Gas-Electric System Interface Study

1. Gas-Electric System Interface Study OPSI Annual Meeting October 8, 2013 Raleigh, North Carolina

2. Acknowledgement and Disclaimer The EIPC appreciates and acknowledges the support of DOE for the Eastern Interconnections Studies Project Acknowledgement: • This material is based upon work supported by the Department of Energy, National Energy Technology Laboratory, under Award Number DE-OE0000343. Disclaimers: • This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.

3. Gas-Electric System Interface Study • Participating Planning Authorities (PPAs) are: ISONE, NYISO, PJM, IESO (Ontario, Canada), MISO (including the Entergy system), and TVA • Four Targets (areas to be analyzed) • Most analytical work to be completed by a consultant with gas industry expertise • Stakeholder process: • Regional stakeholder groups from each PPA • Interconnection-wide Stakeholder Steering Committee (SSC) continues from earlier work • Gas Sector added to SSC with pipeline, supplier, and LDC representatives

4. Target 1 • Develop a baseline assessment that includes descriptions of the natural gas-electric system interface(s) and how they impact each other • Utilize public information and other appropriate sources of data • Develop a baseline of the natural gas and electric systems interface(s) within each PPA Area and the entire Study Region • Assess the specific drivers of the planning process for each of the major pipelines/LDCs in the Study Region

5. Target 2 • Evaluate the capability of the natural gas system(s) to supply the individual and aggregate fuel requirements from the electric power sector • By each PPA Area and for the overall Study Region • 5 and 10 year study horizon • Reference Gas Demand Case and a High Gas Demand Case • Subject to funding availability, the same for a Low Gas Demand Case or a different scenario • Subject to funding availability, sensitivities defined by stakeholders

6. Target 3 • Identify contingencies on the natural gas system that could adversely affect electric system reliability and vice versa • By each PPA Area and for the overall Study Region • 5 and 10 year study horizon • Subject to funding availability, the same for a High Gas Demand Case • Subject to funding availability, the same for a Low Gas Demand Case or a different scenario

7. Target 4 • Review operational and planning issues and any changes in planning analysis and operations that may be impacted by the availability or non-availability of dual fuel capability at generating units • Review the benefits and costs of requiring dual fuel capacity versus the benefits and costs of gas sector infrastructure expansion • Review of the siting and/or permitting issues that might affect the feasibility of one solution over the other (e.g. dual fuel versus gas system expansion), or possibly drive an alternative solution

8. Questions and Discussion