The wholesale gas and power markets went through deregulation at different times. For years each market has operated just fine without the need to synchronize various rules and business practices required to coordinate closely. However, the dependence of electric generation on natural gas usage significantly increased from the late 1970s onwards, with a major shift occurring in the 1990s and early 2000s as natural gas became the primary source for electricity generation due to its relative affordability and lower emissions compared to coal.

With this change a dependency developed between the markets necessitating a change in market rules and business practices adapted to new realities. Among the inherent risks created power outages loomed greatly.

Although the gas/power syncing issues have many facets and appear to have regional differences and outlooks, this white paper focuses on the big picture issues that cross regional lines. The authors also provided a series of proposed solutions for those issues, many of which are now in practice.

Read the paper the original paper published in 2013 that started it all. Skipping Stone President Greg Lander, CEO Peter Weigand, and Partner Ross Malme joined to to take a look at the issues around the changing electricity and natural gas markets.