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

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

**ENERGY ASSURANCE DAILY**

**November 23, 2005**

## Highlights/Major Developments

**Update: Hurricanes Katrina, Rita, and Wilma**

For damage assessment and restoration efforts concerning hurricanes, see
the Gulf Coast Hurricanes situation reports from the Office of
Electricity Delivery and Energy Reliability (OE) of the U.S. Department
of Energy @
[[http://www.oe.netl.doe.gov]{.underline}](http://www.oe.netl.doe.gov/).
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/ooc/press/2005/press1118.htm>

For the latest statistics on shut-in oil and gas production and pipeline
status in Louisiana, please click on the following link:
<http://dnr.louisiana.gov/sec/execdiv/pubinfo/daily-onshore-prod.ssi>

######## Electricity

**LIPA Gains Approval for Neptune Connector**

The Long Island Power Authority (LIPA) gained the approval of the New
York Public Service Commission (PSC) to construct the 345 kV Newbridge
Road Connector transmission line that will receive power from the
Neptune Regional Transmission System and transmit the energy throughout
the LIPA system. The PSC found that the line will met the public need
and is environmentally acceptable.

Source: NGI's Power Market Today, November 22, 2005.

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=6113912>

**OPG's 515 MW Pickering 4 in Ontario Shut November 22**

The unit shut November 22 for a "short outage" according to a company
spokesman.

Reuters 15:50 November 23, 2005

**Dominion Resources 539 MW Kewaunee Nuclear Station in WI Shut November
21**

The station was shut Monday night after moisture was found in an
electrical generator.

Reuters 15:50 November 23, 2005

**Excelon's 850 MW Dresden Unit 2 in Illinois at 88 Percent November
23**

According to the NRC the unit was as 20 percent on Tuesday.

Reuters 15:50 November 23, 2005

### California Energy Commission Cites Critical Need for Infrastructure Upgrades

The Integrated Energy Policy Report approved by the California Energy
Commission on November 21 is the key energy planning document for the
state. The document stressed that unless there are upgrades to the
energy infrastructure in the state, California may not be able to meet
near-term increased demand.

Source: Natural Gas Intelligence, November 22, 2005.

[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BfgiiptsXUhd%22EN%26bfek%5Cv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BfgiiptsXUhd"EN%26bfek\v)

### New California Standards Preclude Use of Conventional Coal-fired Generation

Another key element in the Integrated Energy Policy Report just approved
by the CEC (see preceding article) restricts the purchase for use in
California of electricity produced by conventional coal-fired generation
facilities, wherever they are located. The policy will allow
out-of-state purchases from only those coal-fired plants that meet the
same standards as a natural gas-fired facility.

Source: Casper Star-Tribune, November 22, 2005.

<http://www.casperstartribune.net/articles/2005/11/22/news/wyoming/98ba3c3d1f4f6260872570c10003f423.txt>

######## Petroleum

### Changes in RFG Specs Poses Problems for Europe - U.S. Arbitrage Opportunities

Opportunities for European gasoline that meets U.S. reformulated
gasoline (RFG) specifications are likely to become more problematic with
the banning of MTBE. At present, because New York has banned MTBE, the
NYMEX RFG contract can only be delivered to New Jersey. MTBE has been
banned in New Jersey beginning in 2007, and when that ban goes into
effect, it will become more difficult for European RFG products to enter
the U.S. since most contain MTBE.

Report at
[http://www.platts.com/Request%20More%20Information/](http://www.platts.com/Request More Information/)

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

### Gasoline Tanker Fire Closes Interstate Near DC

A gasoline tanker truck burned for nearly two hours after the driver
noticed a problem with one of the rear wheels. Although there were no
injuries, traffic was snarled on I95 near Washington, DC on one of the
busiest travel days of the year. An investigation is underway to
determine the cause of the fire.

Source: Associated Press, November 22, 2005.

<http://www.cnn.com/2005/US/11/23/tanker.fire.ap/index.html>

**Rising Demand Will Outpace Refinery Expansion Plans -- Reuters
Survey**

A Reuters survey found that refinery expansion plans call for the
addition of approximately 1.0 million b/d of new capacity by 2010.
However, citing numbers from the Department of Energy, Reuters states
that where as the gap between domestic capacity and total demand is
currently about 3.5 million b/d, demand is expected to increase to the
point where the gap will widen to approximately 4.6 million b/d by 2010.

Reuters 13:43, November 23, 2005.

######## Natural Gas

### Natural Gas Production Drops Only 6 Percent in Third Quarter -- Survey

According to a survey conducted the Gerdes Group, despite the extensive
damage to natural gas production infrastructure from hurricanes Katrina
and Rita, production of natural gas during the third quarter of 2005
dipped only by about 6 percent from the level of the second quarter and
from the third quarter production level set in 2004.

Source: Natural Gas Intelligence, November 22, 2005.

[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BfgiiptsXUhd%22EN%26bfek%5Cv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BfgiiptsXUhd"EN%26bfek\v)

**Imperial Oil Ltd Prepared to Start Mackenzie Pipeline Hearings**

In a letter to the National Energy Board, Imperial Oil Ltd, indicated
that after a long delay, it is ready to begin public hearings into the
proposal for the \$5.9 billion Canadian gas pipeline. The company
cautioned that it has yet to make agreements with the Deh Cho First
Nation.

Reuters 14:16 November 23, 2005

**Update: KeySpan to Aid Corning Natural Gas Customers**

KeySpan has volunteered to insure that customers of Corning Natural Gas
receive adequate supplies of natural gas in December. In late October,
the New York Public Service Commission took what it called
"extraordinary actions" regarding Corning's lack of preparedness with
respect to gas storage and issues of reliability. (See EAD, October 31,
2005, page 4.)

Reuters 14:47, November 23, 2005.

######## Other News

# Nothing to Report

######## Energy Prices 

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (11       | Ago**     | Ago**      |
|                               | /23/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 58.35     | 57.85     | 49.14      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 11.02     | 11.03     | 5.01       |
|                               |           |           |            |
| **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 10:30 am (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 12:00 noon (Eastern time) on Wednesday for Thanksgiving
week*