power Plant at Full Power, Company Says** Dominion
Resources' 1,150 MW Millstone 3 nuclear unit powered down on Wednesday
night to replace a valve. The plant is now at full power. Bloomberg
News, 1230 August 16, 2004

**Progress Sees N.C. Brunswick 1 Nuke Back Soon**\
The remnants of Hurricane Charley shut the 872-megawatt Brunswick 1
nuclear unit in North Carolina on Saturday but the reactor is expected
to return to power soon, a spokesman for Progress Energy Inc. said on
Monday. The spokesman, Mike McCracken, said the storm disrupted the
plant\'s off-site power supply, causing the unit to trip off line. At
the time, the plant had been reduced to about 68 percent of capacity,
down from 90 percent early Friday, due to the effects of Tropical Storm
Bonnie, which passed the plant site on the night of Aug. 12. Bonnie
knocked out a power line near the plant, forcing Progress Energy to
reduce the unit\'s output to about 68 percent of capacity. McCracken
said the company was taking advantage of the outage to perform some
maintenance projects that can only be completed when the plant is shut.
<http://biz.yahoo.com/rc/040816/utilities_progress_brunswick_3.html>

**Entergy sees Louisiana River Bend Nuke Back Soon**\
Entergy Corp. expects its 936-megawatt River Bend nuclear unit in
Louisiana to return to service soon, a spokeswoman said Monday. The
spokeswoman, Diane Park, said she could not comment on an exact date for
the unit\'s return due to competitive reasons, but noted the outage
would likely last \"days, not weeks.\" The reactor tripped on Aug. 15
due to the loss of off-site power from the transmission system. Park
said the company was taking advantage of the outage to perform some
other maintenance that can only be conducted during a shutdown.
<http://biz.yahoo.com/rc/040816/utilities_entergy_riverbend_3.html>

[**Colorado commission approves Xcel Energy\'s wind-power
plan**](http://cmgr.netcontentinc.net/chandler/proxy.aspx?lid=6DECB40B-ED45-4B46-B89B-CFB052BA02B6)
Xcel Energy received approval this week to proceed with a plan that
could triple its wind-power capacity in Colorado by 2007. The Colorado
Public Utilities Commission on Wednesday said Xcel can begin seeking
bids to acquire up to 500 megawatts of renewable- energy resources. Xcel
officials said wind power would most likely make up most of the new
energy capacity. Denver Post, August 13, 2004

**Petroleum**

**FCC Said Down at Citgo Texas Refinery -- Regulator**

A gasoline-producing fluidic catalytic cracking unit was reported to be
out of operation over the weekend at Citgo Petroleum Corp.\'s 165,000
barrel per day refinery in Corpus Christi, Texas, according to a filing
with the Texas Commission on Environmental Quality; the MTBE (methyl
tertiary butyl ether) unit at the refinery was shut down on Saturday and
restarted on Sunday. The filing also said the MTBE unit was not emptied
because \"the No.2 FCC was down.\" In an Aug. 9 filing, the company said
it planned to begin a restart of the No. 2 FCC on the same day. That was
the second restart attempt on the FCC after a first attempt failed on
Aug. 5.

Reuters, 1237 August 16, 2004

**Shell Deer Park Restarts Gasoline Unit - Company**\
A gasoline-producing unit at Shell Oil Co.\'s 340,000 barrel per day
joint-venture refinery in Deer Park, Texas, was restarted on Sunday
after a weekend of maintenance work, according to a refinery spokesman.
The gasoline-producing catalytic cracking unit was shut on Friday
afternoon for \"minor\" maintenance work, said Deer Park spokesman Dave
McKinney. The unit was restarted at 1 p.m. CDT Sunday.
<http://biz.yahoo.com/rc/040815/energy_shell_deerpark_1.html>

**BP\'s Whiting Refinery to Operate at Reduced Levels**

BP Plc, the world\'s second-largest oil company, said its
420,000-barrel-a-day refinery in Whiting,

Indiana, will operate at reduced levels for several days as it assesses
damage caused by a fire on Friday. BP does not expect a \`\`serious
disruption,\'\' company spokesman Toby Odone said. The explosion
occurred in the refinery\'s catalytic hydrotreater unit, which removes
sulfur from

crude and other oil products. The refinery is the biggest in the
Midwest, according to the

U.S. Energy Department. BP operates six U.S. refineries.

