Pacific Gas and Electric said the unusual event declared Mondayat its Diablo Canyon Power Plant Unit 1 was terminated at 9:57 a.m.Tuesday morning. It noted that “An Unusual Event” is the lowestlevel of emergency classification as defined by the NRC and doesnot require any emergency action by the general public or anygovernment agency. Throughout the event all reactor safety systemsfunctioned properly and radiation monitors did not detect anyradioactivity above normal background, the utility said. The eventwas terminated after off-site power was restored to the unit anddiesel generators used to power cooling equipment during the eventwere shut off and placed in standby. Offsite power was lostfollowing an electrical short and fire at 12:25 a.m. Monday. Thediesel generators are used to power reactor cooling equipment inthe event of a reactor trip when offsite power is not available.Efforts at the plant are now focused on determining the cause ofthe electrical short and fire and to make repairs.

Conoco said yesterday continued strong crude oil prices, alongwith rising natural gas prices and a “rebound” in its downstreambusiness could result in strong second quarter earnings along thesame lines as the company’s first quarter results, which were thebest in the company’s 125-year history. CEO Archie W. Dunham saidat the company’s annual meeting that strong commodity prices shouldhelp offset the seasonal decline in European natural gas demand. Hedescribed Conoco’s oil and gas production growth outlook as thebest in the industry, with a 4-5% average annual growth rate.Conoco will continue to maintain “strict cost and capitaldiscipline” while generating a 22% production increase between 1998and 2001. Conoco’s operating costs were cut by 20 cents a barrel in1999 “Last year, 50% of our wildcat exploratory wells werepotentially commercial, improving on a 30% success rate theprevious year,” he said. “This year, we plan to drill 25-30 wildcatwells in the Gulf of Mexico, Vietnam, Nigeria and other locations.”

The National Energy Marketers Association (NEM) yesterday laudedefforts by the New York legislature to reduce energy taxation inthe state by $1.2 billion. If Gov. George Pataki signs the measure,New York will begin a four-year phase-out of both the grossreceipts tax (GRT) on energy and the natural gas importation tax.”Taxing competitive energy markets during its infancy is a majorissue that New York and other states are facing. We are pleasedthat New York chose to implement real tax reductions as competitivemarkets are starting to emerge,” said NEM President Craig Goodman,a former director of energy tax policy under Presidents Reagan andBush. “New York is starting to make real progress toward openingits energy markets for competition. By cutting existing energytaxes, the governor and legislature are taking the right steps topromote energy price competition and to increase thecompetitiveness of all business in New York.” NEM is a national,non-profit trade association representing a regionally diversecross-section of wholesale and retail marketers of natural gas andelectricity as well as other energy-related companies.

The American Gas Association (AGA) has created a new web site tohelp natural gas utilities focus more effectively on majorsupermarkets, restaurants and other national and regional accounts -and to inform those customers about new natural gas technologies andpurchasing options. AGA members can sign on to www.thegaschoice.com to access information provided by nationalcustomer account representatives to AGA staff such as preferences fornatural gas equipment and appliances. Supermarkets and other chains”centralize their energy management function at a national or regionaloffice. As a result, local natural gas utilities may not be aware ofthe customer’s current and future equipment and load managementneeds,” said Walter Woods, AGA director of business development. Thewebsite also will have state-by-state updates on opportunities forcompetition and a monthly newsletter, PIPEline.

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