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

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

**October 27, 2004**

**Highlights / Major Developments**

**Electricity**

**Cinergy signs Indiana clean coal plant deal with GE, Bechtel**

> Cinergy signed a letter of intent with General Electric and Bechtel
> Tuesday to
>
> look into building a commercial-size integrated gasification combined
> cycle
>
> project in Indiana, possibly at PSI\'s aging 160-MW Edwardsport
> coal-fired

plant in southern Indiana, it said.
http://www.platts.com/Electric%20Power/News/6990776.xml?S=n

**Secretary Abraham Announces \$36 Million for Minnesota Clean Coal
Plant; Project Expected to Create A\...**

**Oct 26, 2004 - U.S. Newswire**

DULUTH, Minn., Oct. 26 /U.S. Newswire/ \-- Secretary of Energy Spencer
Abraham, joined by Minnesota Governor Tim Pawlenty and Senator Norm
Coleman today announced that a team effort led by Excelsior Energy Inc.
of Minnetonka, Minn., has been selected by the Department of Energy to
receive \$36 million for the development of one of the cleanest
coal-fired power plants in the world.

The award comes as part of President George W. Bush\'s 2002 Clean Coal
Power Initiative (CCPI) to invest \$2 billion over 10 years to advance
technologies that can help meet the Nation\'s growing demand for
electricity while providing a secure, low- cost, environmentally sound
energy source.

Secretary Abraham noted, \"Clean energy technologies like those
pioneered here mean jobs for this region. It will mean more than 1,000
local construction jobs during the three years it takes to build the
plant, and at least 150 permanent high-tech jobs when commercial
operations commence. The Excelsior plant builds on the significant
progress we have already made toward meeting America\'s growing energy
needs in an environmentally sound manner.\"

Excelsior Energy Inc. and ConocoPhillips will construct and operate the
531-megawatt Mesaba Energy Project in Hoyt Lakes, Minn. The project will
incorporate results from technology studies and lessons learned at the
Wabash River Integrated Gasification Combined Cycle (IGCC) power plant
in Terre Haute, Ind., to reduce costs and improve efficiency and
availability for a next generation, oxygen- blown gasification plant
using bituminous coal. The total cost for the coal-based demonstration
project is \$1.18 billion, of which DOE will contribute \$36 million as
the federal cost share.

The project was one of two selected to demonstrate advanced power
generation systems using IGCC technology, a variation on a natural
gas-fired combined cycle power plant in which a coal- derived gas
(produced by the coal gasifier) replaces the natural gas. In a combined
cycle plant two power generators, or cycles, are used in combination to
generate electricity in a very efficient manner.

The gas from the coal is first passed through a gas turbine to generate
electricity; then the hot gas leaving the turbine is used to heat water
to produce steam to power a steam turbine and generate electricity a
second time. This approach increases the amount of electricity that can
be generated from a ton of coal and does so in an environmentally sound
manner. IGCC promises dramatically increased efficiency and reliability,
improved environmental performance, reduced capital and operating costs,
and flexibility to process both high- and low-rank coals.

The Clean Coal Power Initiative (CCPI)

The Clean Coal Power Initiative, under which this project was selected
for funding, was initiated by President Bush in 2002. CCPI is an
innovative technology demonstration program that fosters more efficient
clean coal technologies for use in new and existing electric power
generating facilities in the United States. Candidate technologies are
demonstrated at full-scale to ensure proof-of-operation prior to
commercialization.

The technologies developed under the CCPI program will help maintain the
Nation\'s abundant coal resources as a cornerstone of our future
domestic energy portfolio, particularly for power generation. The
priorities for this round of competition were technology advancements
for gasification-based electricity production, advanced mercury control,
and sequestration and sequestration-readiness.

Technologies emerging from the program will help meet the President\'s
environmental objectives for America as outlined in the Clear Skies
Initiative (CSI), Global Climate Change Initiative, FutureGen, and the
Hydrogen Initiative. Early CCPI demonstrations emphasize technologies
that apply to existing power plants and construction of new plants.
Later demonstrations will include systems comprising advanced turbines,
membranes, fuel cells, gasification processes, hydrogen production, and
other technologies. CCPI, an industry/government cost-shared
partnership, responds to President Bush\'s commitment to increase
investment in clean coal technology.

