Natural Gas Resource Planning Library

 

The Task Force on Natural Gas Resource Planning is developing resources throughout the two-year initiative to facilitate Task Force members’ deeper learning about natural gas planning processes. These materials may be useful to all NARUC members to support their own efforts.

Expert Learning Sessions

The Task Force hosts monthly topical expert learning sessions in January – June 2024 to explore issues relevant to members and their efforts to develop new approaches to elements of natural gas resource planning. Materials from each session are incorporated into the resource library below.

Resource Library

In fall 2023, Task Force members identified six key topic areas that would foster discussion and learning about issues related to natural gas resource planning. Subject matter experts were invited to present to Task Force members; additional relevant resources were identified for deeper familiarity with the topics. The links included below are provided to share relevant resources but are not endorsed by NARUC or Task Force members. If you would like to suggest an additional resource to add to this list, please email gastaskforce@naruc.org with a copy of the item for consideration.

Table 1: Resource Library Topic Areas

Session	Topic	Resources	Description
1	Gas Integrated Resource Planning	January 31, 2024 Presentation Recording Speakers:  Brad Cebulko, Senior Manager, Strategen Scott Weitzel, VP of Regulatory and Governmental Affairs, Spire Byron Harmon, Regulatory Analyst, Washington Utilities and Transportation Commission	As the operating and planning environment for the natural gas system becomes more complex, the Integrated Resource Plan (IRP) can serve as a tool that can help utilities conduct effective and holistic long-term planning, while providing regulators with critical data and information necessary for oversight.
2	Gas Infrastructure Investments	March 6, 2024 Presentation Recording Speakers:  Paul Metro, Director of the Infrastructure Academy at the Energy Innovation Institute Zach Kravitz, Vice President of Rates and Regulatory at NW Natural Nick Hellen, Chief Engineer, Gas Distribution at Con Edison	There are a number of important questions regarding investments in natural gas infrastructure, due to its significant size and long life and the imperative to repair and replace aging natural gas distribution assets to improve public safety and reduce emissions. In jurisdictions that plan to cut gas utility GHG emissions substantially, questions over the cost and timing of major infrastructure investments are particularly pressing.
3	Volatility in Gas Demand, Supply, and Price	April 3, 2024 Presentation Recording Speakers:  Larry Dykes, Managing Director of Gas Supply at ONE Gas Frank Graves, Principal at The Brattle Group John Protano, Manager of Origination and Price Volatility Management at National Grid	The fundamentals of distribution system plans and planning approaches (e.g., when to start, level of granularity, technical tools and methods); understanding the utility DSP engineer perspective and the regulatory process
4	Emerging Supply- and Demand-Side Technologies	April 24, 2024  Speakers:  To be announced	Whether the gas system will operate business-as-usual or will have to plan for deep emissions cuts, a host of solutions are available as options that can complement the existing gas network or aid in the transition away from GHG-emitting fuel.
5	Ratemaking and Affordability	May 29, 2024  Speakers:  To be announced
6	Coordination Between the Gas and Electric Sectors at the Distribution Level	June 26, 2024  Speakers:  To be announced	The electric & gas industries are increasingly interconnected, with gas powering nearly 40% of electricity generation. From a consumer perspective, both fuels currently provide essential energy: about 60% of U.S. homes use natural gas for space and water heating, cooking, and drying clothes. This session explores strategies for enhanced coordination across gas and electric utilities, information sharing, and joint planning to build a more resilient and reliable energy future in support of consumers.

Session 1 — Gas Integrated Resource Planning

Key points covered in this session include:

• Motivation for conducting a gas IRP
• Lessons learned from gas utilities with long-term planning processes
• For jurisdictions that are further along on gas planning progress, joint planning with the local electric utility (especially in the medium and long term)
• Key components of a successful IRP

 

Session 2 — Gas Infrastructure Investments

Key points covered in this session include:  

• Information, data, and analyses, as well as potential evaluation framework needed to evaluate investments
• Effective process to evaluate requests for cost recovery of infrastructure investments from utilities
• Evaluating large capital programs, such as leak prone pipe replacement programs, within the context of long-term gas planning
• Impacts on customer bills, and methods to reduce or smooth those impacts
• Workforce management (e.g., how to spread projects over time to smooth workload)
• When and how to evaluate alternative-pipeline solutions 

 

Session 3 — Volatility in Gas Demand, Supply, and Price

This session covered the following key points:

• Understand how the gas system and gas markets function under normal conditions work, and the parts of the system and market that are under stress during extreme weather events
• Lessons learned from recent extreme weather events: recent winter storms Uri and Elliott have exposed vulnerabilities in gas infrastructure and highlighted the need for improved planning and tools to manage market volatility with the overall goal of minimizing impacts on gas utilities and customers
• Tools to manage market volatility, including traditional tools such as, prudent hedging practices, additional storage and LNG facilities, energy efficiency to emerging tools like gas demand response, or tariff similar to the Delivery Demand Deferred Charges used in Georgia to pay to costs incurred during extreme cold days
• Understanding the impact of pipeline constraints on utility supply planning and tools to mitigate the supply cost impacts during peak demand periods
• Lessons learned and best practices for managing volatility from the electric sector

 

Session 4 — Emerging Supply- and Demand-Side Technologies

This session will cover the following key points:

• The technical, economic, and commercial potential of alternative supply-side solutions such as certified natural gas, renewable natural gas, hydrogen, electrification (heat pumps, all electric or hybrid), thermal energy networks
• Potential of customer-side solutions such as gas demand response, efficient appliances, energy efficiency
• GHG emissions impacts of the alternative solutions

 

Session 5 — Ratemaking and Affordability

This session will cover the following points:

• Quick overview of cost recovery method (cost of service study, cost allocation process, etc.)
• Innovative rate designs from other sectors (e.g., electric time-varying rates)
• How to balance costs to achieve policy goals against responsibility to keep rates low, and the role of alternative ratemaking mechanisms (e.g., decoupling, performance-based ratemaking, shared net benefits)
• How to maintain affordability for low-income and vulnerable customers, especially in jurisdictions that envision significant investments in the gas system, or investments to transition away from the gas system
• Notable practices from jurisdictions around the country

 

Session 6 — Coordination Between the Gas and Electric Sectors at the Distribution Level

We note that this session will focus primarily on planning at the distribution level, and we will coordinate with the Gas-Electric Alignment for Reliability (GEAR) Task Force to ensure that we do not duplicate their work. Key points covered in this session include:

• Joint planning and forecasting at the distribution level can inform decisions related to infrastructure investments, system operations, and customer engagement ensuring both systems are able to meet demand during peak periods and minimize the risk of disruptions
• Avenues for information sharing, including real-time data to improve situational awareness and facilitate better decision-making, and utility programmatic planning
• Processes to conduct such coordination
• Consumer education and outreach