A coalition of energy and former utility regulatory officials is calling for increased coordination and information sharing between market players in the electricity and natural gas industries.
“The electric grid and natural gas industries are intertwined. Disruptions in one system can have devastating consequences for the other, as seen during Winter Storm Uri and Winter Storm Elliott,” said Robert Gee, Co-founder of Gas Electric Reliability for America.
Gee, who is President of Gee Strategies Group LLC, is a former attorney for the Federal Energy Regulatory Commission, Chairman of the Public Utility Commission of Texas, and Assistant Secretary for Policy and International Affairs and for Fossil Energy at the U.S. Department of Energy.
Interruptions in gas supply can lead to power outages, as natural gas is the leading fuel source for electric generation. Electric power also plays a significant role in the transportation of natural gas, as pipelines increasingly rely on electric compressor stations to maintain a steady flow rate, the group noted in a Sept. 6 news release.
To keep the power on during severe winter weather, “GERA is calling for increased coordination and information sharing between market players in the electricity and natural gas industries,” it said.
This month marks the one-year anniversary of the cross-industry North American Energy Standards Board report that recommended 20 practical steps to improve coordination between the heavily interdependent electric and gas industries. That report was requested by the Federal Energy Regulatory Commission chairman and North American Electric Reliability Council President and CEO in 2022 and was developed following broad industry consultation.
GERA will report its findings on the energy industry's progress in implementing the NAESB recommendations and identify and recommend best practices to strengthen the electric grid that could be adopted in other regions of the country.
One of GERA’s first tasks will be to see how communications can be improved between natural gas infrastructure entities, electric grid operators, and local gas distribution utilities during extreme cold weather events to enhance situational awareness and prevent outages.
The NAESB Report and FERC both called for improved communication between industry members, GERA noted.
GERA Co-founder Pat Wood, a former Chairman of FERC and the Public Utility Commission of Texas, highlighted the efforts of Texas officials and industry members to bridge the traditional communication gap by adopting a framework for regular information sharing about gas and grid operations.
“Since implementing this initiative, the Electric Reliability Council of Texas has not experienced widespread outages,” Wood said.
Wood along with Sue Tierney, an energy economics, regulation and policy expert at Analysis Group, and Gee served as co-chairs of the NAESB Gas-Electric Harmonization Forum that issued the Gas Electric Harmonization Forum Report. Following that effort, they joined with other industry participants to form GERA.
Along with Gee, Tierney and Wood, the GERA Founding Members are:
- Mary Landrieu (D-LA) Member, United States Senate (1997 – 2015) Former Chair, Committee on Energy & Natural Resources
- Steve Gaw, Former Chairman, Missouri Public Service Commission and Speaker, Missouri House of Representatives
- Rob Gramlich President, Grid Strategies LLC and Former Economic Advisor to FERC Chairman Pat Wood III
- Richard Mroz, Former President, New Jersey Board of Public Utilities & Former Chair, Organization of PJM States
- Michele Richmond, Executive Director Texas Competitive Power Advocates
- Ted Thomas Founder, Energize Strategies, and Former Chairman, Arkansas Public Service Commission
- Carla Tully, Independent Non-Executive Board Director, and Former/Founding CEO & Chairwoman, Earthrise Energy
- Susan Waller Executive Director, Natural Allies for a Clean Energy Future
In response to the formation of the coalition, NERC said it “has long stated that natural gas is essential to the reliability of the grid during the electricity industry’s unprecedented transformation. We welcome any effort to meet the gas/electric challenge with the sense of urgency that it deserves and the leadership of Gas Electric Reliability for America in keeping the focus on this critical reliability issue. The GERA task force is continuing to spotlight the need for ongoing dialogue regarding these two interconnected, critical infrastructures.”
In addition to GERA’s work, “we are encouraged by the various efforts being undertaken across industry, including recent activity by the Interstate Natural Gas Association of America, the Natural Gas Supply Association, the Electric Power Supply Association, several of the independent system operators, and NARUC’s upcoming recommendations; however, more work is needed to fully address the challenges and risks,” NERC said.
“NERC remains committed to collaborating with industry, our federal, state and provincial government partners, and other stakeholders, which is imperative if we are to continue assuring a reliable, resilient grid now and into the future. “
