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

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

**September 7, 2004**

**Highlights/Major Developments**

**Hurricane Frances Update from The Office of Energy Assurance Situation
Report**

To read Office of Energy Assurance's (OEA) latest Hurricane Frances
Situation Reports click the following link. Some highlights from the
latest report are included in this report.

<http://www.ea.doe.gov/hurricane_frances.html>

**ELECTRIC INFORMATION (Report based 12PM 9/7/04 Florida EOC
information)**

1.  • Currently, some 2.222 million Florida customers are without power
    down from 2.284 million in the September 7 10AM Situation Report.
    25% of Florida electricity customers remain without power.

> \- Florida Power and Light (FPL) is reporting 1.172 million customers
> remain without power down from 1.214 million. Over 73% of FPL
> customers now have power. Some 27% of customers remain without power.

1.  \- Progress Energy is reporting 418,216 customers without power down
    from a peak of 832,898 on Monday as reported on the utility's
    website. 28% of their customers remain without power. - - More than
    9,000 workers are assisting with power restoration.

    \- Tampa Electric Company (TEC) is reporting 120,000 customer
    outages down from 207,000 reported on 9/6/04. The company estimates
    that it will take 10-14 days to restore power to 95% of its
    customers. 19% of TEC customers remain without power.

    \- Municipal utilities are reporting a total of 295,465 customers
    (24%) without power. (9/6/04 9 PM).

    \- Cooperative utilities are reporting a total of 216,453 customers
    (26%) without power.

• Georgia now has 465,000 customers without electricity (Georgia Power,
350,000; and EMC, 115,000.)

• Alabama is currently reporting 25,000 customers without power.

**OIL AND GAS INFORMATION**

1.  • OEA coordinated efforts with the EPA to contact fuel terminals at
    ports affected by Hurricane Frances. Based on information obtained
    from these calls, EPA is expected to issue a decision regarding last
    week's waiver through 9/15/04 to companies supplying low vapor
    pressure gasoline and low sulfur diesel in Florida.

    • The port at Jacksonville is still closed to traffic. Gasoline and
    low-sulfur diesel fuel supplies are adequate for most companies; one
    company has low supplies of both gasoline and diesel supplies. Port
    Canaveral is still closed to vessels and is not expected to open
    until Wednesday morning.

    • The port at Tampa is operating with restrictions. A number of
    markers were lost to the storm and ships must navigate in daylight
    hours only. Demand at the terminals is double normal levels as extra
    trucks are loading up on product. The tank terminals for most
    operators do not have sufficient supply of gasoline and diesel to
    meet demand.

    • Port Everglades is operational. Most terminals are in good shape
    with both gasoline and diesel supplies.

    • Port of Panama City is open. Two gasoline barges are expected to
    arrive tomorrow.

    • The Central Florida Pipeline that runs from Tampa to Orlando is
    being inspected today. They expect peripherals like satellite dishes
    to be damaged but not enough to delay start-up of the main line
    later this afternoon.

    • Florida Gas Transmission reports that compressor stations are up
    and running. The passage of the storm has created an increase in
    demand. They have taken an operational measure to maintain line
    pack, issuing an Overage Alert Day that asks shippers to keep their
    nominations and physical requirements within a 25% tolerance range.

# STORM TRACK 

The current storm track for Hurricane Ivan is available at:

[http://www.nhc.noaa.gov/ftp/graphics/AT09/refresh/AL0904W+GIF/071503W.]{.underline}

[Hurricane
Tracker](http://www.nhc.noaa.gov/refresh/graphics_astorm9+shtml/071503.shtml?)

There are also many press reports on Hurricane (now Tropical Storm)
Frances. Here are links to some of them. The information reported in the
Energy Assurance Daily above does not come from press reports, but comes
from information collected from the Florida State Emergency Operations
Center and by other Federal, State and local officials monitoring and
coordinating response and restoration efforts.

