Slide 1

Item No: A-3

March 21, 2013

Gas-Electric Coordination 

Quarterly Update

Docket No. AD12-12

Good morning Mr. Chairman and Commissioners. Today, we are pleased to present the first Quarterly 

Update on Gas-Electric Coordination Activities, as directed by the Commission in its November 15, 2012 

order in Docket No. AD12-12.
Slide 2

Outline

 Communications Technical Conference 

Summary

 Scheduling and Capacity Release Technical 

Conference

 National Initiatives

 Regional Initiatives

 Relevant Filings

Today’s presentation will provide an overview of discussions at the February 13 Gas-Electric 

Communications Technical Conference, highlight national and regional efforts on natural gas and 

electric coordination, and briefly summarize relevant applications that have come before the 

Commission and the Commission’s disposition. This presentation captures events during the period 

September 2012 to February 2013. 
Slide 3

Communications Technical 

Conference Summary

 Key Discussion Topics

• Additional communication needs in 

 day-to-day operations

 emergency conditions

 longer-term planning 

Commission members, Commission staff and a broad cross section of natural gas and electric industry 

representatives, as well as Chairman Snitchler with the Ohio PUC, participated in the February 13 staff 

conference. 

During the panel discussion, representatives of an interstate natural gas pipeline, electric transmission 

operator, and a generation owner described the types of communications that occur today among the 

electric and natural gas industries during stressed, non-emergency operating conditions. Commission 

staff from the Office of Enforcement discussed application of the Commission’s standards of conduct 

and the statutory prohibitions on undue discrimination and preference as they apply to communications 

between the natural gas and electric industries. These initial presentations were followed by a series 

of roundtable discussions that explored communication needs in day-to-day operations, emergency 

conditions, and longer-term planning.
Slide 4

Communications Technical 

Conference Takeaways

 Information sharing and 

communications concerns remain

 Detailed operational information sharing

• Access to more frequent gas pipeline operational 

information

• Access to generator-specific information

• Concerns with interpretation of data

 Protocols for information sharing

Much of the discussion centered on pressing issues in New England. For example, a representative from 

ISO-NE expressed concerns that the ISO is not getting all of the information needed to identify risks for 

reliable operations and to make more accurate decisions during the operating day. He suggested that 

pipelines should provide additional pipeline operational data and generators should provide generatorspecific data regarding fuel supply options.

Some of the additional pipeline data that the system operator would like to be provided included more 

frequent flow data to what is already shared through pipeline postings as well as information regarding 

pipeline pressures at all receipt and delivery points, day-ahead nominations confirmation changes, and 

fuel supply availability. The pipeline operators expressed concern about how this data would be 

interpreted, specifically the pressure changes on the pipelines. The pipelines also expressed that they 

do not have the fuel supply information to provide the generators and are not in the position to opine 

on fuel supply security in the market.

Similarly, generator representatives expressed concern about releasing certain generator-specific 

information to electric system operators, and were especially concerned if that information were to be 

provided by the pipeline operator. Generators stated that pipelines do not necessarily know a 

generator’s complete fuel supply picture or options available.

Representatives from both industries generally agreed that increased information sharing and 

communications should not be limited to emergency situations and that protocols for information 

sharing should be the same in all situations, whether in day-to-day operations, emergency conditions, 

or longer-term planning. However, protocols need to follow and reflect non-disclosure agreements and 

additional clarification is needed with regard to regulations. Specifically, pipeline operators sought 

confirmation that sharing information with individual generators will not be construed as engaging in 

undue discrimination or providing an undue preference in violation of the Natural Gas Act and Federal 

Power Act. 
Slide 5

Scheduling and Capacity 

Release Technical 

Conference

 Scheduling and Capacity Release 

Technical Conference – April 25

As announced in a Notice of Technical Conference issued March 5, 2013, FERC staff will continue its

efforts to examine gas-electric coordination issues through a Technical Conference on scheduling 

and capacity release issues to be held on Thursday, April 25 at the Commission.
Slide 6

National Initiatives

 FERC Staff

 NERC

• Gas-Electric Interdependency Phase II Study report - ongoing

 INGAA, AGA, EEI, EPSA 

• Fosters interregional communication by providing common 

grounds for regional initiatives

• Enhances interregional gas-electric awareness

Staff has been conducting outreach with a number of entities in both the natural gas and electric 

industries to gain a better understanding of their activities on gas-electric coordination efforts. We 

continue to follow industry initiatives on the national level, and continue to engage with trade 

organizations such as the North American Energy Standards Board (NAESB), North American Electric 

Reliability Corporation (NERC), American Gas Association (AGA), Edison Electric Institute (EEI), 

Interstate Natural Gas Association of America (INGAA), and Electric Power Supply Association (EPSA) to 

monitor their activities on gas-electric coordination efforts. Most of the mentioned trade associations’ 

individual members are involved in the regional working group efforts. 