Successful implementation of CCPI will solve many of the environmental
issues associated with fossil-fuel use and provide high-efficiency,
low-cost, future generating capacity.

Project Selection Process

All projects selected under Round 2 of the CCPI program underwent an
intensely competitive evaluation process. Evaluation criteria included
the proposer\'s plan to share at least 50 percent of the cost of the
project and a commitment to repayment of the government\'s investment in
the demonstration project. Forty technical DOE evaluators reviewed 13
proposals. While competing for \$300 million in federal funds, the
estimated total cost of the 13 proposals was \$6 billion.
[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp%5EZklormjmWUlh%23%3A%40%24bfej%5B%21](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp^ZklormjmWUlh%23%3A@$bfej%5B!)

**Petroleum**

**Nigerian unions to strike from Nov 4 unless Obasanjo cuts prices**

> Nigerian trade unions will call a nationwide general strike from Nov 4
> if
>
> president Olusegun Obasanjo\'s government fails to lower retail fuel
> prices,
>
> Nigeria\'s blue-collar oil workers\' union Nupeng chief told Platts
> Wednesday. <http://www.platts.com/Oil/News/5197486.xml?S=n>

### OPEC to U.S. -- Use Emergency Oil Reserves

OPEC
([news](http://us.rd.yahoo.com/DailyNews/manual/*http://news.search.yahoo.com/search/news?fr=news-storylinks&p="OPEC"&c=&n=20&yn=c&c=news&cs=nw) -
[web
sites](http://us.rd.yahoo.com/DailyNews/manual/*http://search.yahoo.com/search?fr=web-storylinks&p=OPEC))
took the unprecedented step of urging the United States to tap its
emergency crude reserves to bring down world oil prices.

Purnomo Yusgiantoro, the president of the Organization of the Petroleum
Exporting Countries, said on Wednesday he had approached Washington to
suggest the move to force prices down from \$55 a barrel.

\"We had communication with them. I asked them to use their reserves,\"
Purnomo, Indonesia\'s oil minister, told reporters in Jakarta. He did
not say what Washington\'s response was.

In Washington, a White House spokesman said the Bush administration
would not use the Strategic Petroleum Reserve (SPR) to influence market
prices.

\"We\'ve seen the news reports (about the OPEC request),\" White House
spokesman Trent Duffy said. \"But the Strategic Petroleum Reserve,
we\'ve made it clear, is not to be used to manipulate market prices. It
is America\'s emergency reserve for times of severe market
disruptions.\"

The Bush administration has repeatedly said that the emergency stockpile
exists for a severe oil supply disruption, in line with the policy of
the International Energy Agency (IEA), the group that coordinates policy
on oil reserves for 26 industrialized nations. The U.S. reserve was
created after the 1973 Arab oil embargo jolted the American economy.

Oil\'s 70 percent price rise this year has been fired by rapid demand
growth, particularly from China, that has eaten up most of the spare
capacity held by OPEC producers. A shortage of refining capacity
worldwide also has helped drive up prices.

Purnomo\'s request to Washington is unusual as in the past OPEC has
regarded government stockpiles as a threat to its own market influence.

Before the U.S.-led invasion of Iraq
([news](http://us.rd.yahoo.com/DailyNews/manual/*http://news.search.yahoo.com/search/news?fr=news-storylinks&p="Iraq"&c=&n=20&yn=c&c=news&cs=nw) -
[web
sites](http://us.rd.yahoo.com/DailyNews/manual/*http://search.yahoo.com/search?fr=web-storylinks&p=Iraq))
last year, leading producer Saudi Arabia raised output to prevent a
supply shock and convinced the United States and other consumer
countries that there was no need for a release of their strategic
stocks.

But now the cartel which controls around half world oil exports worries
that sustained higher prices could blunt demand growth by hurting the
world economy and spurring investment in alternative fuels.

\"The OPEC president has the mandate to make unilateral approaches on
behalf of the whole organization,\" said an OPEC official. \"He has
already called on all producers to raise output, so it\'s not really a
departure from that policy. It is an irony though.\"

The last major release of the U.S. SPR, which holds 670 million barrels
of crude, was in 2000 and helped bring an end to a rally that saw prices
jump from \$10 to nearly \$38 in just 20 months.

This autumn Washington has loaned 5.4 million barrels of sweet crude oil
from the emergency stockpile to five refiners to offset supplies
disrupted by Hurricane Ivan in mid-September.

