This week, APGA submitted a letter to the North American Energy Standards Board (NAESB) in response to its request for feedback on an upcoming Gas-Electric Harmonization (GEH) Forum meeting. Through the letter, APGA raised concerns with an item on the upcoming agenda that could lead to natural gas being diverted from LDCs that contracted for the supply and capacity to electric generating units during certain emergency cold weather events.
NAESB serves as an industry forum for the development and promotion of standards which intend to lead to a seamless marketplace for wholesale and retail natural gas and electricity. Specifically, NAESB proposes and adopts voluntary standards and model business practices designed to promote more competitive and efficient natural gas and electric service. APGA has been exceedingly engaged in NAESB GEH efforts and offers the below comments for the committee’s consideration.
This newest GEH Forum was created at the request of the Federal Energy Regulatory Commission (FERC). After Winter Storm Uri brought severe winter weather to much of the country, resulting in many natural gas supply and electricity disruptions, FERC developed a list of recommendations – including the development of such a forum – to help minimize impacts of any future severe weather.
The agenda item of concern involves discussing “[w]hich entity has authority, and under what circumstances, to take emergency actions to give critical electric generating units pipeline transportation priority second only to residential heating load, during cold weather events in which natural gas supply and transportation is limited but demand is high.” Through the letter, APGA raised concerns about diverting contracted natural gas away from LDCs and their non-residential customers, as well as issues surrounding contract cancellation.
APGA will continue to engage with the GEH Forum as it explores other items on its work plan. Participation in GEH Forum meetings are open to all who register.
A copy of the letter is available
here.
For questions on this article, please contact Renée Lani of APGA staff by phone at 202-464-0836 or by email at
rlani@apga.org.