Generators

The PJM Interconnection’s annual capacity auction underway this week could result in natural gas-fired capacity exceeding 6 GW to make up for declining coal and nuclear supplies.

PJM Interconnection has signed a memorandum of understanding (MOU) with nine major gas pipeline companies that serve power generators in its footprint to work together to improve operational planning and address the growing interdependence of the electricity and gas markets.

While grid operators in the Northeast have taken steps to smooth out the kinks in electricity grids that are increasingly relying on natural gas-fired generation, further refinement of the U.S. natural gas and electricity grid systems is needed, FERC Commissioner Philip Moeller and other speakers told an industry forum Wednesday in Valley Forge, PA.

While grid operators in the Northeast have taken steps to smooth out the kinks in electricity grids that are increasingly relying on natural gas-fired generation, further refinement of the U.S. natural gas and electricity grid systems is needed, FERC Commissioner Philip Moeller and other speakers told an industry forum Wednesday in Valley Forge, PA.

PJM Interconnection LLC is upgrading its cost schedule functionality so natural gas-fueled power generators can better know their costs when offering power to the system. The change goes live Monday (Feb. 23).

Upending the natural gas day will not solve the regional problems of lack of pipeline capacity and, in fact, will undermine the reliability of deliveries, the Natural Gas Supply Association (NGSA) said, responding to FERC’s proposed changes in gas scheduling aimed at serving electric power load (see Daily GPI, March 20).

In the aftermath of last winter’s polar vortex, and the consequent spike in natural gas prices, some independent system operators (ISO) are reconsidering plans to retire coal-fired generators that proved critical to maintaining system reliability, according to a report by ScottMadden Inc.

In a filing earlier this month, the California Independent System Operator (CAISO) asked FERC to deny a request by independent power generators for relief from spiked winter gas prices that they had requested two days before (see Daily GPI, March 7).

The effect of this winter’s harsh weather for much of the nation, which has pushed up natural gas demand, particularly in the power generation sector, as well as prices, has spilled over into drought-ridden California where independent generators last Tuesday sought relief from FERC.