Despite record high prices, the Bush administration has pressed ahead
with filling the underground salt caverns that hold the reserves,
planning to reach full capacity next April.

The IEA said on Tuesday it agreed Washington did not need to suspend
crude oil shipments to its SPR because refineries were adequately
supplied with crude.

\"As far as I know the shipments (to) the reserves are crude, and the
market now does not need additional crude,\" said IEA Executive Director
Claude Mandil.

But Mandil said that an extremely cold winter might warrant a release of
heating oil from consumer country reserves.
<http://news.yahoo.com/news?tmpl=story&u=/nm/20041027/bs_nm/energy_opec_usa_dc_3>

**Natural Gas**

**Other News**

[**IEA: Time to Rethink Energy
Policy**](http://www.energyintel.com/DocumentDetail.asp?document_id=133909)\
With oil prices at record levels, governments must accelerate
technological innovations \"that radically alter how we produce and use
energy\" to create an energy system that is sustainable economically,
socially and environmentally, the International Energy Agency (IEA) said
in its World Energy Outlook 2004.(IEA) said in its World Energy Outlook
2004. Oil Daily, October 27, 2004

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (10       | Ago**     | Ago**      |
|                               | /27/04)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 |           | 54.93     | 29.95      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               |           | 7.27      | 4.56       |
|                               |           |           |            |
| **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

+--------------------------------------------------------------------+---+
| US NRC Shuts Web Access To Scan For Sensitive Information          |   |
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|                                                                    |   |
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| *Dow Jones & Company, Inc. - Oct 26 -*                             |   |
+--------------------------------------------------------------------+---+
|                                                                    |   |
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| > ![](media/image2.png){width="1.4166666666666667in"               |   |
| > height="0.40625in"}CHICAGO -(Dow Jones)- The U.S. Nuclear        |   |
| > Regulatory Commission has shut down its huge Internet-based      |   |
| > public documents library so it can edit out information that     |   |
| > could be helpful to terrorists.                                  |   |
| >                                                                  |   |
| > The NRC said in a late Monday release that its Adams system,     |   |
| > which links to about 700,000 documents, will be down for several |   |
| > weeks. The agency hasn\'t concluded the database still contains  |   |
| > sensitive information, but decided to shut down the system for a |   |
| > review after critics said it did.                                |   |
| >                                                                  |   |
| > \"In an abundance of caution we are going to scrub the           |   |
| > database,\" Burnell said.                                        |   |
| >                                                                  |   |
| > The documents in question included information about nuclear     |   |
| > laboratories at U.S. universities and other sites - not the      |   |
| > nation\'s 103 commercial power reactors, where much larger       |   |
| > quantities of dangerous nuclear material is stored, Burnell      |   |
| > said.                                                            |   |
| >                                                                  |   |
| > The agency removed sensitive information regarding power plants  |   |
| > from public view after the September 11 terrorist attacks and    |   |
| > believes it\'s done a thorough job.                              |   |
| >                                                                  |   |
| > \"We remain very confident that when it comes to information on  |   |
| > power plants, we have properly scrubbed Adams,\" Burnell said.   |   |
| >                                                                  |   |
| > The agency said in the release that it\'s never allowed          |   |
| > classified or safeguarded material on its Web site. The agency   |   |
| > is also suspending access to documents on its Electronic Hearing |   |
| > Docket and certain information related to the high level waste   |   |
| > repository pending further review.                               |   |
| >                                                                  |   |
| > While the system is down, the public can request documents at    |   |
| > the public documents room in the NRC\'s Rockville, Md.,          |   |
| > headquarters. NRC staff will have an opportunity to review       |   |
| > requested documents before releasing them, Burnell said.         |   |
| >                                                                  |   |
| > In a letter to the NRC\'s commissioners Tuesday, David Lochbaum, |   |
| > nuclear safety engineer at the Union of Concerned Scientists     |   |
| > watchdog group, criticized the decision to shut down the         |   |
| > document system, saying the step is unnecessary and hinders the  |   |
| > public\'s ability to participate in licensing proceedings.       |   |
| >                                                                  |   |
| > The NRC did close down its Web site after the September 11       |   |
| > attacks, then brought it back after removing 1,000 documents     |   |
| > with sensitive information. In 2003, it set a standard that no   |   |
| > new or old information on the site should be allowed if it       |   |
| > specifies sensitive materials or locations, Burnell said. A      |   |
| > revision to those rules in 2004 tightened the restrictions to    |   |
| > weed out similar but less detailed information.                  |   |
| >                                                                  |   |
| > NRC guidelines say any information that could be useful, or      |   |
| > could reasonably be expected to be useful, to a terrorist should |   |
| > be withheld. Shutting the Adams system will allow it to further  |   |
| > remove any such information, the agency said.                    |   |
| >                                                                  |   |
| > -By Jon Kamp , Dow Jones Newswires; 312-750-4129;                |   |
| > jon.kamp@dowjones.com                                            |   |
| >                                                                  |   |
| > Dow Jones Newswires 10-26-04 1227ET                              |   |
| >                                                                  |   |
| > Copyright (C) 2004 Dow Jones & Company, Inc. All Rights          |   |
| > Reserved.                                                        |   |
+--------------------------------------------------------------------+---+

