USA: The United States will need additional natural gas pipelines and storage capacity to maintain electricity reliability amid rising demand and increased reliance on gas-fired power generation, according to a new report from the National Association of Regulatory Utility Commissioners (NARUC). The findings come from NARUC’s Gas-Electric Alignment for Reliability (GEAR) task force, established in 2023 to examine how the two sectors can better coordinate operations.
The task force issued nine recommendations but did not endorse creating a dedicated Gas Reliability Organisation, nor did it call for changes to gas-electric market schedules or standard force majeure provisions. Instead, it emphasised improved harmonisation between the sectors, citing lessons from recent extreme-weather events.
Electric grids in Texas and the eastern United States have experienced major disruptions in recent years due in part to shortages of gas supply during winter storms. During Winter Storm Uri in 2021, power cuts affected gas production and transportation facilities, limiting fuel availability for gas-fired plants. In Winter Storm Elliott in 2022, gas supply issues contributed to 20 % of unplanned generation outages.
The GEAR report recommends developing additional gas pipeline infrastructure and new storage opportunities, creating a natural gas “readiness forum”, adopting market tools to improve supplier performance in extreme weather, and expanding demand-response options for gas utilities. It also suggests market changes to encourage the release of unused pipeline capacity.
Although some participants expressed interest in forming a national reliability organisation for gas infrastructure, most concluded that such a structure would not be the most effective approach at this time.
NARUC said the recommendations offer a starting point for regulators as they consider measures to strengthen gas-electric system reliability.
Source: Prometheus Institute
