State Regulators: Driven By Reliability

Deck: 
Can natural gas supply keep up with demand for power?
Fortnightly Magazine - November 2004
This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.

STATE REGULATORS:

Can natural gas supply keep up with demand for power?

Interviews

Things are looking up for the energy industry, but tough issues remain. Regulators-forced to grapple with the mismatch between volatile natural-gas prices and years of building gas-fired power plants-have learned a thing or two. They now insist on new rate schemes and risk-management methods while promoting the use of liquefied natural gas.

And while the August 2003 blackout has faded a bit from memory, reliability and utility infrastructure development remain at the top of the list of important issues. Competition also may be resurging, as California again ponders the benefits of retail choice-this time based on a core/noncore market structure.

This year's Regulators Forum spans the different regions of the country, touching all these issues.

Arizona: Southwestern Reasoning

Questioning FERC

"Arizona utilities have not sought, and the commission has not granted, pre-approval of cost recovery for participation in infrastructure projects. The unique and extraordinary circumstances in Arizona's natural-gas infrastructure support the commission's consideration of pre-approved costs."

Marc Spitzer, Chairman, Arizona Corporation Commission

Q: What is Arizona doing to deal with volatility and increases in natural gas prices, as well as predictions of lack of gas supplies?

A: Two common ways of addressing possible concerns with gas supply reliability and flexibility are the development of natural-gas storage, particularly market area natural-gas storage, and the ability of natural gas-fired electric generation to have a backup fuel source.

This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.