The National Association of Regulatory Utility Commissioners (“NARUC”) has issued a report titled:
Long-Term Planning among Regulated Natural Gas Utilities: A Review of State Requirements (“Report”).
The Report is stated to be a project of the U.S. Department of Energy-NARUC Natural Gas Partnership and references Kiera Zitelman, Technical Director, NARUC Center for Partnerships and Innovation.
The Report provides an overview of natural gas utility planning requirements in nine states (some of which were initiated within the last few years, which include:
- Washington (2006)
- Oregon (2007)
- California (January 2020)
- New York (March 2020)
- Georgia (April 2021)
- Nevada (May 2021)
- Colorado (June 2021)
- Minnesota (February 2023)
- Illinois (November 2023)
The Report discusses each of the cited states’ commission’s plan proceedings. This includes:
- Relevant legislation and events
- The current status of these processes.
Efforts involving long-term planning are stated to have been driven by issues such as:
- State-level decarbonization goals.
- Constraints in gas supply.
- Volatility in gas prices.
The Report notes that regulated gas utilities have generally not been required to engage in least cost planning processes. One reason for this difference is the wide array of resources electric utilities can select to provide electricity. This is stated to be in contrast (in most states) to gas local distribution companies that purchase a uniform commodity, either directly or via marketers, at least cost to customers.
Nevertheless, the Report states that:
…as supply- and demand-side technologies such as renewable natural gas, hydrogen blending, and energy efficiency and demand response programs have emerged for the gas system, a growing number of state policy bodies are setting GHG reduction goals for gas utilities and customers, introducing options and complexity.
Also noted is the increasing use of natural gas for electricity production in addition to heating.
A copy of the Report can be downloaded here.
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