US, states eye recommendations on gas-electric interdependency

Washington (Platts)--6Feb2012/454 pm EST/2154 GMT


The US Federal Energy Regulatory Commission and the National Association of Regulatory Utility Commissioners plan to recommend ways to improve the coordination of generation and natural gas supplies to avoid power outages such as the one that struck the Southwest during a February 2011 cold snap, commissioners said Sunday.

FERC Chairman Jon Wellinghoff and Commissioners John Norris and Cheryl LaFleur participated in a discussion of the topic with state utility commissioners at NARUC's winter meetings in Washington. After the dialog, which featured a grid operator and power industry response to a simulated gas shortage that limited electricity supplies, NARUC spokesman Rob Thormeyer said FERC and NARUC will discuss possible recommendations at future meetings. There is not timeline for action, however.

Meanwhile, Commissioner Philip Moeller on Monday issued a request for comments on coordination between the natural gas and electricity markets.

Article continues below...


Request a free trial of: Inside FERC Inside FERC
Inside FERC

Inside FERC is the authoritative guide to gas pipeline regulation and the agency's role in reshaping the electric utility industry and has covered the Federal Energy Regulatory Commission for more than 25 years.

Request more information about Inside Ferc Purchase a subscription to Inside Ferc

"Although comprehensive solutions may take longer to implement, we must make actual improvements to the system now," Moeller said in taking an overtly public posture on the issue. "Thus, national and regional policies need to be advanced prior to the next heating season."

Asking for industry input on best practices, Moeller wants commenters to address issues including the appropriate role of FERC in overseeing better coordination; what duties, if any, should be delegated to the North American Electric Reliability Corporation or other entities; and differences in the handling of coordination between organized and bilateral power markets.

--Martin Coyne, martin_coyne@platts.com