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Natural Gas Production and Consumption Grew
National – Electric & Natural Gas
U.S. production of associated-dissolved natural gas, or associated natural gas, increased approximately 8 percent in 2023 compared with 2022, averaging 17.1 billion cubic feet per day (Bcf/d) last year (U.S. associated natural gas production increased nearly 8% in 2023 – U.S. Energy Information Administration (EIA)). Associated natural gas production, which is natural gas produced by wells that predominantly produce oil, comes mainly from five major oil-producing regions in the U.S. (Permian, Bakken, Eagle Ford, Anadarko, and Niobrara). Record U.S. crude oil production in 2023 generated large volumes of associated natural gas.
U.S. natural gas consumption grew by 1 percent to reach a new annual high of 89.4 Bcf/d in 2023 and continued growing in the first nine months of 2024 according to the United States Energy Information Administration (U.S. natural gas consumption reaches new highs driven by the electric power sector – U.S. Energy Information Administration (EIA)). This increase was driven by a 6.7 percent (2.2 Bcf/d) increase in consumption in the electric power sector, the largest natural gas consuming sector. U.S. consumption of natural gas for power generation averaged 35.4 Bcf/d, or 40 percent of U.S. natural gas consumed in 2023. In addition, U.S. natural gas-fired electric generation set new daily records in the summer of 2024 generating more than 7 million megawatt hours (MWh) of electricity on August 2, 2024 (U.S. natural gas-fired electricity generation set new daily records in summer 2024 – U.S. Energy Information Administration (EIA)). With the exception of 2021, the share of U.S. electric generation from natural gas in the summer has increased from 29 percent in 2014 to 45 percent in 2024.
Annual U.S. natural gas consumption by sector (2020-2023)
billion cubic feet per day (Bcf/d)
Business Council Urging Analysis of Future Energy Needs
New York – Electric & Natural Gas
The Business Council of New York State is urging Governor Hochul to conduct a deep analysis of New York’s future energy needs and supplies (Business coalition seeks ‘deep analysis’ of NY’s energy needs). The initial mandates of the 2019 Climate Act are approaching, and significant concerns have been raised about the ability of the state to meet those goals. “The petroleum and natural gas sectors have a proven track record of reliably supplying the energy that heats and cools our homes, gets us to work, and fuels our economy, and will continue to have a significant role supporting New York’s economy even during its planned transition to a low-carbon future” states a letter sent to Governor Hochul by a coalition of more than 30 business and energy organizations (Letter to Governor Hochul – Superfund Bill.pdf).
Powering Datacenter Needs
District of Columbia – Electric & Natural Gas
Washington Gas Light Company anticipates executing contracts in the coming months to extend natural gas pipelines to datacenters, where developers plan to use natural gas for on-site electric generation. Project developers in the district area are having difficulty lining up power supply in order to meet their project deadlines, prompting some to explore on-site power generation. The company is optimistic that a few projects will be under agreement in the next six months with additional ones in the queue. The scale of demand among datacenter developers ranges from 1 billion cubic feet per year (Bcf/y) to more than 10 Bcf/y according to the company.
Preserving Retail Electric Choice
Massachusetts – Electric
Both the Massachusetts Senate and House adopted a conference committee report to reconcile differences in a number of energy bills that ultimately preserves individual residential electric choice. The report requires the implementation of the following retail market enhancements: (1) Accelerated switching (three business days) for residential or small commercial customers, upon full AMI (advanced metering infrastructure) deployment; (2) Contract portability for a customer moving within a utility service area, allowing the customer to be served by their existing retail supplier at the new location, with no interim period on default service; and (3) Day 1 switching, allowing customers to take retail supplier service immediately upon service initiation, without being placed on default service for an interim period. The legislation, Senate Bill 2967, also requires the development of a portal for customer AMI data, and retail supplier access to such subject to appropriate customer approval and protections. The Bill (S.2967) (MA S2967 | 2023-2024 | 193rd General Court | LegiScan) was signed by the Governor in late November.
Unitil Purchases Bangor Gas Company
Maine – Natural Gas
The Maine Public Utilities Commission approved Unitil’s purchase of Bangor Natural Gas from PHC Utilities Inc. As a condition of approval, the companies agree to not seek recovery of transaction costs from customers. In addition, Bangor Gas agreed to not seek a rate hike before January 1, 2027. The Bangor Natural Gas distribution system (351-miles) connects the Bangor area to the Maritimes and Northeast pipeline. This transaction will add 8,500 customers to Unitil’s gas distribution system in Maine.
Renewable Energy Project Efforts
New England – Electric
In Maine, the Governor’s Energy Office filed a report with the Maine Public Utilities Commission (GEO Energy Storage Program Recommendations Dec 23 2024.pdf) recommending that the Commission establish programs that would add 200 megawatts to be built by developers. Maine state legislation in 2021 established energy storage goals of 300 megawatts of power capacity by the end of 2025 – enough to provide electricity to approximately 300,000 homes – and 400 megawatts by the close of 2030. Maine currently has 63 megawatts of energy storage capacity interconnected to the electric grid and 175 under construction. The Connecticut Department of Energy and Environmental Protection did not select bids from offshore wind developers in the state’s latest round of renewable procurements; however, it selected four projects (three solar arrays and a battery storage facility) that, if built, will supply a total of 518 megawatts. Governor Lamont stated; “We took a pass on this round,” and “Every state has got different priorities about how we increase capacity, which is how ultimately we’re going to bring down the cost of electricity and do it as green a way as we can,” he added.
Changing Procurement of Utility Provided Default Service
New Hampshire – Electric
The New Hampshire Public Utilities Commission is changing the procurement of utility-provided electric default service. In recent months, the Commission issued directives that provide for electric utilities to procure significant portions of its default service requirements through direct ISO New England market purchases and anticipate this portion of the supply mix will continue to grow. This is in contrast to the traditional methodology whereby procurement is achieved through a request for proposals. Under the new methodology, there is the potential for greater under-collections with the utilities seeking recovery from all customers. A number of stakeholders recommended further changes in the default service methodology and a new phase in the review of default service procurement will likely include the evaluation of issues such as: (1) mandating customers returning to default service be placed on a monthly variable rate until the next six-month fixed price period begins; (2) how to price a six-month fixed rate when a significant part of the supply portfolio is being purchased on a day-ahead or real-time basis; (3) the reconciliation frequency and recovery period; (4) the expansion of ISO New England market purchase for small and large customers; and (5) various pricing methodologies (futures, day-ahead, real-time).
Electric Reliability Council of Texas to Interconnect with U.S. Grid
Texas – Electric
The Texas Interconnection, which is operated by the Electric Reliability Council of Texas (ERCOT) – famous for being isolated from the other major U.S. grids – will interconnect with the U.S. grid. The U.S. Department of Energy announced that it will provide up to $360 million in public funding to construct a 320-mile line connecting the ERCOT electric grid to power grids in the southeastern U.S. (Biden-Harris Administration Invests $1.5 Billion to Bolster the Nation’s Electricity Grid and Deliver Affordable Electricity to Meet New Demands | Department of Energy). The line, referred to as the Southern Spirit, will be used to enhance reliability and prevent outages during potentially catastrophic weather events.
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