What's Happening?
A report by the National Association of Regulatory Utility Commissioners (NARUC) highlights the need for additional natural gas pipeline infrastructure and storage opportunities to meet the growing energy demand in the U.S. The Gas-Electric Alignment
for Reliability task force, formed in 2023, aims to improve coordination between the electric and natural gas sectors to bolster grid reliability. The report includes nine recommendations, such as creating a natural gas readiness forum, developing additional gas pipeline infrastructure, and enhancing market tools to improve supplier performance during extreme weather.
Why It's Important?
The reliance on gas-fired generation and rising electricity demand, coupled with extreme weather events, have sometimes left the power sector scrambling for necessary fuel. Events like Winter Storm Uri in 2021 and Winter Storm Elliott in 2022 highlighted the vulnerabilities in the gas supply chain, leading to energy shortages and blackouts. The report emphasizes the need for harmonization between the electric and natural gas sectors to ensure reliable and affordable electricity service, which is crucial for preventing future outages and enhancing grid resilience.
What's Next?
The report's recommendations provide a starting point for state regulators to consider future steps to enhance reliability. While there was some support for forming a Gas Reliability Organization, similar to the North American Electric Reliability Corp., the task force concluded it was unnecessary. The focus will be on strategic approaches to expand storage investment and improve interoperability between gas and electric systems.
Beyond the Headlines
The report underscores the economic challenges affecting interoperability across the systems, rather than operational ones. The need for continued alignment between gas and electric systems is crucial for strengthening winter readiness and ensuring reliable energy supply.
