Electric Co-op Today

With natural gas increasingly used to fuel electric generation, the gas and electric sectors must work together to ensure that critical infrastructure and operational coordination are in place to maintain system reliability, the North American Electric Reliability Corp. said.

Growing use of natural gas to fuel electric power plants requires greater coordination between the sectors, a new report says. (Photo By: Jarek Joepera)

“Increased dependence on natural gas for generating capacity can amplify the bulk power system’s exposure to interruptions to natural gas fuel supply and delivery,” the watchdog cautioned.

NERC’s perspective was set out in a recent report, 2011 Special Reliability Assessment: A Primer of the Natural Gas and Electric Power Interdependency in the United States.

According to the document, potential inter-industry challenges stem from differences in how the sectors plan for the long term, communicate with their respective stakeholders and operate within different regulatory frameworks.

One of the challenges noted by NERC is that the proprietary status of most operating information increases the difficulty of future coordination between the natural gas and power industries. To address this problem, it said, increased transparency is needed in both markets.

The report also pointed out that the operational needs of gas-fired power plants create day and night swings, as well as weekday and weekend swings, in demand for natural gas. This makes it difficult for the gas industry to provide needed services to the electric power sector, NERC said.

Therefore, the report indicated, “a coordinated approach for engaging the two industries to come together and develop compromising solutions to address communications strategies, operational changes and tariff changes is critical.”

NERC identified a range of mitigating strategies it said could contribute to managing risks. They include expanded gas storage, firm fuel contracting, alternate pipelines, dual-fuel capability, access to multiple natural gas basins and additional transmission lines from other areas, it specified.

The bulk power watchdog said that the report was the first phase of a two-part process, providing a foundation for sharing preparedness in the face of unusual situations and practical steps that could reduce extreme-condition impacts and vulnerabilities.

The second phase, it specified, is to leverage the document as a platform for discussions with both industries.

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Tags: Natural Gas, North American Electric Reliability Corporation