Gas & Electric Market Synchronization

Boston – May 22, 2024 – Skipping Stone President, Greg Lander, and CEO, Peter Weigand have collaborated to develop a comprehensive set of solutions to finally solve the elusive gas and electric market synchronization issues. This paper is a follow-on to the original paper published in 2013 that resulted in several operational changes to address key issues, however, didn’t result in fully solving the synchronization issues.

Now that the markets have adopted past rules modifications, which helped both markets, the authors are putting forth in the paper a series of additional structural market modifications that address the full solution set. A sampling of new solutions include:

Hourly Pipeline Park & Loan Services
Load Factor-Based Rates
Firm Shipper Revenue Sharing
New Pipeline Expansion Model
New Pipeline Revenue Stream
ISO Operational Coordination

Both an explanation of the synchronization issues and the authors’ proposed solutions are contained in the full white paper. The white paper is free and available for download on either SkippingStone.com or CapacityCenter.com

“Several years ago, pipeline rules were modified to address synchronization issues. Those rules helped but didn’t solve 100% of the problem. Since then, the electric grid has and will continue to shift to more renewables. This shift puts more pressure on gas-fired generation to deliver on call, which in turn relies on pipelines to deliver in a manner that isn’t operationally and by rule how pipelines are supposed to work. Essentially pipelines are expected to provide a free ramp-up, ramp-down service to generators, which is not fair to pipelines and their firm shippers. At the same time, since it is free, generators are at risk of ISO penalties and potential blackouts because there isn’t a market structure to address the need for hourly gas service for generators,” says Greg Lander, Skipping Stone President.

Peter Weigand, Skipping Stone CEO, continues, “Our goal with this white paper is to lay out a proposed solution set that various stakeholders can engage with Greg in a healthy collaboration that hopefully leads to new market rules that address the key issues.

Global Media Contact:

Nancy Young
Skipping Stone, LLC
NYoung@skippingstone.com
(832) 279-3029

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