i didn ' t realize the report that i sent out yesterday about the california energy commission ' s conclusions on the state ' s natural gas infrastructure was so long ! here is a brief synopsis . i hope this helps everyone . i haven ' t had time to read the full report yet , but if i see a better summary come out , i ' ll send it to you as well . lorna
cec blames overtaxed in - state gas system for high prices
confirming what the state ' s energy crisis made abundantly clear months ago , the california energy commission ( cec ) staff last week released its final draft report on the state ' s natural gas infrastructure , concluding that it is constrained and has caused higher - than - average wholesale gas prices , particularly in the southern half of the state . but the report did not totally rule out market manipulation as a culprit .
it concludes that a combination of infrastructure shortcomings and possible market manipulation has to the higher natural gas prices in california . " market participants may have manipulated prices even higher than justified by existing infrastructure bottlenecks , but it is the inability of gas customers to rely on competition between gas suppliers that contributed to higher prices in california , " the report stated .
among a half dozen recommended steps the state can take to help bolster initiatives already under way by utilities and merchant energy suppliers , said the cec report , which will go to the five - member commission for approval aug . 22 . it stressed encouraging the development of more " independent " gas storage facilities , and taking steps to more fully " optimize " storage , including an increase in its use by large end - users .
as a backdrop to the study ' s conclusions , the cec report noted that both upgrades of in - state infrastructure and interstate pipeline capacity are needed to meet " growing demand in california and throughout the west . " if the current proposed interstate pipeline expansions don ' t come online as scheduled , the cec report said other state actions would be necessary , although it did not spell out what those might be .
for the future , the report said that the cec will track more closely storage levels and natural gas prices because they are " key indicators " of how extensive problems might be at any given time in the state ' s natural gas infrastructure .
the other steps recommended for action are : 1 ) encouraging more in - state natural gas production ( the state legislature already has proposed a new law to provide incentives ) ; 2 ) setting new " design criteria and reliability standards " for the state ' s gas system to reflect what the cec calls " the changing nature of natural gas demand , especially for electric generators ; " 3 ) establishing integrated planning of the state ' s pipeline and storage facilities ; and 4 ) developing a " natural gas curtailment scheme " emphasizing efficiency and optimizing gas use in times of shortages .
the 111 - page report , " natural gas infrastructure issues , " prepared by the cec electricity and natural gas committee for final adoption of the five - member politically appointed commission , assessed the state gas industry from the perspective of supply , pipeline capacity ( both inter - and intrastate ) and storage , with the added elements of the recent historically severe drought in the pacific northwest and the in - state pipeline constraints at the california - arizona border .
as part of the proposed implementation , the report recommends that the cec work more closely with the california public utilities commission to develop a new curtailment policy that is " fair and at the same time promotes the efficient use of natural gas " during shortage periods . it also proposes that the cec this fall conduct a workshop to determine ways to have non - core , large energy - intensive customers better optimize their use of natural gas storage .
i didn ' t realize the report that i sent out yesterday about the california energy commission ' s conclusions on the state ' s natural gas infrastructure was so long ! here is a brief synopsis . i hope this helps everyone . i haven ' t had time to read the full report yet , but if i see a better summary come out , i ' ll send it to you as well .
lorna
cec blames overtaxed in - state gas system for high prices
confirming what the state ' s energy crisis made abundantly clear months ago , the california energy commission ( cec ) staff last week released its final draft report on the state ' s natural gas infrastructure , concluding that it is constrained and has caused higher - than - average wholesale gas prices , particularly in the southern half of the state . but the report did not totally rule out market manipulation as a culprit .
it concludes that a combination of infrastructure shortcomings and possible market manipulation has to the higher natural gas prices in california . " market participants may have manipulated prices even higher than justified by existing infrastructure bottlenecks , but it is the inability of gas customers to rely on competition between gas suppliers that contributed to higher prices in california , " the report stated .
among a half dozen recommended steps the state can take to help bolster initiatives already under way by utilities and merchant energy suppliers , said the cec report , which will go to the five - member commission for approval aug . 22 . it stressed encouraging the development of more " independent " gas storage facilities , and taking steps to more fully " optimize " storage , including an increase in its use by large end - users .
as a backdrop to the study ' s conclusions , the cec report noted that both upgrades of in - state infrastructure and interstate pipeline capacity are needed to meet " growing demand in california and throughout the west . " if the current proposed interstate pipeline expansions don ' t come online as scheduled , the cec report said other state actions would be necessary , although it did not spell out what those might be .
for the future , the report said that the cec will track more closely storage levels and natural gas prices because they are " key indicators " of how extensive problems might be at any given time in the state ' s natural gas infrastructure .
the other steps recommended for action are : 1 ) encouraging more in - state natural gas production ( the state legislature already has proposed a new law to provide incentives ) ; 2 ) setting new " design criteria and reliability standards " for the state ' s gas system to reflect what the cec calls " the changing nature of natural gas demand , especially for electric generators ; " 3 ) establishing integrated planning of the state ' s pipeline and storage facilities ; and 4 ) developing a " natural gas curtailment scheme " emphasizing efficiency and optimizing gas use in times of shortages .
the 111 - page report , " natural gas infrastructure issues , " prepared by the cec electricity and natural gas committee for final adoption of the five - member politically appointed commission , assessed the state gas industry from the perspective of supply , pipeline capacity ( both inter - and intrastate ) and storage , with the added elements of the recent historically severe drought in the pacific northwest and the in - state pipeline constraints at the california - arizona border .
as part of the proposed implementation , the report recommends that the cec work more closely with the california public utilities commission to develop a new curtailment policy that is " fair and at the same time promotes the efficient use of natural gas " during shortage periods . it also proposes that the cec this fall conduct a workshop to determine ways to have non - core , large energy - intensive customers better optimize their use of natural gas storage .