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

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

**ENERGY ASSURANCE DAILY**

**August 1, 2005**

######## Electricity

**Nevada Power Company to Begin 80-MW Expansion at Harry Allen Power
Station**

Nevada Power Company is ready to begin construction of a \$45 million,
80-megawatt expansion project at the Harry Allen Power Station, located
30 miles north of Las Vegas.

[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp%5E%5BedmmkquZUok%7DGJ%7Bbfek%5Cv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp^%5BedmmkquZUok}GJ{bfek\v)

# Utilities Coping With Bottlenecked Coal Shipments

Utilities are coping in different ways with the transportation
bottleneck caused by major repair work being performed on the mainlines
from the coal fields in Wyoming to customers in the mid-west and east.

-   AEP \-- buying coal from other sources, using other fuels where
    possible, selling surplus coal where feasible.

-   Alliant -- curtailing use by buying power in off-peak periods, at
    night and on weekends.

-   Excel -- buying power; increased use of gas-fired facilities;
    developing options with wholesale to reduce electricity levels if
    necessary

Sources:

AEP \--
<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5844472>

Alliant \--
<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5844800>

Excel \--
<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5844929>

### Four Corners Unit 4 Returns to Service

The 740 MW unit 4 at the APS 2,040 MW Four Corners coal-fired generating
station in New Mexico returned to service following an outage to repair
a leaking tube.

Reuters 10:40, August 1, 2005.

**Lennox Unit 4 Returns to Service**

The 535 MW unit 4 at the Ontario Power Generation 2,140 MW Lennox oil
and natural gas-fired generating station in Ontario, Canada returned to
service by early Monday, August 1, 2005.

Reuters 8:30, August 1, 2005.

**Fayette Unit 1 in Texas Shut to Repair Leak**

The lower Colorado River Authority shut the 580 MW unit 1 at the Fayette
Power Project to repair a boiler tube leak.

Reuters 8:41, August 1, 2005.

**Texas Genco's Limestone Unit 1 Seen Back in Service Soon**

The 836 MW unit 1 at the coal-fired generating station of Texas Genco
will be restarted either August 1 or August 2 according to a report the
company filed with Texas regulators.

Reuters 8:06, August 1, 2005.

**Moss Landing Unit 7 Returns to Service**

The 739 MW unit 7 at the 2,498 MW Moss Landing gas-fired generating
station of Duke Energy Corp. in California returned to service by late
Sunday according to a report of the California ISO. The unit had been
shut on July 29, for unplanned reasons.

Reuters 8:06, August 1, 2005.

**Genna Nuclear Generating Station Returns to Service**

The 497 MW Genna nuclear generating station of Constellation energy
Group returned to service by early Monday morning according to a report
of the Nuclear Regulatory Commission.

Reuters 7:24, August 1, 2005.

**Entergy's FitzPatrick Restored to Full Power**

The 825 MW FitzPatrick nuclear generating station in New York had
returned to full power by early Monday morning according to the report
of the Nuclear Regulatory Commission.

Reuters 7:21, August 1, 2005.

**AES's 425 MW Gas-fired Alamitos Unit 6 In California Shut August 1**

Reuters 14:17, August 1, 2005.

**SCE's 555 MW Big Creek Hydro Unit in California Shut August 1**

Reuters 14:17, August 1, 2005.

**Constellation's 325 MW Gas-Fired High Desert Unit in California Shut
August 1**

Reuters 14:17, August 1, 2005.

**AEP's 528 MW Coal-Fired Welsh Unit 2 in Texas Shut July 30**

Reuters 14:17, August 1, 2005.

**OPG's 515 MW Pickering Unit 6 Nuke In Ontario Shut August 1**

Reuters 13:55, August 1, 2005.

**OPG's 494 MW Coal-Fired Lambton Unit 1 In Ontario Shut August 1**

Reuters 13:55, August 1, 2005.

**OPG's 490 MW Coal-Fired Nanticoke Unit 4 In Ontario Shut August 1**

Reuters 13:55, August 1, 2005.

**OPG's 490 MW Coal-Fired Nanticoke Unit 5 In Ontario Shut August 1**

Reuters 13:55, August 1, 2005.

**OPG's 490 MW Coal-Fired Nanticoke Unit 6 In Ontario Shut August 1**

Reuters 13:55, August 1, 2005.

**Petroleum**

**Crude Prices Above \$61 on Death of Saudi Arabia's King Fahd**

Crude for September delivery settled at \$61.57 a barrel on the news of
the death of King Fahd and a worry over supply disruptions following a
spate of refinery fires in the last week. Fires at BP's Texas City and
Murphy's Meraux refineries caused some units to be shut. However, OPEC's
president indicated that price increases were not likely to continue on
the news that Crown Prince Abdullah, who was installed as the new king,
is not likely to make any changes to oil policy.

