1. Natural Gas Infrastructure Assessment
Jim Robb, CEO
Byron Woertz, Mgr. System Adequacy Planning
Western Electricity Coordinating Council

2. Why Are We Doing This Study?
Context
What has been done in the past?
Questions
What do we still need to know?
Study
How will we move forward?
Western Electricity Coordinating Council

3. Context 2014 study by Energy + Environmental Economics (E3) Phase 1
Will there be adequate natural gas infrastructure (interstate and intrastate), including storage, to meet the needs of the electric industry in the Western Interconnection approximately ten years in the future?
Phase 2
Will the gas system have adequate short-term operational flexibility to meet increased volatility in hourly electric industry natural gas demand due to higher penetration of variable renewable resources in the Western Interconnection?
Western Electricity Coordinating Council

4. A Few Key Conclusions from E3
The natural gas and electric industries are deeply linked.
Existing gas transportation infrastructure will generally be adequate to meet regional electric needs based on current usage patterns; however, growth in gas generation (e.g., resulting from coal and nuclear retirement) will require expansion of natural gas infrastructure to provide fuel security .
Gas generation that does not contract for firm transportation service may be subject to interruption.
Interregional coordination is essential to regional reliability.
Western Electricity Coordinating Council

5. Western Electricity Coordinating Council
What Has Changed?
Four years have passed
Updated views of renewable growth and need for flexibility and balancing resources
Updated outlook on load and new generation build
Increased understanding of the “duck curve” effect on gas plants
Gas infrastructure permitting challenges have increased
Gas pipelines will not magically appear with a signed contract
Aliso Canyon
Refined understanding of gas storage and the practical limits of pipeline “pack and draft” and its role in balancing increasingly rapid gas plant ramps
Western Electricity Coordinating Council

6. Western Electricity Coordinating Council
Study Purpose
Identify potential future reliability risks related to the current and future natural gas infrastructure
Contingencies
Identify key natural gas related contingencies that should be included in utility planning
Dependence
Highlight risks associated with increasing dependence on gas—communicate to key policy makers
Mitigation
Identify risk mitigation options for policy maker and utility consideration
Western Electricity Coordinating Council

7. Western Electricity Coordinating Council
Key Concerns
How secure and reliable is the gas supply?
Supply restrictions due to weather or other supply disruptions
Impacts of firm vs. interruptible contracts
Can and will any needed new infrastructure be built in a timely manner?
Challenges in permitting and siting
Is there adequate flexibility to meet future electric system operational needs?
Use of storage as a “shock absorber” to balance increasing ramping needs
Use of storage and pipeline pack to meet deliverability requirements
How should mid-stream risks be factored into electric reliability planning?
Critical storage fields
Critical processing facilities
Interstate pipeline availability
Western Electricity Coordinating Council

8. What Questions Can We Answer?
Mapping
How are the gas and electric systems connected?
Infrastructure
What infrastructure will be needed to meet “stress case” fuel demands in 2026?
Contracts
How could contracting practices affect reliability?
Contingencies
How should electric planners factor single point of failure, gas supply, and operating contingencies in their planning work?
Western Electricity Coordinating Council

9. Western Electricity Coordinating Council
Proposed Scope
Western Interconnection BES, with primary focus on US-based generation
Future scenario based on WECC’s 2026 Common Case load forecast, resource mix, and transmission topology
Focus on midstream asset-related contingencies (presume upstream gas availability)
Rely on public sources for other needed information (e.g., core gas loads)
Western Electricity Coordinating Council

10. The Study Will Build On Other Work
WECC Gas-Electric Interface Study
2014 E3 Study
Infrastructure Adequacy
Operational Flexibility
NERC/Argonne Study
Characterize Storage Fields
NERC SPOD Study
Vulnerabilities WRT Storage
CAISO Analytics
Lessons Learned From Aliso Canyon
Western Electricity Coordinating Council

11. Western Electricity Coordinating Council
Deliverables
Map BES assets to natural gas infrastructure and identify key points of vulnerability
Assess infrastructure adequacy to meet future needs based on 2026 Common Case
Assess the firmness of Western Interconnection gas supply and transportation contracts (ROP 1600 Request)
Identify key planning contingencies for utility planners to consider
Western Electricity Coordinating Council

12. Deliverables (continued)
Identify and assess risks of supply-side constraints and options for planning around them (e.g., Mexican gas exports; LNG exports)
Identify operating protocol issues that should be reconciled
Identify one or more “stress test” scenarios (e.g., weather and/or infrastructure failure stresses) and assess risk of cascading electric outage
Suggest mitigation options for reducing any identified risks
Western Electricity Coordinating Council

13. Western Electricity Coordinating Council
Project Structure
Steering Committee
Jim Robb, Chair
Marie Jordan, Peak
Steve Berberich, CAISO
Ron Nichols, SCE
Mike Cashell, NW Energy
Jim Piro, PGE
Kimberly Harris, PSE
Mark Schiavoni, APS
Core Team
Technical Advisory Committee
WECC Staff
Gas Consultant
Terry Baker, Peak
John Moura, NERC
Maury Galbraith, WIEB
Mark Rothleder, CAISO*
Ken Kujala, NWPCC*
Brian Theaker, NRG
David Mills, PSE
Justin Thompson, APS
Val Yildirok, PGE
* Invited, but not yet confirmed
Western Electricity Coordinating Council

14. Gas-Electric Interface Study Timeline
2017
2018
Mar
May
Jul
Sep
Nov
Discussion with Board
Mar 7
Release RFP
Mar 31
Select Consultant
May 31
Interim Report
Final Report
Sep 12
Mar 1 - Mar 31
Create RFP
May 1 - May 31
Review RFP Responses
Jun 1 - Jul 31
Establish Data Sharing Protocols
Jun 1 - Feb 28
Complete Interim Report
Mar 1 - Aug 31
Complete Final Report
Today
31 days
31 days
61 days
273 days
184 days
Western Electricity Coordinating Council