Right of Way - May/June 2013

INDUSTRY BUZZ

In March, Don Santa,
President and CEO of the
Interstate Natural Gas
Association of America,
urged the Federal Energy
Regulatory Commission
and the electric power
industry to take prompt action to address the deficiencies in
current electric power market rules that create unnecessary and
avoidable risks to electric power reliability.

electric generators from holding firm pipeline capacity, a

prerequisite for natural gas pipeline expansion.”
INGAA Urges Action to Address Electric Power Rule Deficiencies

According to INGAA, the current legal and regulatory framework for natural gas pipeline expansion, which requires pipelines to demonstrate market need, most typically with customer contracts for firm, long-term service, works. Interstate pipelines have built about 10,000 miles of pipeline in the past decade.

“We appreciate the House Energy and Power subcommittee’s
attention to the matter of gas-electricity reliability,” said Don.
“We recognize that many see the problem as one of insufficient
pipeline capacity. While we agree that pipeline capacity
expansion in some regions is necessary, it is important to clarify
that the root cause of the problem is a structural flaw in the
deregulated wholesale electric power markets. These markets
fail to compensate for electric reliability, regardless of fuel the
generator uses to create electricity. This, in turn, discourages
“In the past year, thanks to FERC’s decision to hold technical
conferences on this issue, we’ve learned what the problems
are. Now is the time for FERC to demonstrate leadership by
encouraging and, if necessary, requiring amendments to electric
power market rules to ensure continued reliability of the bulk
power system,” said Don.

INGAA is the North American association representing the interstate and interprovincial natural gas pipeline industry. INGAA’s members operate approximately 200,000 miles of pipelines, and serve as an indispensable link between natural gas producers and consumers.

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