<http://biz.yahoo.com/bw/040906/65109_1.html>

<http://biz.yahoo.com/prnews/040906/nym048_1.html>

<http://biz.yahoo.com/prnews/040906/nym041_1.html>

<http://biz.yahoo.com/prnews/040906/nym026_2.html>

Wall Street Journal, September 7, 2004, page 7

**Electricity**

**See Highlights / Major Developments for details (and links to
additional details) on outages related to Hurricane Frances.**

# FPL Sees Fla. St Lucie Nukes Shut For a Few Days, Progress Crystal River 3 Shut

FPL Group Inc. expected to keep its two 839 megawatt Saint Lucie nuclear
power units shut until near the end of the week as the counties
surrounding the plant restore their emergency response systems following
the effects of Hurricane Frances. FPL shut the station before hurricane
force winds hit the plant site on Sept 4. Meanwhile, Progress Energy
Inc.'s 842-megawatt Crystal River 3 nuclear power unit in Florida
automatically shut on Sept. 6 due to the partial loss of off-site power,
the company told the U.S. Nuclear Regulatory Commission in a report.
Electricity traders suggested Crystal River was knocked out due to the
effects of the hurricane. The Crystal River station is located in Red
Level, Florida, about 85 miles north of Tampa, Florida.

Reuters, September 7, 2004
<http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh11443_2004-09-07_12-59-39_n07373730_newsml>

**Duke\'s S.C. Oconee 1 Nuke Returning to Full Power**

Duke Energy repaired its 846 megawatt Oconee 1 nuclear unit in South
Carolina over the weekend and was increasing power at the unit by early
Tuesday, a plant spokeswoman said. The spokeswoman said the company
reduced power for unscheduled maintenance and inspections over the
weekend. On Friday, the unit was operating at full power.

Reuters, 0726 September 7, 2004

Reuters, 1422 September 7, 2004

**U.S. West Power Prices Rise as Calif. Demand Soars**

Spot power prices in the West were higher on Tuesday with California
leading the advance as a heatwave was seen as possibly triggering record
demand. \"The last few days I have been looking at the load forecast

(for California) and it has been up, up, up and up,\" one dealer
commented, noting heat was sparking the rise in demand. The California
Independent System Operator was forecasting a peak load on Wednesday of
45,374 megawatts, up from an expected 44,580 MW on Tuesday and the
current all-time high of 44,872 MW, which was set last month. In
generation news, the California Independent System Operator reported
3,694 megawatts out of service early Tuesday, up 1,174 MW from 2,520 MW
late Friday. The most significant addition to the outage list was the
493 MW Unit 7 at the Redondo gas-fired plant.

Reuters, 1334 September 7, 2004

**AES's Redondo 7 Plant Out Since Sunday**

AES's 493 Megawatt gas-fired Redondo 7 unit was shutdown Sunday.

Reuters, 1334 September 7, 2004

**DTE\'s Michigan Fermi 2 Nuke Cut to 23 Pct Power**

DTE Energy Co.\'s 1,130 megawatt Fermi 2 nuclear unit in Michigan was
cut to 23 percent of capacity by early Tuesday, the Nuclear Regulatory
Commission said in its power reactor status report. On Friday, the unit
was operating at full power.

Reuters, 0729 September 7, 2004

**Entergy\'s N.Y. Indian Point 2 Nuke Exits Outage**

Entergy Corp.\'s 951 megawatt Indian Point 2 nuclear unit in New York
exited an outage over the long Labor Day weekend and was operating at 70
percent of capacity by early Tuesday, the U.S. Nuclear Regulatory
Commission said in its power reactor status report. On Friday, the unit
was operating at 5 percent of capacity.

Reuters, 0716 September 7, 2004

**Power Watch Issued in CA for Tuesday September 7th**

The late summer heat wave and a wildfire in the Santa Rosa area have
forced generation units and transmission lines out-of-service, and
resulted in the California Independent System Operator (California ISO)
issuing a Power Watch declaration for Tuesday, September 7. According to
the California ISO, the Geysers Fire is affecting the power supply in
the Santa Rosa area because 400-megawatts of geothermal generating units
and four high-voltage transmission lines were taken off-line as fire
fighters continue to battle the blaze. As a result of the reduction in
transmission capacity into the area, the ability to maintain the
integrity of the local system is at-risk. If the local system is
compromised, local outages may be necessary to protect the customers in
the impacted area. PG&E continues to take protective measures to ensure
local energy reliability, including asking medium and large businesses
to voluntarily reduce their electricity usage and attempting to bring
power into the area and working in close coordination with the
California Department of Forestry and Fire Protection. The need for
conservation in the Santa Rosa area will be critical all day, especially
between 12 noon to 7:00 pm

PRNewswire, 1412, September 7, 2004

**NERC Seeks Comments on Latest Draft of \'Version 0\' Reliability
Standards**

The North American Electric Reliability Council (NERC) has posted on its
website ([www.nerc.com](http://www.nerc.com/)) the second draft of its
"Version 0" reliability standards.