NERC is developing a special reliability assessment on natural gas and electric power interdependency 

in the United States. The first phase of this special assessment was completed in December 2011 with 

the release of a primer on the natural gas industry and its interface with the electric power industry. 

Phase II of the special assessment is nearly finished and will examine vulnerabilities that can affect 

bulk power system reliability and identify ways to minimize those vulnerabilities. 
Slide 7

National Initiatives

 March 5, 2013, Congressional hearing entitled 

“American Energy Security and Innovation: 

The Role of a Diverse Electricity Generation Portfolio”

 March 19, 2013, Congressional hearing entitled 

“American Energy Security and Innovation: 

The Role of Regulators and Grid Operators in Meeting 

Natural Gas and Electric Coordination Challenges”

Although outside the stated reporting period, staff would like to highlight two recent Congressional 

hearings addressing gas-electric coordination issues. On March 5, 2013, the House Energy and 

Commerce Committee, Energy and Power Subcommittee held a hearing entitled “American Energy 

Security and Innovation: The Role of a Diverse Electricity Generation Portfolio.” The hearing focused 

on reliability and affordability issues, among others. The March 5 hearing was intended to start a 

conversation on issues regarding gas-electric coordination.

On March 19, 2013, the Subcommittee held a hearing entitled “American Energy Security and 

Innovation: The Role of Regulators and Grid Operators in Meeting Natural Gas and Electric Coordination 

Challenges.” The hearing featured two panels. The first panel focused on problems the industries are 

facing on gas-electric coordination, as well as possible solutions at the federal level. Commissioners 

LaFleur and Moeller testified during the first panel. The second panel focused on possible regional, 

state and local solutions to gas-electric coordination challenges. Gas and electric industry participants 

such as MISO, ISONE, representatives from the Texas and Colorado PUC’s, and a representative from an 

economic consulting firm testified during the second panel.
Slide 8

Regional Initiatives 

Northeast

 New England States Committee on 

Electricity (NESCOE) 

• Gas-Electric Focus Group

 ISO-NE

Following is an update on regional progress of gas-electric coordination efforts and are based on staff 

outreach and participation in regional gas-electric coordination task force meetings.

Work in New England has been led by the New England States Committee on Electricity (NESCOE) GasElectric Focus Group established in October 2012. The Focus Group facilitates monthly communication 

meetings and calls between the natural gas and electric industries and continues to provide added 

paths for education and coordination. The Focus Group’s purpose is to bridge communication gaps 

between the electric industry, natural gas industry, and States; and to identify and evaluate challenges

resulting from increased dependence on natural gas for electric generation in New England.

At the conclusion of the Focus Group’s efforts, NESCOE intends to issue a final report evaluating the 

challenges that were identified in regional discussions and a spectrum of potential solutions identified 

by the ISO-NE Strategic Planning Initiative and interested stakeholders that can be accomplished in the 

short-term (within two years), the intermediate-term (two to five years) and the long-term (more than 

five years).

In addition, the final report will include a multi-phase study of pipeline capacity by Black & Veatch. 

The Phase I report, presented in a January 2013 Focus Group meeting, reviewed existing studies 

analyzing Northeast issues given existing pipeline bottlenecks. The second phase of the report will 

evaluate how much additional pipeline capacity is needed to alleviate existing bottlenecks. The Phase 

II study is due to be out by mid-April.

In its upcoming meetings, the Focus Group plans to review information related to members’ experience 

related to gas-electric coordination and system reliability during the current winter heating season 

supported by the ISO-NE Strategic Planning Initiative’s Winter Operations Summary released on 

February 27, 2013. These experiences will be also be discussed in the final NESCOE report.

Stakeholders in New England have expressed that the Focus Group meetings have increased 

communications and awareness as well as understanding between the respective gas and electric 

industries.

