The energy industry remained in a high state of alert Tuesday evening and was still assessing the impact of terrorist attacks on the World Trade Center buildings in New York City, the Pentagon in Washington, DC, and in Somerset County, PA, near Pittsburgh. Trading on the New York Stock Exchange, the New York Mercantile Exchange (Nymex), and on the major over the counter energy e-commerce systems, including EnronOnline and IntercontinentalExchange, remained shut down or delayed indefinitely. No major energy outages or curtailments were reported other than those in close proximity to the terrorist attacks in New York City.

Nymex is located in the World Financial Center at One North End Avenue, only a few blocks away from the World Trade Center, and was shut down and evacuated as a precaution. There was no word yesterday evening whether trading would resume today. The New York Stock Exchange said on Tuesday that the main U.S. stock exchanges will not resume trade Wednesday.

“The American Stock Exchange, the Nasdaq Stock Market and the New York Stock Exchange, after consultation with the U.S. Securities and Exchange Commission and in light of the heinous attack on America, have decided to remain closed through Wednesday, Sept. 12,” the New York Stock Exchange said in a prepared statement. “The U.S. markets, after further consultation with the SEC, will announce tomorrow when U.S. equities markets will reopen.”

At least one firm heavily involved in the paper markets for natural gas and power, Cantor Fitzgerald, was located in the World Trade Center near the top of the building. A Texas-based marketer said he was on squawk box with a Cantor Fitzgerald broker yesterday morning, when the broker said he heard an explosion, and then: “We’re seeing smoke out the window. Something is wrong… I think I’d better be going now.”

The Federal Energy Regulatory Commission (FERC) cancelled its regular biweekly Wednesday meeting and gave no word regarding rescheduling.

The Interstate Natural Gas Association of America, which represents the nation’s interstate natural gas pipelines, sent out an advisory urging its members follow procedures to increase security. Pipelines “need to be more cognizant of security related issues” in the wake of these terrorist attacks. These procedures were developed over the last four years by the Federal Bureau of Investigation and other government agencies.

Liz Johnson, a spokeswoman for Duke Energy’s Texas Eastern Transmission, said there was a “heightened sense of security around our compressor stations. People are camping out in gas control and other departments for the duration.”

Tetco spokesman Danny Gibbs said the pipeline was in contact with Brooklyn Union and other New York LDCs to let them know it was standing by and would alter operations as necessary. “I do not know the extent to which the LDCs in the greater New York City area are discontinuing gas service. But as I understand it things are operating under normal conditions for Tetco as well as the other Duke pipelines [Algonquin, East Tennessee and Maritimes]. We are monitoring the situation from gas control in Houston.”

Consolidated Edison of New York said due to damaged equipment in parts of lower Manhattan there were interruptions of natural gas, power and steam services. ConEd said it was working to restore the services.

Duke said its other power and gas divisions were operating normally but also were under a tight security. “We are operating as normally as possible — considering the tragic circumstances that have occurred,” said Duke CEO Rick Priory. “We are working to ensure that the energy infrastructure we provide continues to operate without interruption.”

Kinder Morgan’s Natural Gas Pipeline Company of America (NGPL) froze the status of its flowing gas volumes. “Due to the recent national events, effective immediately the pipeline will no longer accept any changes to confirmed and scheduled volumes,” the pipeline said. “Gas scheduled for today, Tuesday, Sept. 11 will roll forward. This situation will continue until further notice.”

A Nuclear Regulatory Commission (NRC) spokesperson told NGI that the agency has recommended to all the commercial nuclear power plants in the U.S., non-power reactors, nuclear fuel facilities and gaseous diffusion plants to go to the highest level of security “purely as a precautionary measure.” NRC spokesman William Beecher said that there has been “no credible threat, specific or general, against any of these facilities, but the NRC felt it was prudent, given what’s happening in New York and Washington and elsewhere, to recommend that they go to the highest level of security.” Beecher noted that all 103 commercial nuclear power plants in the U.S. were designed with their containments sufficient to withstand a direct hit from an airliner.

A spokesman for the Edison Electric Institute, which represents the nation’s investor-owned electric utilities, said no incidents had been reported, but extra precautions were being taken. “We are getting reports from a number of our companies that while we’re aware of no specific threats against the nation’s electricity infrastructure, utilities are taking appropriate precautions — namely, increasing security at electric facilities, both generation and transmission, and in some instances, non-essential employees are being released as appropriate,” he said. “What we are hearing is that security at all types of facilities, whether they be nuclear or fueled otherwise, that security precautions are being taken.”

Commercial operations in many major metropolitan areas were brought to a standstill as most people were told to go home. The Federal Aviation Administration grounded all of the nation’s airplanes. Energy companies throughout Houston sent nonessential personnel home and closed for the day. El Paso, Dynegy and Enron said their buildings in Houston were closed.

“We have every reason to believe the building is safe,” said an Enron spokeswoman. “I think employees would feel better being home with their families.”

Several traders noted that without Nymex functioning, the financial side of the energy market was unable to get anything done. “Some physical deals were done, but at least one large marketing company sent their physical traders home before they had a chance to put in their noms. This will certainly create a paperwork nightmare as well as imbalances on the various pipes. If it becomes a prolonged event, then it might necessitate shut-ins at the gas plant level.”

Two aircraft crashed into the World Trade Center in what President Bush called an “apparent terrorist attack.” Both of the twin towers collapsed. There also was an explosion at the Pentagon caused by what many believe was a plane crash. In addition, news services were reporting another commercial airliner down near Pittsburgh. The White House and many other federal buildings in Washington, DC, were evacuated and a state of emergency was declared in the District.

Stocks fell sharply on stock markets overseas and in Canada on the Toronto Stock Exchange and are expected to be off a hundred points or more when trading resumes on the New York Stock Exchange, NASDAQ and the American Stock Exchange.

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