Power Market Today, September 7, 2004

<http://intelligencepress.com/subscribers/power/pm20040907.html>

**Petroleum**

## 

# U.S. Retail Gasoline Falls to Four-Month Low of \$1.85 Per Gallon

The U.S. Energy Information Administration reported that the continued
decline of gasoline leaves the average price the lowest since May 3.

Bloomberg News, 1649 September 7, 2004

# 

# Crude Oil Falls as Storm Misses U.S. Gulf Production Platforms

Crude oil futures in New York fell after Hurricane Frances missed U.S.
offshore production facilities in the Gulf of Mexico, easing concern
that supplies would be disrupted. Oil workers returned to platforms
after the hurricane, which crossed Florida during the weekend.

Bloomberg News, 1119 September 7, 2004

**Oil Eases as Saudi Offers Big Discounts**

Oil prices eased on Monday as top world exporter Saudi Arabia slashed
prices for its westbound crude sales in an effort to shift the large
volumes it is offering to cool world markets. Prices fell as Saudi
Arabia cut prices for October-loading crude to both the United States
and Europe, following up on its pledge to give customers all the crude
they want to try cool oil prices. Prices for heavier grades were cut
particularly hard, as the kingdom tries to make them more attractive for
refiners who are put off by their high yield of low-value fuel oil. The
Saudi pledge has failed to bring prices down much as refiners are not
keen to take heavy grades that make up most of the extra Saudi supply.
They want lighter grades, which yield more high-value products like
gasoline. Prices are more than \$4 below a peak hit last month after
big-money speculative funds took profits from a rally that has pushed
prices 40 percent higher this year.

Reuters, September 6, 2004

<http://biz.yahoo.com/rb/040906/markets_oil_5.html>

**Iraq Northern Oil Pipeline Fire Still Burning**

A fire on Iraq\'s northern export pipeline was still burning on Tuesday,
five days after saboteurs blew the line apart. The fire was extinguished
briefly on Monday but re-ignited by saboteurs and was being left to
burn, a Reuters witness who visited the scene said. The line had been
reopened in late August for the first time since the end of May and was
pumping 600,000 barrels a day to the Turkish export terminal of Ceyhan.
Supplies were flowing normally on Tuesday at about 1.7 million bpd from
Iraq\'s southern Basra fields, an Iraqi official said.

Reuters, 0532 September 7, 2004

<http://biz.yahoo.com/rb/040904/energy_iraq_2.html>

**Natural Gas**

**NTSB Reports Gas Pipeline Fatalities Up Slightly in 2003**

Overall transportation fatalities in the United States fell in 2003, but
the number of deaths caused by explosions or other malfunctions on
natural gas pipelines went in the opposite direction, according to the
National Transportation Safety Board (NTSB).

NGI's Daily Gas Price Index, September 07, 2004

<http://intelligencepress.com/>

**Total Inks 20-Year Deal for 1 Bcf/d of Send-out Capacity at Sabine
Pass LNG Terminal**

A subsidiary of Paris-based E&P giant Total has signed a 20-year
agreement with Cheniere Energy Inc. for 1 Bcf/d of regasification
capacity at the proposed Sabine Pass, LA, liquefied natural gas (LNG)
import terminal, which received a favorable draft environmental review
by the Federal Energy Regulatory Commission last month.

NGI's Daily Gas Price Index, September 07, 2004

<http://intelligencepress.com/>

**Other News**

Nothing to report.

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (         | Ago**     | Ago**      |
|                               | 9/7/04)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 43.18     | 42.23     | 28.93      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 4.32      | 5.04      | 4.76       |
|                               |           |           |            |
| **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