ISO-NE, as discussed later, has been engaging stakeholders on a variety of reforms to prepare for next 

winter and expects to file with the Commission for approval of reforms to its markets.
Slide 9

Regional Initiatives 

Mid-Atlantic

 Multiregional Natural Gas/Electric Study

• ISO-NE, NYISO, PJM, MISO, IESO, and TVA

 NYISO

• Electric Gas Coordination Working Group

In the Mid-Atlantic region, ISO-NE, NYISO, PJM, MISO, Ontario IESO and TVA are partnering to conduct a 

multi-regional natural gas/electric analysis of major interstate, intrastate, and local natural gas 

infrastructure serving the Eastern Interconnection. 

The primary objectives are to develop a baseline of the electric and natural gas systems, including 

their operation, planning and interactions. The study will include analysis of the major natural gas 

processing facilities, intrastate and interstate natural gas pipelines, underground natural gas and 

above-ground LNG storage systems, and local gas distribution systems (LDCs) serving the footprints of 

the Eastern Interconnection. The study will evaluate the adequacy of the regional gas systems to 

supply gas-fired generation needs over a 10-year horizon; identify contingencies on the natural gas 

system that could adversely affect the electric system and vice versa; and, review the benefits and 

costs of dual fuel capability compared with securing firm gas transportation. A request for proposal is 

anticipated in the first quarter of 2013 with the work being completed by the end of 2014.

In addition to its participation in these interregional activities, NYISO staff has engaged Levitan &

Associates to conduct a quicker “static” study of New York’s circumstances and more immediate issues 

with an anticipated release in the second quarter of this year. The staff group is also working on the 

Northeastern ISO/RTO Planning Coordination Protocol to set the foundation for processes and 

procedures through which coordination of system planning activities will be implemented by the ISOs 

and RTOs of the northeastern United States and Canada.

NYISO stakeholders have also formed a separate Electric-Gas Coordination Working Group to conduct an 

inter-regional gas-electric interaction study focused on identifying information that would allow the 

NYISO operators to have an understanding of the natural gas system. 
Slide 10

Regional Initiatives 

Central

 MISO

• Electric-Natural Gas Coordination Task 

Force

 SPP

• Gas-Electric Coordination Task Force

 ERCOT

MISO and its stakeholders formed the Electric-Natural Gas Coordination Task Force in May 2012 that has 

held monthly meetings and identified a number of high priority gas-electric issues.

During the monthly meetings, MISO has expressed that it generally views its current communication 

processes as adequate for gas-electric purposes but with room for improvement given the anticipated 

expanded role of natural gas on the MISO system. In efforts to improve cross industry understanding, 

MISO held an educational meeting that provided a high-level introduction to MISO’s market design and 

operations in January 2013, while natural gas industry representatives conducted a Natural Gas 101 

session at the February, 2013 MISO Task Force meeting. 

The MISO Task Force plans to continue discussion of improving coordinated emergency operations and 

expand into day-to-day operations communication. Planned efforts include a discussion this May of the 

misalignment of gas-electric days. MISO also is considering moving up its day-ahead market awards 

deadline and an accelerated dispatch schedule for emergency and cold weather events.

The MISO Task Force is currently evaluating possible modifications to its resource adequacy construct 

to account for the possibility of fuel supply disruptions as well as the seasonal variance exhibited in 

some gas unit operations. The Task Force has identified that the Loss of Load Expectation calculations 

do not consider the risk of fuel supply disruption. Also, forced outage rates calculations use historical 

performance data, which is not indicative of future circumstances. 

SPP’s gas-electric coordination initiatives are in the initial stage of development. SPP established a 

Gas-Electric Coordination Task Force that convened on January 25, 2013 with the next meeting 

scheduled for May 8th. The stated goal of the Task Force is to establish monthly meetings providing 

grounds for discussion and education of the natural gas and electric industries. The latest efforts 

include finalizing a charter of the Task Force. Additionally, SPP expressed the need to train its staff in 

gas industry operations and to further these efforts is establishing “desktop displays” to monitor 

natural gas pipeline Electronic Bulletin Boards for information relevant to gas-fired generators 

connected to the SPP system. 

On December 5, 2012 ERCOT hosted a meeting of ISO/RTO Council operations executives with 

representatives from the Interstate Natural Gas Association of America (INGAA). Topics discussed 

included: standards of conduct regarding communications between ISOs and pipelines, best practices of 
gas/electric planning by ISOs, costs of firm and interruptible pipeline service, and impact of gas vs. 

electric scheduling day differences.

