FERC proposal seeks to streamline gas-electric coordination
March 24, 2014 | By
Barbara Vergetis Lundin
The Federal Energy Regulatory Commission (FERC) has taken further steps to improve the coordination and scheduling of natural gas pipeline capacity with electricity markets in light of increased reliance on natural gas by electric generators. The proposed revisions include starting the natural gas operating day earlier, moving the Timely Nomination Cycle later, and increasing the number of intra-day nomination opportunities to help shippers adjust their scheduling to reflect changes in demand. In two separate but related orders, FERC established proceedings under the Federal Power Act (FPA) and Natural Gas Act (NGA). The commission initiated investigations under section 206 of the FPA into the day-ahead scheduling practices of the regional transmission organizations and independent system operators to determine if they are just and reasonable and to ensure that these entities' scheduling practices correlate with any revisions to the natural gas scheduling practices that may be adopted by the Commission in a Final Rule stemming from the Notice of Proposed Rulemaking. In a third order, the commission initiated an NGA section 5 show cause proceeding requiring all interstate natural gas pipelines to revise their tariffs to provide for the posting of offers to purchase released pipeline capacity in compliance with 18 CFR §284.8(d) of the commission's regulations, or to otherwise demonstrate full compliance with that regulation. All filings must be submitted to FERC within 60 days of the issuance of the order. "This past winter has highlighted the critical and growing interdependence of natural gas pipelines and electricity markets," FERC Acting Chairman Cheryl LaFleur said. "[These] orders take steps to recognize and address that interdependence to optimize the use of our gas and electric networks for the benefit of all customers." For more:
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