NAESB and Electricity, together with Gas in Perfect Harmony?

Power generation has surged as a market for natural gas in recent years, and gas-fired generation has become the largest single source of generation capacity.  So coordinating the two industries, or “Gas-Electric Harmonization” has been around as an issue for quite some time.  But while pipelines, generators, and shippers have been arguing about a host of complicated (and pretty boring) issues for about 20 years, the subject has really heated up lately, and has the potential to cause some major changes in both industries, changes that could particularly have an impact on the market for Northeast gas supplies.  The spark for the latest flurry of activity is a proposed rule issued in March by the Federal Energy Regulatory Commission, or FERC, dealing with what they’ve been hearing from the electric industry.  In today’s blog we review what FERC is trying to do, and how they’re using the North American Energy Standards Board, NAESB, to reach an unprecedented level of synchronization an

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