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5220286>

+--------------------------------------------------------------------+---+
| Cinergy, GE, Bechtel To Explore Building Coal Power Plant          |   |
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|                                                                    |   |
+--------------------------------------------------------------------+---+
| *Dow Jones & Company, Inc. - Oct 26 -*                             |   |
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|                                                                    |   |
+--------------------------------------------------------------------+---+
| > ![](media/image2.png){width="1.4166666666666667in"               |   |
| > height="0.40625in"}CINCINNATI -(Dow Jones)- A Cinergy Corp.      |   |
| > (CIN) unit, General Electric Co. (GE) and Bechtel Corp. signed a |   |
| > letter of intent to explore building a new coal- gasification    |   |
| > power plant designed to lower pollution levels and reduce costs. |   |
| >                                                                  |   |
| > Earlier this month, GE and Bechtel, an engineering and           |   |
| > construction company, unveiled a plan to offer jointly a         |   |
| > standardized plant package that they expect to become            |   |
| > competitive with other energy sources by the end of the decade.  |   |
| >                                                                  |   |
| > PSI Energy , the Indiana operating company of Cinergy, would own |   |
| > and operate the facility. PSI is considering several sites,      |   |
| > including the site of its coal- fired station in Edwardsport,    |   |
| > Ind. The plant would produce 500 to 600 megawatts of electricity |   |
| > to help meet increased electrical demand over the next decade.   |   |
| >                                                                  |   |
| > In a press release Tuesday, Cinergy said the new plant, called   |   |
| > an integrated gasification combined cycle generating station,    |   |
| > will turn coal to gas and remove most of the emissions before it |   |
| > is used to fuel a turbine generator. The hot exhaust gases are   |   |
| > then used to heat steam, driving a steam turbine generator.      |   |
| >                                                                  |   |
| > According to Cinergy, the technology uses less water and has     |   |
| > fewer emissions than a conventional coal-fired plant, with       |   |
| > pollution control equipment that meets current standards.        |   |
| > Another benefit is the potential to remove mercury and carbon    |   |
| > dioxide upstream of the combustion process at lower costs.       |   |
| >                                                                  |   |
| > A study on whether to go ahead with the project and at which     |   |
| > location is expected to be completed in 90 to 120 days. The      |   |
| > study will assess the economic feasibility of the project, plant |   |
| > performance and output, emissions, and the plant footprint.      |   |
| >                                                                  |   |
| > The companies also will work together during this period to      |   |
| > develop public and government support for the project and a      |   |
| > preliminary execution plan.                                      |   |
| >                                                                  |   |
| > -Judy Lam; Dow Jones Newswires; 201-938-5400;                    |   |
| > AskNewswires@dowjones.com                                        |   |
| >                                                                  |   |
| > Order free Annual Report for General Electric Co.                |   |
| >                                                                  |   |
| > Visit http://djnewswires.ar.wilink.com/?link=GE or call          |   |
| > 1-888-301-0513                                                   |   |
| >                                                                  |   |
| > Dow Jones Newswires 10-26-04 1425ET                              |   |
| >                                                                  |   |
| > Copyright (C) 2004 Dow Jones & Company, Inc. All Rights          |   |
| > Reserved.                                                        |   |
+--------------------------------------------------------------------+---+

