Dive Brief:
- Electric transmission operators and interstate natural gas pipelines can share non-public operational information, the Federal Energy Regulatory Commission (FERC) said in a Friday order. It takes effect 30 days after its publication in the Federal Register.
- "Robust communications" between grid operators in the electric and gas sectors "will help both systems operate reliably and effectively," FERC said in a statement, pointing to the increasing reliance on gas as a fuel for power generation.
- The order includes a "No-Conduit" provision that prohibits recipients of information from disclosing it to an affiliate or a third party. The non-disclosure provision "does not affect current communications among interstate and intrastate natural gas pipelines, local distribution companies and gatherers regarding conditions affecting gas flows between these physically interconnected parties, nor does it affect communications between transmission system operators and load serving entities," FERC said.
Dive Insight:
FERC's order is driven by its belief that the trend of natural gas displacing coal-fired generation "is expected to continue into the future, resulting in greater interdependence between the natural gas and electric industries," the order said. FERC pointed to the so-called Southwest Cold Weather Event in early February of 2011 when there were rolling blackouts and natural gas curtailments during extreme cold weather.