Bloomberg News, 0658, August 16, 2004

**IPE Brent Falls on Chavez Victory as Fears of Oil Disruption Ease**

Crude oil prices on London\'s IPE fell Monday after fears of disruption
to

Venezuelan oil supplies eased after President Hugo Chavez\'s victory in
the

referendum there, an IPE Brent dealer said. The result means the
left-wing

populist will stay in power until the next elections in 2006.
[*http://www.platts.com/Oil/News/4974434.xml?S=n*](http://www.platts.com/Oil/News/4974434.xml?S=n)
[*http://biz.yahoo.com/rb/040816/markets_oil_9.html*](http://biz.yahoo.com/rb/040816/markets_oil_9.html)

**Crude Surges to New Highs as Iraq Pumps at Reduced Levels**

Crude prices defied gravity and climbed to new highs Monday, pushed
upwards by events in Iraq, US light crude futures hitting \$46.91/bbl in
pre-open outcry electronic trade, and Brent surging upwards through the
\$44/bbl mark to trade as high as \$44.11/bbl. Pumping of Iraqi crude
from the fields to terminals in the Persian Gulf has continued at
reduced levels, despite predictions to the contrary from Iraqi officials
last week. Port agents reported liftings of Basrah Light crude onto
tankers at Iraq\'s southern export terminals dipped by nearly 450,000
b/d, or 29%, in the week to Aug 15. Loadings for the week averaged
1.125-mil b/d, well below the 1.57-mil b/d average of the previous week.
An extra boost to prices came from news that militiamen loyal to radical
Iraqi Shi\'ite leader Moqtada Sadr had set fire to an oil well in
southern Iraq. The unresolved status of Russian oil giant Yukos also
continued to provide background support. Prices fell back later,
although New York crude futures have remained above \$46/bbl, after
Venezuela\'s National Electoral Council said President Hugo Chavez had
won a referendum that means he will stay in office until the next
elections in 2006.

<http://www.platts.com/Oil/News/3953930.xml?S=n>

**OPEC, Including Saudis, Pump at Capacity, U.A.E Says**

OPEC members including Saudi Arabia this month will pump at full
capacity as members try to bring oil

prices down from record highs, said United Arab Emirates energy minister
Obaid bin Saif al-Nasseri. The nation is operating at its limit of about
2.5 million barrels a day and d the entire Organization of Petroleum
Exporting Countries will produce more than 30 million barrels a day,
al-Nasseri said in a telephone interview from Abu Dhabi.

Bloomberg News, 0900 August 16, 2004

[*Shell to Keep Bakersfield Open Until
March*](http://www.energyintel.com/DocumentDetail.asp?document_id=128585)\
*Royal Dutch/Shell has agreed to keep its Bakersfield refinery open
until Mar. 31, extending by six months its search for a buyer for the
70,000 barrels per day facility. The move temporarily blunts attacks
from key California regulators and lawmakers who charge the refinery\'s
planned closure this October is driven by a desire to increase refining
margins in California.*

*Oil Daily, August 16, 2004*

**Iraq Domestic Pipeline Ablaze Days After Attack**

A domestic oil pipeline in central Iraq was on fire on Monday, three
days after saboteurs attacked it, police and witnesses said. Repair
crews have not been able to reach the sabotaged section near the town of
Mussayyib south of Baghdad because it is partly controlled by an
anti-U.S. militia, they added.

Reuters, 0307 August 16, 2004

**Iraqi Oil Exports Still Reduced to 900,000 bpd**

Iraqi oil exports were still running at half normal rates on Monday
after a Shi\'ite uprising forced Iraq to keep closed a major pipeline
linking its southern oilfields to Gulf export terminals, an Iraqi oil
official said. \"As of this moment, we\'re still loading at about
900,000,\" the official said. Iraq had hoped to sell about 1.8 million
barrels per day (bpd) of Basra Light crude this month from its southern
terminals, which account for all the country\'s exports. Reuters, 0240
August 16, 2004

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# Natural Gas

[Bonnie, Charley\'s Bark Worse Than Bite for US Gas
Markets](http://www.energyintel.com/DocumentDetail.asp?document_id=128541)\
Tropical Storm Bonnie and Hurricane Charley, while dominating headlines
and trading activity last week, ultimately look to be minor footnotes in
the 2004 gas market. The more enduring legacy likely will be the cool
August weather that has cut summer short across many eastern US regions,
and has the gas market caught in a near-term downdraft despite record
crude prices. Natural Gas Week, August 16, 2004

**Storage Injections Continue at Above-Average Pace**\
Multiple bearish factors seemed to converge on Thursday and Friday to
keep downward pressure on the natural gas cash market. As Gulf
production resumed after Tropical Storm Bonnie and Hurricane Charley
made landfall, traders were faced with below normal temperatures,
cooling rains from the storms and a continuation of higher than expected
storage injections. That last item could be the one that has the most
lasting impact, according to Thomas Driscoll of Lehman Brothers. Natural
Gas Intelligence, August 13, 2004.
[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5DZjmnkfnoRThet%3EEvbfej%5B%21](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5DZjmnkfnoRThet>Evbfej%5B!)

**Other**

Nothing to report.

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (8        | Ago**     | Ago**      |
|                               | /16/04)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 46.02     | 44.86     | 31.01      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 5.34      | 5.58      | 4.83       |
|                               |           |           |            |
| **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