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5220290>

In both versions of ECN

+-------------------------------------------------------------------+---+
| Exelon Expects to Meet Regulatory Deadline for York County, Pa.,  |   |
| Nuclear Plant                                                     |   |
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|                                                                   |   |
+-------------------------------------------------------------------+---+
| *Oct 26 - York Daily Record -*                                    |   |
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|                                                                   |   |
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| > Oct. 25\--Peach Bottom Atomic Power Station and Three Mile      |   |
| > Island both expect to meet a Nuclear Regulatory Commission      |   |
| > deadline for upgraded security enhancements.                    |   |
| >                                                                 |   |
| > Exelon Nuclear has spent \$100 million to improve the security  |   |
| > at each of its 10 nuclear power plants, said Craig Nesbit,      |   |
| > spokesman for the utility.                                      |   |
| >                                                                 |   |
| > The company will spend about \$20 million a year to support the |   |
| > installed security upgrades, he said.                           |   |
| >                                                                 |   |
| > \"It was somewhat challenging,\" Nesbit said, \"because we had  |   |
| > a certain amount of time to do a lot of construction. But it    |   |
| > wasn\'t impossible.\"                                           |   |
| >                                                                 |   |
| > In April 2003, the commission ordered all of the nation\'s 103  |   |
| > nuclear power plants to improve security measures against       |   |
| > potential attacks.                                              |   |
| >                                                                 |   |
| > The commission\'s deadline for the added security measures is   |   |
| > Friday, said Diane Screnci, an NRC spokeswomen.                 |   |
| >                                                                 |   |
| > For the last 18 months, Peach Bottom Atomic Power Station has   |   |
| > resembled a penitentiary more than a nuclear power plant.       |   |
| >                                                                 |   |
| > While the NRC did not require the power plants to install guard |   |
| > towers, the power station has put in place 10 to 12             |   |
| > bullet-resistant enclosures, Dana Melia said. Melia is a        |   |
| > spokeswoman for Exelon Nuclear.                                 |   |
| >                                                                 |   |
| > Strategically placed around the plant, the towers will be       |   |
| > manned by security officers and will contain equipment to help  |   |
| > protect the plant.                                              |   |
| >                                                                 |   |
| > Each tower is 25 feet tall and comes equipped with gun          |   |
| > portholes.                                                      |   |
| >                                                                 |   |
| > Like Peach Bottom Atomic Power Station, Three Mile Island will  |   |
| > house six guard towers.                                         |   |
| >                                                                 |   |
| > A tower\'s main advantage is early detection by guards who can  |   |
| > scan a site from a high vantage point, Shawn Kirven said during |   |
| > a recent interview.                                             |   |
| >                                                                 |   |
| > Kirven is vice president of nuclear operations for Wackenhut    |   |
| > Nuclear Services, which supplies security to Exelon\'s nuclear  |   |
| > power plants.                                                   |   |
| >                                                                 |   |
| > Often, the tall towers stand as a deterrent against hostile     |   |
| > activity.                                                       |   |
| >                                                                 |   |
| > Aside from the towers, both power plants have installed \"delay |   |
| > fencing\" designed to create greater standoff distances from    |   |
| > the plant.                                                      |   |
| >                                                                 |   |
| > Delay fencing is a combination of regular fencing, razor wire   |   |
| > and concrete barricades that circle the protected area of the   |   |
| > plant, Melia said. That area includes the reactors.             |   |
| >                                                                 |   |
| > Both plants have upgraded the temporary inspection stations     |   |
| > that guard the main entrances to each site\'s owner-controlled  |   |
| > areas.                                                          |   |
| >                                                                 |   |
| > These areas include auxiliary equipment, offices and training   |   |
| > centers.                                                        |   |
| >                                                                 |   |
| > Each permanent tollbooth-like checkpoint is now shielded so     |   |
| > guards can check vehicles in bad weather, Nesbit said.          |   |
| >                                                                 |   |
| > Three lanes lead up to the checkpoint with one area for workers |   |
| > and another for visitors. The third is a designated vehicle     |   |
| > exit.                                                           |   |
| >                                                                 |   |
| > \"Everyone will still be required to show identification and be |   |
| > on the list,\" Melia said. \"That has not changed.\"            |   |
| >                                                                 |   |
| > NRC officials are in the process of reviewing plans submitted   |   |
| > by each plant that detail how the utilities have attempted to   |   |
| > meet the commission\'s security orders, Screnci said.           |   |
| >                                                                 |   |
| > Increased patrols at each of the plants, better training for    |   |
| > the guards and enhanced coordination with local law enforcement |   |
| > are other criteria the NRC will take into account, she said.    |   |
| >                                                                 |   |
| > The commission will run a series of inspections to verify and   |   |
| > validate that each plant has conformed with the NRC\'s orders,  |   |
| > Screnci said.                                                   |   |
| >                                                                 |   |
| > \"Many of the upgrades are already in place,\" Nesbit said.     |   |
| >                                                                 |   |
| > \-\-\-\--                                                       |   |
| >                                                                 |   |
| > To see more of the York Daily Record, or to subscribe to the    |   |
| > newspaper, go to http://www.ydr.com.                            |   |
| >                                                                 |   |
| > \(c\) 2004, York Daily Record, Pa. Distributed by Knight        |   |
| > Ridder/Tribune Business News. For information on republishing   |   |
| > this content, contact us at (800) 661-2511 (U.S.), (213)        |   |
| > 237-4914 (worldwide), fax (213) 237-6515, or e-mail             |   |
| > reprints@krtinfo.com.                                           |   |
| >                                                                 |   |
| > EXC, ![](media/image3.png){width="4.1666666666666664e-2in"      |   |
| > height="4.1666666666666664e-2in"}                               |   |
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<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5220329>

