Media Release
Report Highlights Potential Reliability Risks Due to
Increased Natural Gas Dependence
May 24, 2016
ATLANTA - An increasing dependence on natural gas for electricity generation could
pose reliability risks to the bulk power system due to the reliance on a single, justin-time fuel source. A North American Electric Reliability Corporation short-term
special assessment, released today, highlights recommendations to manage these
potential impacts.
While much has been accomplished to improve coordination between the gas and
electricity industries, more opportunities remain, according to NERC’s Operational
Risk Assessment with High Penetration of Natural Gas-Fired Generation. Natural gas
challenges historically have occurred during extreme winter weather conditions and
focused primarily on pipeline capacity and availability. However, as the reliance on
natural gas increases, these challenges may be experienced more often.
Additionally, a recent high-profile event at a natural gas storage facility
demonstrates the potential risks to bulk power system reliability by reducing fuel
diversity.
“Coordination efforts and situational awareness are increasingly more important as
dependence on natural gas has increased,” said John Moura, director of Reliability
Assessment and System Analysis. “Operational risk assessments, coupled with
reliability studies, provide the insights and forewarning needed to understand an
electricity system’s sensitivity to the vulnerabilities of natural gas-fired generation
and identifies potential mitigation strategies.”
The assessment focuses on areas with gas generation penetrations of greater than
40 percent, which includes NPCC-New England, NPCC-New York, ERCOT and WECCCA/MX. Key findings include:
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Assessment areas with a growing reliance on natural gas for power
generation are increasingly vulnerable to issues related to gas supply
interruptions;
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For gas-fired generators, supply disruptions are a winter concern due to gas peak use for heating
and a summer issue, which is a peak period for electricity demand;
An important mitigation approach includes high levels of coordination between the electric and
natural gas industries, which can lead to a more resilient bulk power system and increased
situational awareness of potential fuel supply shortages.
The assessment also recommends that NERC and WECC convene a meeting with impacted industry
organizations to identify reliability impacts of the Aliso Canyon storage facility in California, the fourth
largest storage site in the United States, and to develop mitigation strategies to ensure bulk power system
reliability.
Other recommendations in the assessment include:
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Bulk power system planners and operators should continue accounting for and develop mitigation
actions for reliability risks from extreme weather events;
Generation and transmission planning should account for the potential large single-contingencytype supply disruptions associated with natural gas pipelines, compressor stations, well-head
supply and gas storage;
System operators should enhance coordination on natural gas supply shortages due to unforeseen
conditions;
The electric and gas industries should consider mitigation measures that include the use of dualfuel generators and firm natural gas delivery contracts.
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The North American Electric Reliability Corporation (NERC) is a not-for-profit international regulatory authority whose mission is
to ensure the reliability of the bulk power system in North America. NERC develops and enforces Reliability Standards; annually
assesses seasonal and long‐term reliability; monitors the bulk power system through system awareness; and educates, trains,
and certifies industry personnel. NERC’s area of responsibility spans the continental United States, Canada, and the northern
portion of Baja California, Mexico. NERC is the electric reliability organization for North America, subject to oversight by the Federal
Energy Regulatory Commission and governmental authorities in Canada. NERC’s jurisdiction includes users, owners, and operators
of the bulk power system, which serves more than 334 million people.
Media Release | Report Highlights Potential Reliability Risks Due to Increased Natural Gas Dependence
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