Gas / Electric Integration
Ray Warner
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© 2014 The Williams Companies, Inc. All rights reserved.
Gas/Electric Integration
 Why Change Gas Scheduling Timelines & Gas Day?
> Better coordinate the scheduling of natural gas & electricity markets
– Reliance on natural gas as a fuel for electric generation has steadily increased in
recent years and is expected to continue
> Provide additional flexibility to all shippers on interstate natural gas pipelines
 Concerns
> May introduce safety risks associated with manual field operations for field
crews, therefore increasing costs
> Reduce ability to use more than one interconnected pipeline
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© 2014 The Williams Companies, Inc. All rights reserved.
Gas/Electric Integration
 FERC issued a NOPR on March 20, 2014 (RM14-2) proposing that:
> Gas Day would move from 9:00 AM to 4:00 AM Central Clock Time (CCT)
> Timely Cycle would move from 11:30 AM to 1:00 PM CCT
> Two additional Intra-Day Cycles would be added
> Pipelines would be required to allow multi-party contracts
> NAESB has 180 days to reach a consensus on other options if NOPR
proposal not optimal
> NOPR proposal will be implemented if unable to achieve a consensus
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© 2014 The Williams Companies, Inc. All rights reserved.
Gas/Electric Integration
 Results from May 23rd NAESB Meeting
> Scheduling timelines were agreed upon by gas and electric industries
> Start of Gas Day was narrowed down to 4 alternatives
–
–
–
–
4 AM
6 AM
7 AM
9 AM
 Results from June 2nd NAESB Meeting
> Eliminated 6AM and 7AM start of Gas Day alternatives
 Final comments are due to FERC November 28, 2014
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© 2014 The Williams Companies, Inc. All rights reserved.
Gas/Electric Integration
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© 2014 The Williams Companies, Inc. All rights reserved.