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5220329>

In both versions of ECN

+--------------------------------------------------------------------+---+
| Plant is Likely to Sail Through PSC Hearings                       |   |
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|                                                                    |   |
+--------------------------------------------------------------------+---+
| *Oct 26 - Deseret News (Salt Lake City) -*                         |   |
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|                                                                    |   |
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| > State regulators Monday heard testimony on a proposed \$330      |   |
| > million natural gas-fired power plant designed to help meet peak |   |
| > summer electricity demand along the Wasatch Front.               |   |
| >                                                                  |   |
| > Known as the Lake Side Power Project, the 534-megawatt plant     |   |
| > will be located on 62 acres at the now defunct Geneva Steel site |   |
| > in Vineyard. A megawatt is enough electricity to power 500 to    |   |
| > 750 typical homes.                                               |   |
| >                                                                  |   |
| > Portland-based PacifiCorp, which operates in Utah as Utah Power, |   |
| > is asking the Utah Public Service Commission to determine that a |   |
| > need exists for the new plant and that the project represents    |   |
| > the best cost and risk to customers.                             |   |
| >                                                                  |   |
| > Donald Furman, a senior vice president at PacifiCorp, said the   |   |
| > Lake Side project is vital in meeting load forecasts.            |   |
| >                                                                  |   |
| > \"Since PacifiCorp\'s ability to get power into the east portion |   |
| > of its system is constrained, the availability of a physical     |   |
| > resource within the Utah bubble is absolutely vital to serve     |   |
| > load in 2006,\" Furman said in filed testimony. \"There is no    |   |
| > margin for error.\"                                              |   |
| >                                                                  |   |
| > PacifiCorp entertained 53 offers by outside parties to build the |   |
| > plant. The bidding process was narrowed to two companies:        |   |
| > California- based Calpine Corp. and Denver-based Summit Energy.  |   |
| > In May, the utility chose Summit to develop the plant.           |   |
| >                                                                  |   |
| > Calpine would have built and operated its plant, but sold the    |   |
| > power to PacifiCorp. Summit\'s proposal makes PacifiCorp the     |   |
| > plant owner, allowing it to earn a rate of return on the         |   |
| > investment.                                                      |   |
| >                                                                  |   |
| > Calpine had vowed to contest PacifiCorp\'s decision, but the     |   |
| > company decided to pull out of the hearings, which will conclude |   |
| > with public comments at 4 p.m. today.                            |   |
| >                                                                  |   |
| > Unlike a highly contentious hearing earlier this year over the   |   |
| > building of the Currant Creek project near Mona, Juab County \-- |   |
| > a separate natural gas-fired plant \-- the Lake Side Power       |   |
| > Project is expected to sail through the regulatory process with  |   |
| > little opposition.                                               |   |
| >                                                                  |   |
| > \"It has all the drama of a Utah presidential election,\" said   |   |
| > Gary Dodge, an attorney for the Utah Association of Energy Users |   |
| > and a critic of PacifiCorp\'s bidding process. \"We have the     |   |
| > exact same concerns we have in Currant Creek. That is, when you  |   |
| > have a utility that persistently self-selects itself and its     |   |
| > affiliates over all other competitors \-- and they\'re both a    |   |
| > competitor and the judge \-- you have to worry that the process  |   |
| > isn\'t producing optimal results.\"                              |   |
| >                                                                  |   |
| > Dodge said UAE has not done a technical analysis of the bidders  |   |
| > involved in Lake Side, and on Monday he waived all cross-        |   |
| > examination of PacifiCorp\'s witnesses.                          |   |
| >                                                                  |   |
| > Furman said PacifiCorp had no predisposition to favor a turnkey  |   |
| > proposal (a resource it owns) over a purchased power agreement   |   |
| > from a third party. Furman added that rates of return on the     |   |
| > Lake Side plant, as well as the Currant Creek plant, were not    |   |
| > needed to assist the company in reaching a \$1 billion earnings  |   |
| > goal by March 2005.                                              |   |
| >                                                                  |   |
| > Commission chairman Ric Campbell asked Furman when PacifiCorp    |   |
| > would build a new coal plant.                                    |   |
| >                                                                  |   |
| > \"We need immediate assets quickly,\" Furman said. \"And gas     |   |
| > plants and wind plants can be put together much more quickly     |   |
| > than a coal plant. Having said that, PacifiCorp is a coal-based  |   |
| > company. . . . I am sure we are going to build a coal plant. I   |   |
| > can\'t tell you exactly when.\"                                  |   |
| >                                                                  |   |
| > E-mail: danderton@desnews.com                                    |   |
| > ![](media/image3.png){width="4.1666666666666664e-2in"            |   |
| > height="4.1666666666666664e-2in"}                                |   |
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<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5220408>