This group met semi-annually in 2011 and 2012. In November 2012 and January 2013 ERCOT 

participated in Texas Energy Reliability Council (TERC) meetings facilitated by the Texas Railroad 

Commission (RRC) with participants spanning both gas and electric industries. Discussion included 

winter gas storage status, expected electric generation outages that may affect gas demand and any 

planned pipeline maintenance that might affect delivery. ERCOT began working with the Texas 

Pipeline Association (TPA) and RRC to incorporate location of significant gas facilities into the ERCOT 

electric network model which will facilitate ERCOT’s study of the potential impact of electric outages 

on pipelines and pipeline outages on generators. 
Slide 11

Regional Initiatives

West

 State-Provincial Steering Committee 

(SPSC) and Western Interstate Energy 

Board (WIEB)

 WECC

 PNUCC

 Columbia Grid

 CAISO

The West has a number of subregional natural gas-electric coordination initiatives. The StateProvincial Steering Committee (SPSC) launched an initiative to perform a natural gas and electric 

sector critical needs assessment across the West under the Western Gas-Electric Regional Assessment

Task Force. The regional infrastructure assessment will evaluate the risks and the reliability of the 

integrated natural gas and electric systems in the West. 

The Task Force has held four meetings since November 2012 and has approved a draft “Request for 

Information” seeking input on two issues: 1) adequacy of the natural gas infrastructure to meet the 

long-term needs of the electric industry in the Western Interconnection; and 2) short-term adequacy of 

natural gas operational flexibility to meet the Western Interconnect’s operational flexibility needs with 

increasing integration of renewables.

WECC held a Natural Gas-Electric Coordination Conference on November 12 and 13, 2012. In addition 

to providing educational information on existing communication protocols in each industry, attendees 

in a roundtable work session developed a draft Communication Protocol to outline best practices for 

Gas-Electric coordination. WECC has stated that it also is considering posting contact information for 

relevant gas personnel on its website. WECC may hold a follow-up meeting in May 2013. 

In the Pacific Northwest, natural gas pipelines and electric utilities continue to discuss enhanced 

communications and coordination through the Power and Natural Gas Planning Task 

Force bimonthly meetings, during which the task force 

explores and addresses policy, planning, and reliability challenges. Entities participating in the 

Northwest Mutual Assistance Agreement have formed a collaborative Emergency Planning Committee 

and plan to meet twice a year to discuss winter preparedness with the next meeting planned in May. A 

joint effort between the Northwest Gas Association and Pacific Northwest Utilities Conference 

Committee is evaluating long term planning and reliability challenges given the high level of 

interdependence of the electric and gas industries. The task force has also supported the development 

of the Natural Gas and Electricity Primer and the Role of Natural Gas White Paper, and offered 

guidance on an I-5 Corridor analysis.

ColumbiaGrid’s Gas-Electric Interdependencies Study Team is investigating electric transmission system 

reliability issues associated with a hypothetical limitation of gas supply to electric generators. A large 

number of natural gas powered generators are located in the I-5 corridor and are needed to provide 
reliable electric service to the major load areas west of the Cascade Mountains, for example Portland 

and Seattle. Traditional planning studies have assumed that an unlimited natural gas supply to these 

generators is available when needed. ColumbiaGrid’s Gas-Electric Interdependencies Study Team was 

formed to investigate whether this assumption on gas availability is appropriate. The Team studied a 

scenario involving the total curtailment of natural gas to the I-5 corridor, resulting in only dual-fuel 

natural gas-fired generators being left in service. The conclusion from the preliminary study is that the 

electric transmission system performed acceptably under this “what if” gas curtailment scenario. The 

final study is tentatively scheduled to be released in April.

Lastly, at the February 7, 2013 Board of Governor’s meeting, CAISO’s CEO noted in his report to the 

Governing Board that the ISO was launching gas-electric coordination discussions with the state’s gas 

companies about the ISO’s power plant needs and focus on assessing gas infrastructure necessary to 

meet renewables integration needs. CAISO intends to make their renewable integration studies 

available to pipeline operators for purposes of their assessment of gas infrastructure needs and 

anticipates providing ongoing support to pipeline operators to answer questions they may have 

concerning projected electric system needs as reflected by those studies.
Slide 12

Regional Initiatives 

Southeast

 SERC and FRCC

In 2012, Southern Company, the largest generator of electricity in the Southeast, held discussions with 

representatives of the natural gas pipelines in their region. One discussion resulted in a decision to 

coordinate planned gas and electric system outages on a monthly basis beginning in November 2012. 

