National Grid, Con Edison, other utilities urge FERC to consider gas pipeline reliability measures
A group of electric and gas utilities on Friday urged the Federal Energy Regulatory Commission to launch an inquiry to consider options for improving gas pipeline reliability.
Increased demand and extreme weather in the last decade have stressed the interstate gas transportation and storage system and reduced pipeline companies' operational flexibility, according to a filing at FERC by four National Grid utilities — Boston Gas, Brooklyn Union Gas, KeySpan Gas East and Niagara Mohawk Power — along with Consolidated Edison Co. of New York, Old Dominion Electric Cooperative, Orange & Rockland Utilities and Washington Gas Light.
'The challenges facing interstate pipelines, and other parts of the natural gas value chain, continue to intensify warranting greater regulatory involvement and standardization of practices,' the utilities said.
Under its Natural Gas Act authority, FERC could consider the following, the utilities suggest:
Requiring interstate pipelines to submit annual reports on reliability metrics.
Requiring pipeline owners to consider whether facilities they plan to replace or retire may still offer reliability benefits to customers as redundant facilities.
Revisiting its policy regarding pipeline force majeure and reservation charge crediting provisions to rebalance risk-sharing between pipelines and their customers and create incentives for pipeline reliability.
Additional enhanced communication protocols for extreme weather events, greater standardization of pipeline scheduling and confirmation practices, and other mechanisms to make sure customers that pay for firm service are receiving full contractual value in exchange for their financial commitments.
FERC and state utility regulators are set to meet on Wednesday to discuss gas-electric coordination and gas storage. Speakers at the Federal and State Current Issues Collaborative meeting include Jim Robb, North American Electric Reliability Corp president and CEO; Gordon van Welie, ISO New England president and CEO; and Paul Cicio, Industrial Energy Consumers of America president and CEO.
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