Florida grid monitor extends capacity alert on gas supply worries

Washington (Platts)--1Sep2005

The Florida Reliability Coordinating Council Thursday extended for a
second day a generating capacity alert urging electric utility customers to
conserve power and directing utilities to consider emergency supply options
and the use of demand-side reductions, including service curtailments to
interruptible customers. 
     The state grid monitor said the extension of the alert is "due to the
continued uncertainty of restoration of natural gas production facilities in
the Gulf of Mexico." Peninsular Florida, which is the region overseen by the
FRCC, relies on natural gas for about 30-35% of the generating capacity. 
     The FRCC said the two natural gas pipeline companies serving the FRCC
Region, Florida Gas Transmission and Gulfstream, have been fully cooperating
with the FRCC during this natural gas shortage. "Both have been, and continue
to be, fully operational and capable of delivering the natural gas once the
supply is restored to normal levels," the council said.
     The FRCC added that the "timing of the restoration of the natural gas
production facilities in the Gulf of Mexico is still uncertain. Continued
disruption has placed an increased burden on backup fuels, such as distillate
oil. It is anticipated that the consumption of distillate oil will be greater
than the supply chain to replenish it."

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