These outage coordination meetings were previously held on a bi-annual basis. A second discussion 

covered the timing and type of information that would be available after a catastrophic event on the 

gas system and after an electric system event that would impact power delivery to electric powered 

compressor stations.
Slide 13

Relevant 

Natural Gas Filings

Region Pipeline Capacity/Initiative Docket No.

West Gas Transmission NW Capacity expansion ~175,000 Dthd CP12-494

West Northwest Pipeline Capacity expansion ~63,000 Dthd CP13-18

Southeast Transco Gas Pipeline Capacity expansion ~270,000 Dthd CP13-30

Midwest Trailblazer Pipeline Additional nomination opportunities RP13-240 

Gulf 

Coast/South

Gulf South Pipeline Optional enhanced nomination 

service offering 8 additional cycles 

RP13-294

Gulf Coast/ 

Southeast

Florida Gas 

Transmission

A third intraday nomination cycle RP13-203 

West Transwestern Pipeline Framing system balancing and 

operational issues

RP13-404

On this slide, Staff has highlighted filings made by interstate natural gas pipeline companies to provide 

increased flexibility. Gas Transmission Northwest and Northwest Pipeline both proposed to construct 

facilities to provide new or expanded firm transportation service to an electric power generator in the 

West, while Transco proposed to expand its transportation capacity to serve generators in Virginia and 

North Carolina. Approximately 510,000 Dth per day in overall design capacity is being added to the 

west and southeast regions. These cases are still pending.

In addition, several interstate natural gas pipelines made filings to provide increased service flexibility. 

The changes proposed by Trailblazer, Gulf South, and Florida Gas are designed to allow shippers 

additional nomination opportunities beyond the four standard NAESB nomination cycles. Lastly, 

Transwestern proposed changes to provide enhanced daily scheduling and gas balancing 

flexibility. Transwestern states that these changes could be especially useful to gas-fired generators 

that experience large swings in load late in the gas day. With the exception of Gulf South’s proposed 

changes, these pipeline cases are still pending.
Slide 14

Relevant

Electric Filings

Entity Filing Initiative Docket No.

ISO-NE Modify Day-Ahead Energy Market ER13-895

Revisions on Procurement of TenMinute Non-Spinning Reserve in the 

Forward Reserve Market

ER13-465

Changes to Pipeline InformationSharing ER13-356

Staff has identified three filings submitted by ISO-NE proposing tariff changes to address increasing 

reliance on natural gas-fueled generators.

In Docket No. ER13-895, ISO-NE and NEPOOL proposed two alternative versions of the tariff changes to 

modify New England’s market rules to provide for earlier clearing of the Day-Ahead Energy Market and 

earlier completion of the initial Reserve Adequacy Analysis process. They state that the changes are 

being sought because of concerns with the current day-ahead market schedule and increasing reliance 

of natural gas-fueled generators at times when there is an increasingly tight availability of pipeline 

capacity. The case is still pending.

Previously ISO-NE proposed to increase the amount of Ten-Minute Non-Spinning Forward Reserves it 

procures. ISO-NE stated that by procuring additional Forward Reserves, as necessary, it aims to 

maintain reliability by ensuring the availability of sufficient reserves in real time to deal with concerns 

about resource performance during periods of stressed system conditions. On February 8, 2013, the 

Commission accepted for filing, via delegated letter, ISO-NE and NEPOOL Participants Committee’s 

filed revisions to Forward Reserve Market rules, effective March 1, 2013, as requested.

ISO-NE also had proposed revisions to its Information Policy to allow ISO-NE to share and discuss certain 

information regarding generation resources with pipelines in order to ensure reliability in New England 

during emergency conditions this winter. The Commission set this matter for hearing and settlement 

judge procedures. Subsequently, on January 23, 2013, the Commission accepted the proposal, with 

conditions, on an interim basis.
Slide 15

Continued Regional and 

National Outreach

 Staff’s next Quarterly Report will be 

presented in June 2013

Staff’s next quarterly report will be presented to the Commission at the open meeting in June. Staff 

will continue regular outreach with national and regional entities and with regulated entities regarding 

their efforts on gas-electric coordination. This concludes today’s presentation of the first Quarterly 

Update on Gas-Electric Coordination Activities. We are available to answer any questions you may 

have.
Slide 16

Item No: A-3

March 21, 2013

Gas-Electric Coordination 

Quarterly Update

Docket No. AD12-12