Reuters 15:28, August 1, 2005

**Cooling Water Problem Shuts ExxonMobil Joliet Refinery**

ExxonMobil shut its 245,000 b/d refinery in Joliet, Illinois Saturday
night when a problem developed in the cooling water system. The company
indicated that repairs are underway and that the facility could be
restarted sometime later during the week of August 1. Although sources
indicate that the shutdown will have an immediate impact on diesel
production, gasoline production can continue for some time since it
relies on blending stocks.

Reuters 12:20, August 1, 2005.

**BP to Restart Production from Schiehallion Field Soon**

On Monday, BP announced that it anticipates production from its 120,000
b/d Schiehallion field in the North Sea should resume within a few days.
The field was shut down following a quickly extinguished fire that
occurred on the offshore facility July 29. Late on July 29, Bp had
indicated that production would resume on Sunday July 31.

Reuters 6:20, August 1, 2005.

**BP to Restart Texas City FCC Unit Soon**

BP expects that it will restart the 36,000 b/d fluid catalytic cracking
unit at its Texas City refinery within the next couple of days.
According to the company, the maintenance work performed on the unit was
not related to the explosion and fire that occurred at the refinery July
28.

Reuters 12:06, August 1, 2005.

**Murphy Will Restart Meraux Hydrotreater Next Week**

On Monday, August 1, 2005, Murphy Oil confirmed that it will restart the
18,000 b/d kerosene hydrotreater sometime early next week. Although the
unit was closed by a fire that occurred on July 28, Murphy stated that
the closure had no impact on production.

Reuters 12:08, August 1, 2005.

OPIS rice Watch Alert 15:52, August 1, 2005.

**Update -- Equipment Outages Lead Valero to Cut Production at Two Texas
Refineries**

The outage of a crude unit at Valero's 260,000 b/d St. Charles refinery
resulted in cutting distillate production by 35,000 b/d while the outage
of a coking unit at the Corpus Christi refinery led to the loss of 2,500
b/d of jet fuel production. A tube failure at the St. Charles refinery
that occurred on July 27 and power failure on July 21 at the Corpus led
to the outages. Valero anticipates that the repairs on the St. Charles
unit should be complete and the unit returned to service sometime August
1, and the repairs on the Corpus Christi unit will take until at least
August 7 to complete.

Reuters 18:40, July 29, 2005

**Natural Gas**

**Florida Gas Transmission Issues Critical Day Warning**

With temperatures throughout Florida expected to be high, Florida Gas
Transmission issued a critical day warning to shippers indicating that
they must stay within 25 percent of their scheduled volumes on Monday,
August 1, 2005.

Reuters 11:35, August 1, 2005.

**Public/Private LNG Deal in California**

The city of Long Beach, California, is negotiating a gas supply deal
with joint venture companies Mitsubishi and ConocoPhillips for a
2.4-mile, 24-inch-diameter pipeline that will be owned by Long Beach.
The pipeline will connect the proposed port-based liquefied natural gas
(LNG) receiving terminal and Southern California Gas Company's
transmission pipeline system.\
[*http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BednojsyZUok%7DGJ%7Bbfek%5Cv*](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BednojsyZUok}GJ{bfek\v)

**EIA Projects Natural Gas Use to Lead Worldwide Energy Demand until
2025**\
The Energy Information Administration\'s (EIA) International Energy
Outlook projects natural gas consumption to increase 2.3% per year, or a
total of 69%, from 92 Tcf in 2002 to 156 Tcf in 2025. This rise marks
the fastest climb of any other energy source over the next 23 years.

Source: NGI's Daily Price Index, August 01, 2005

[*http://intelligencepress.com/*](http://intelligencepress.com/)

**FERC Recommends Approval for Northwest Pipeline\'s Capacity
Replacement Project**

A \$333 million project to replace natural gas delivery capacity on the
Williams\' Northwest Pipeline in western Washington State has been
recommended for approval by FERC.

Source: NGI's Daily Price Index, August 01, 2005

[*http://intelligencepress.com/*](http://intelligencepress.com/)

######## Other News

Nothing to report.

######## Energy Prices 

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (08       | Ago**     | Ago**      |
|                               | /01/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 61.51     | 58.10     | 43.72      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 8.03      | 7.38      | 6.03       |
|                               |           |           |            |
| **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

**ENSEC threat awareness blog site** from Energy Assurance

[*http://ensec.blogspot.com*](http://ensec.blogspot.com/)