Market forces are driving increased use of natural gas to generate electricity because it will be a reliable and low-cost choice despite any Trump administration policy changes, a report commissioned by the Natural Gas Supply Association said. "Regardless of whether there's a federal or state mandate, the market is sending the signals now," NGSA Pres. Dena E. Wiggins said on Apr. 20 as the report was released.
The study by Pace Global of Fairfax, Va., said that gas is the best electric power generation choice now because it ensures reliability, complements renewable sources, reduces total emissions, and keeps customers' costs low.
Gas's combined cycle technology is mature, relatively simple, and low-cost, observed report author Melissa Haugh. "It embodies all the value characteristics utilities are looking at now," she said.
Wiggins said NGSA will use the report to educate new members of the administration and 115th Congress as well as the general public about gas's overall benefits.
"We're very concerned about efforts in states to interdict with pipeline construction," she noted. "But it's also incumbent on our industry to answer consumers' questions. People in communities have legitimate concerns about development impacts that we should address honestly."
Activity continues at the state level. Earlier that week, the National Association of Regulatory Utility Commissioners established a new natural gas expansion and access taskforce to find ways to reach rural communities and other unserved and underserved areas.
Residential, industrial, and commercial customers in such areas without local distribution systems have to rely on bottled propane, heating oil, and other more expensive fuels as a result, NARUC Pres. Robert F. Powelson, a member of Pennsylvania's Public Utility Commission, said as he announced the presidential taskforce's formation on Apr. 17.
Seeking new approaches
The group, which will operate for 8 months, will analyze the potential demand to extend service and infrastructure, Powelson said. It also will identify alternative or unconventional approaches to reaching unserved and underserved areas, he said.
In Pennsylvania, Gov. Tom Wolf (D) said on Apr. 20 that the first of 29 compressed natural gas fueling stations under a public-private partnership opened in Johnstown. Deputy Transportation Secretary for Multimodal Toby Fauver and P-3 Office Director Mike Bonini joined officials from Trillium CNG, Cam Tran, and local governments there.
Trillium will design, build, finance, operate, and maintain CNG fueling stations at 29 public transit agency sites over 20 years in the $84.5-million statewide project. General public refueling already is available at Johnstown, and will be offered at 5 other sites. PennDOT will receive a 15% royalty, excluding taxes, for each gallon sold to the public, to support the project's costs
Nick Snow
NICK SNOW covered oil and gas in Washington for more than 30 years. He worked in several capacities for The Oil Daily and was founding editor of Petroleum Finance Week before joining OGJ as its Washington correspondent in September 2005 and becoming its full-time Washington editor in October 2007. He retired from OGJ in January 2020.
