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Gas-Power Infrastructure: The Missing Link?

Presenting an option to solving electric transmission congestion.
Fortnightly Magazine - February 15 2002

within electrically constrained and/or high cost power markets, the potential for pipeline expansion is very high.

Storage facilities encapsulate a large portion of the peak-day capacity of the gas pipeline systems in the country. These storage systems, as well as potential expansions, also have the ability to supply capacity to the gas market during periods of high gas demand. Again, the gas storage markets overlap the power markets that are faced with power constraints and insufficient generation capacity on their power transmission systems.

Given that the markets with potential power transmission capacity restrictions have access to the same gas transmission capacity in the form of pipeline capacity or storage capacity, the power industry could utilize the physical gas infrastructure serving the same geographic area to enable the strategic placement of new generation that would reduce their electric transmission constraints.

  1. Electric Transmission Constraint Study, Division of Market Development, Federal Energy Regulatory Commission, presented at FERC Dec. 19, 2001 meeting. The study analyzed data for the summer months of June, July and August of 2000 and 2001. Study team members acknowledge that their data was limited, but indicated that congestion during the summer months has a greater impact because the demand for power is high. Thus, the study team could present conclusions for the data analyzed.

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