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Energy Action Plan

Energy Action Plan. Natural Gas Actions Status Report David Maul California Energy Commission Staff And Richard Myers California Public Utilities Commission Staff. EAP Goals for Natural Gas. Reduce vulnerability to volatile spot market: Identify critically needed facilities

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Energy Action Plan

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  1. Energy Action Plan Natural Gas Actions Status Report David Maul California Energy Commission Staff And Richard Myers California Public Utilities Commission Staff

  2. EAP Goals for Natural Gas Reduce vulnerability to volatile spot market: • Identify critically needed facilities • Monitor markets • Evaluate net benefits of new supply options • Support longer term contracts as needed

  3. Current NG Market Environment • Short term: • Manage volatile market prices • Refill NG storage facilities • Encourage conservation and energy efficiency investments • Long term: • Develop additional infrastructure • Secure additional supplies at reasonable and stable prices • Reduce reliance on NG electric generation • Improve firm pipeline capacity rights

  4. CPUC Activities • Updating 2001 infrastructure assessment for the period 2004-2008 by this fall. • Examining gas price increase of 2000-2001. • Funding $275 million in energy efficiency measures • Implementing RPS to reduce reliance on natural gas-fired electric generation • Evaluating Gas Utility Resource Plans for needed enhancements

  5. CPUC Activities • Establishing rates for natural gas services • Reviewing California market structure • Representing California before FERC • Investigation of gas price indices • El Paso Market Manipulation settlement • Capacity Allocation proceedings

  6. CEC Activities • Prepare NG Price Spike Reports (Jointly with CPUC) • Coordinate with FERC • Price Spike • LNG • Infrastructure • Enhance California NG production • Seek additional sources of NG supply • Canada • Alaska LNG • Wyoming • LNG White Paper • LNG safety assessment • Governor’s Natural Gas Working Group

  7. Governor’s Natural Gas Working Group • Agencies: ARB, CEC, CPUC, DGS, DOGGR, DWR, OPR, Res Ag, SLC • Activities: • Facilitate permitting for: • Kern River, Kramer Junction Lateral • North Baja Pipeline • Monthly reports on Demand/Supply/Price • Investigate off-spec gas issue • LNG Interagency Permitting Working Group • Monitor regulatory proceedings

  8. CEC Integrated Energy Policy Report (IEPR) • Activities: • Staff NG Market Assessment • IEPR Hearing on Electricity and NG Infrastructure • IEPR Hearing on NG • Upcoming Electricity and NG Report • Targeted workshops • Risk analysis

  9. CEC IEPR • Issues to investigate further: • Data quality—national issue • NG storage capacity and use • Long term infrastructure adequacy • LNG supplies and facilities—cost, safety, environmental issues • Longer term NG contracts—portfolio approach • Back up fuel needs

  10. Progress Toward EAP Goals • Current activities: • NG and electricity assessments • Energy efficiency standards: buildings and appliances • Renewables • Additional activities needed: • Accelerate energy efficiency programs • Consider enhanced “Flex Your Power” campaign • Support additional renewables development • Continue evaluating need for LNG • Investigate need for longer term NG contracts • Continue joint progress on activities

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