Better gas industry sharing of operational data among US industry group's recommendations

Among a set of recommendations for enhanced coordination between the gas and power sectors in the US are more gas industry sharing of production and pipeline operations and an analysis by the Department of Energy or the Federal Energy Regulatory Commission of gas infrastructure to feed gas-fired generators.

The 19 recommendations are being discussed in a series of meetings this summer by the North American Energy Standards Board forum on gas-electric harmonization. The group has been meeting regularly for nearly a year and is narrowing down a set of policy calls for improved communication between the two industries, with a recent emphasis on enhanced transparency of gas industry operations.

Several of the recommendations involve more sharing of production and pipeline capacity availability with the power sector and state and federal regulators to avoid gas-fired generator outages tied to gas system operations during periods of extreme weather and high gas demand.

For example, one recommendation calls for gas producer trade groups to work with producers on sharing real-time production data to improve communications and situational awareness for bulk power system operators, potentially through the DOE Argonne National Laboratory. Another involves the Argonne lab working with pipelines and grid operators to make operational data broadly accessible to market participants in both industries.

The recommendations are laid out in a "strawman" proposal from the leaders of the NAESB forum that is trying to narrow down actions to improve gas- and power-sector coordination as directed by FERC and the North American Electric Reliability Corp.

One of the recommendations says the DOE or FERC should conduct, fund, or direct a study that evaluates if there is adequate gas storage and pipeline infrastructure in place to support new gas usage patterns affected by steeper ramping needs of gas-fired generators to support intermittent renewable resources. "Currently, there are no comprehensive regional assessments that examine whether regions have the sufficient natural gas infrastructure to support new usage patterns of gas generators, yet this information is essential for policymakers to have so that they can make informed policy decisions and take steps to avoid any potential reliability and resilience risks that accompany the transition to a lower emissions energy future," according to the document.

Different levels of support

Reflecting the disagreements between generators and the gas industry throughout the NAESB forum process, the strawman recounts different levels of industry support for some of the recommendations leading up to the document formation. For instance, a suggestion for regulatory requirements on gas-fired generators to show evidence of firm supply/transportation arrangements or dual-fuel capability as part of resource adequacy planning received 87% support from wholesale gas industry participants but only 40% from wholesale power sector participants.

Conversely, enhanced sharing of gas industry information and operational data showed 33% support from wholesale gas respondents and 85% support from wholesale power sector respondents.

Because limited data on intrastate pipeline operations in Texas has been noted by NAESB forum participants during severe winter weather that has affected gas-fired generators, one of the recommendations is for state regulators to engage with producers and intrastate pipelines to ensure gas system operations can meet power grid reliability needs during periods of high gas demand.

Another recommendation would have FERC or power grid operators adopt steps for multiday generation unit commitments to better enable the power sector to provide reliable service during events when demand is expected to rise sharply for gas and electricity. Speakers during some of the NAESB forum meetings have noted that independent system operators are considering such steps following winter storm events in 2021 and 2022.

The leaders of the NAESB forum expect to submit a report to FERC and NERC as the meetings conclude, and they encouraged participants to review the recommendations. "We particularly seek your feedback on how to shape these recommendations so that they are clear, actionable, and fully address the lingering issues that are at the core of this inquiry," they said in the strawman document.

The NAESB forum was started after a joint report from NERC and FERC on the February 2021 winter storm that caused blackouts and gas supply problems in Texas and soaring gas prices in much of the Midwest. It also gained input following the December 2022 winter storm that brought blackouts to the Southeast US, gas production declines in Appalachia, and force majeure events on interstate pipelines.