Natural gas groups happy to see ‘gas day’ kickoff remain at 9 a.m. CT

A Federal Energy Regulatory Commission (FERC) decision issued April 16 to leave the start of the natural gas business day unchanged has drawn praise from various natural gas industry groups.

America’s Natural Gas Alliance (ANGA) President and CEO Marty Durbin said he was happy to see the start of the natural gas day remain at 9 a.m. CT. FERC had considered a proposal that would have moved start of the gas day to 4 a.m. CT.

(Some FERC and trade group statements refer to Central Time as Central Clock Time or CCT).

The Final Rule adopts two proposals submitted by the North American Energy Standards Board (NAESB) to revise the interstate natural gas “nomination” timeline and make conforming changes to their standards.

“Today, the Commission is adopting the proposal to move the Timely Nomination Cycle deadline for scheduling gas transportation from 11:30 a.m. Central Clock Time (CCT) to 1 p.m. CCT and the proposal to add a third intraday nomination cycle during the gas operating day to help shippers adjust their scheduling to reflect changes in demand,” according to a FERC news release.

FERC has been looking at gas-electric market coordination issues for more than a year. The new final rule is expected to take effect within 75 days after publication in the Federal Register.

“We were pleased by the steps FERC took with regard to the gas day,” Durbin said in a statement. “By accounting for the views of natural gas producers, and others within the natural gas community, and retaining 9 a.m. Central Time as the start of the gas day, FERC has taken a common sense approach. FERC clearly recognized the need for a flexible system based on its acceptance of the recommendations by the North American Energy Standards Board.”

Statements on the policy change were also issued by the head of the American Gas Association (AGA) as well as the Interstate Natural Gas Association of America (INGAA).

“We are gratified that the Federal Energy Regulatory Commission listened to the entire natural gas industry, including the interstate pipeline operators represented by the Interstate Natural Gas Association of America, and decided to retain 9 a.m. Central Time as the start of the gas day,” said INGAA President and CEO Don Santa.

AGA President and CEO Dave McCurdy said the FERC decision is “a positive step that recognizes what is in the best interest of both gas and electric customers. We appreciate FERC’s attention to the coordination between gas and electric systems, and believe this is a critical issue that needs attention, but changing the gas day was not a step that would have ultimately improved this coordination.”

“FERC also adopted two proposals submitted by the North American Energy Standards Board to move the interstate natural gas nomination timeline to 1 p.m. CCT and add a third intraday nomination cycle during the gas operating day to help shippers adjust their scheduling to reflect changes in demand,” McCurdy said.

“These are welcome changes that we believe will help improve the coordination between gas and electric systems, and we are pleased to see FERC adopt these changes,” McCurdy said.

FERC outlined the policy in Order No. 809.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.