In a bid to fortify the reliability of gas-electric coordination across the US, joint regional transmission organizations (RTOs) comprising ISO New England (ISO-NE), Midcontinent Independent System Operator (MISO), PJM Interconnection (PJM), and Southwest Power Pool (SPP) recently released a position paper. The paper seeks to identify and resolve issues to enhance the reliability of gas-electric coordination for balancing the grid and the benefit of consumers. The initiatives proposed are adaptable to regional needs but highlight overarching national concerns that require attention from state and federal regulators collaborating with stakeholders to drive progress.

The joint RTOs collectively serve 36 states and the District of Columbia, providing electricity to approximately 144 million people. They heavily rely on thermal generation fuelled by natural gas, emphasising the necessity for increased coordination between gas and electricity infrastructure to ensure reliability. The position paper outlines immediate and near-term initiatives targeting three primary goals:

  • Gas market enhancements: Focus on improving supply and pricing options to align with the evolving electric generation fleet. Measures include enhancing market liquidity and transparency, particularly during peak demand periods, and expanding scheduling flexibility through flexible transportation products.
  • Operational enhancements: Proactive measures to address reliability needs and vulnerabilities, including reforms to mitigate co-dependent vulnerabilities between gas and electric infrastructure and align operational timelines.
  • Regulatory coordination of state and federal authorities: Advocates for a harmonised regulatory framework to navigate emergencies effectively, including reforms to empower regulatory bodies to address fuel emergencies swiftly and ensure cohesive curtailment priorities across jurisdictions.

Each recommendation is accompanied by specific action steps delineating responsibilities for RTOs, gas producers, marketers, pipelines, and regulatory authorities at federal and state levels. Key initiatives include enhancing market transparency, expanding scheduling flexibility, refining emergency protocols, and fortifying infrastructure resilience.

Comprehensive solutions necessitate collaborative efforts from both the gas and electric industries. The joint RTOs advocate for a holistic approach wherein reforms in one sector are complemented by corresponding adjustments in the other, fostering synergy and resilience across the energy landscape. At the national level, policymakers are urged to consider initiatives aimed at enhancing transparency, liquidity, and operational flexibility within gas markets, alongside regulatory reforms to streamline emergency protocols and bolster regulatory authority.

The paper serves as a call to action for concerted efforts to enhance gas-electric coordination, thereby bolstering the resilience and reliability of energy infrastructure nationwide. The full paper can be accessed here.