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5220408>

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| Oconee waste tank discharge underscores storage problem             |   |
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|                                                                     |   |
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| *GREENVILLE, S.C. - Oct 26 (The Associated Press) -*                |   |
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|                                                                     |   |
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| > An accidental discharge of 10,000 gallons of water covering spent |   |
| > nuclear fuel rods at an upstate reactor raises concerns about the |   |
| > future storage needs for the material.                            |   |
| >                                                                   |   |
| > The incident occurred when operators at the Oconee Nuclear        |   |
| > Station tried to add water to one pool while simultaneously       |   |
| > draining another. A valve left open allowed water to drain into a |   |
| > storage tank at the Duke Power facility, said Mel Shannon, the    |   |
| > Nuclear Regulatory Commission\'s senior resident inspector.       |   |
| >                                                                   |   |
| > A shift manager, who was supposed to make sure the two operations |   |
| > didn\'t overlap, \"missed it,\" he said. The plant had a bad      |   |
| > procedure, he said.                                               |   |
| >                                                                   |   |
| > Duke Power is analyzing what happened.                            |   |
| >                                                                   |   |
| > \"We\'re going to do whatever we need to do to prevent it from    |   |
| > happening again,\" Duke Power spokeswoman Rose Cummings said.     |   |
| >                                                                   |   |
| > Even if 40,000 gallons drained from the tank to the level of the  |   |
| > drain, several feet of water would still cover the rods, Shannon  |   |
| > said.                                                             |   |
| >                                                                   |   |
| > Still, the incident underscores the national problem of handling  |   |
| > spent nuclear fuel. The Environmental Working Group, for          |   |
| > instance, warns that waste might have to stay at Oconee Nuclear   |   |
| > Station longer than expected because it will have no other place  |   |
| > to go.                                                            |   |
| >                                                                   |   |
| > The Washington-based organization says Oconee Nuclear Station     |   |
| > could end up stuck with the 1,095 metric tons of waste. The group |   |
| > says a nuclear waste repository at Nevada\'s Yucca Mountain will  |   |
| > fill up shortly after it opens in 2010 or 2011 as the Nuclear     |   |
| > Regulatory Commission continues to renew reactor licenses across  |   |
| > the country. That will generate more waste that has nowhere for   |   |
| > it to go, the Environmental Working Group says.                   |   |
| >                                                                   |   |
| > Plans call for Yucca Mountain to take 77,000 metric tons of       |   |
| > waste, but it can hold closer to 120,000 metric tons, Nuclear     |   |
| > Energy Institute spokeswoman Thelma Wiggins said. The industry    |   |
| > group says another repository may be necessary, but not for       |   |
| > several decades.                                                  |   |
| >                                                                   |   |
| > U.S. Sen. Lindsey Graham, R-S.C., says he expects Yucca Mountain  |   |
| > will have enough room to hold nuclear waste for the next 100      |   |
| > years. Earlier this year he won approval for a plan to solidify   |   |
| > and permanently store nuclear material dregs in tanks at the      |   |
| > Savannah River Site in an effort to reduce removal and storage    |   |
| > costs.                                                            |   |
| >                                                                   |   |
| > The United States could follow France\'s lead by expanding        |   |
| > reliance on nuclear energy and cutting down on radioactive waste  |   |
| > through reprocessing, Graham said. About 90 percent of spent fuel |   |
| > rods at Oconee Nuclear Station can be reprocessed, Graham said.   |   |
| >                                                                   |   |
| > \"That\'s probably not the most economical way to generate new    |   |
| > fuel, but it does help you in the waste stream,\" Graham said.    |   |
| >                                                                   |   |
| > Wiggins expects to see more, not fewer nuclear plants.            |   |
| >                                                                   |   |
| > The Nuclear Regulatory Commission has awarded new licenses to 26  |   |
| > of the nation\'s 103 power plants, and the rest are expected to   |   |
| > seek renewals, Wiggins said. At the same time, the industry has   |   |
| > an \"aggressive\" plan to expand by as many as 50 plants by 2020, |   |
| > she said.                                                         |   |
| >                                                                   |   |
| > Eliminating plants could drive up electricity costs, Wiggins      |   |
| > said.                                                             |   |
| >                                                                   |   |
| > \"When you start looking at the cost to consumers, nuclear is the |   |
| > cheapest form of electricity we have, second only to hydro,\" she |   |
| > said.                                                             |   |
| >                                                                   |   |
| > \_\_\_                                                            |   |
| >                                                                   |   |
| > Information from: The Greenville News,                            |   |
| > http://www.greenvillenews.com                                     |   |
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<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5217875>

