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Richard J. Kruse December 1, 2004

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1 Richard J. Kruse December 1, 2004
Energy Day Richard J. Kruse December 1, 2004

2 Energy Day Electric Generation is a large and growing part of the natural gas market. In 2003 Total natural gas demand = 21,497 BCF Power generation usage = 4,106 BCF or 19.1% of total natural gas consumption By 2010 Total natural gas demand = 24,698 BCF Power generation usage = 6,530 BCF or 26.4% Statistics from ‘An Update Assessment of Pipeline and Storage Infrastructure for the North American Gas Market: Adverse Consequences of Delays in the Construction of Natural Gas Infrastructure” July 2004 The INGAA Foundation, Inc. Power generation is the fastest growing sector for natural gas consumption in the U.S. In 2003, gas-fired generation consumed 4.1 Tcf. We predict that consumption will increase at a rate of 5.1% per year. Two-thirds of the U.S. incremental gas demand from 2003 to 2020 will come from the power sector (Figure 3-2). Sometime near the middle of the next decade, the power generation sector will surpass the industrial sector as the largest natural gas consuming portion of the economy with natural gas use more than doubling to 9.6 Tcf in 2020.

3 Energy Day Electric Generators have conflicting scheduling requirements. Over a 24 hour period, gas fired generators must schedule gas for electric generation prior to being scheduled on the electric side, to generate electricity. The energy day should start in a non-peak period. The gas day starts in the middle of the morning peak on the East Coast and the Midwest.

4 Energy Day Standard Energy Day will put both gas and electric systems on the same time line. Currently the electric industry has multiple electric days across the country. The gas industry has had a standardized gas day since the adoption of GISB Version 1.0 in June of 1996. Simplifies communications at interconnections the gas grid. Limits imbalances, serves both the primary and the secondary markets.

5 Gas Day – 2 Days Gas Day One Gas Day Two

6 Gas Day – 4 Days Gas Day 1 Gas Day 2 Gas Day 3 Gas Day 4

7 Electric Day – 2 Days Electric Day One Electric Day Two

8 Energy Day - Conclusion
Develop a standardized Energy Day Begin the Energy Day at an off-peak period – 12 midnight to 12 midnight based on Central Standard Time Benefits: Enhances communication between the gas and electric industries Fosters the coordination of scheduling Allows both industries to more closely match fuel deliveries to generation requirements

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