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| Dominion: Devils Tower Output To Restart By Nov 15                 |   |
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|                                                                    |   |
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| *Dow Jones & Company, Inc. - Oct 26 -*                             |   |
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|                                                                    |   |
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| > ![](media/image2.png){width="1.4166666666666667in"               |   |
| > height="0.40625in"}SAN DIEGO (Dow Jones)\--Dominion Resources    |   |
| > (D) said Tuesday that production from its storm-damaged Devils   |   |
| > Tower field in the Gulf of Mexico will restart by Nov. 15 .      |   |
| >                                                                  |   |
| > The three wells that were producing before the storm will be     |   |
| > restored by that date, and a fourth well near completion before  |   |
| > the storm will be hooked up at the same time, the company said   |   |
| > at a conference hosted by the Edison Electric Institute.         |   |
| >                                                                  |   |
| > Ivan-related outages at fields like Devils Tower have helped     |   |
| > drive the prices of oil and natural gas sharply higher in recent |   |
| > weeks, and companies have been slow to get production back on    |   |
| > line.                                                            |   |
| >                                                                  |   |
| > Earlier Tuesday, Royal Dutch/Shell Group (RD,SC) said the bulk   |   |
| > of its production would be back on line within a week.           |   |
| >                                                                  |   |
| > Dominion owns 75% of Devils Tower, a deepwater facility about    |   |
| > 140 miles southeast of New Orleans . Pioneer Natural Resources   |   |
| > (PXD) owns 25% of the production, and Williams Cos . (WMB) owns  |   |
| > the spar.                                                        |   |
| >                                                                  |   |
| > Production prior to the hurricane was approximately 20,000       |   |
| > barrels of oil and 16 million cubic feet of natural gas a day,   |   |
| > according to a report by Credit Suisse First Boston . The U.S.   |   |
| > consumes about 20 million barrels a day of oil and 60 billion    |   |
| > cubic feet a day of natural gas.                                 |   |
| >                                                                  |   |
| > -By Mark Golden , Dow Jones Newswires; 415-765-6118;             |   |
| > mark.golden@dowjones.com                                         |   |
| >                                                                  |   |
| > Dow Jones Newswires 10-26-04 1432ET                              |   |
| >                                                                  |   |
| > Copyright (C) 2004 Dow Jones & Company, Inc. All Rights Reserved |   |
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<http://pro.energycentral.com/professional/news/gas/news_article.cfm?id=5220289>