Part 2 | Non-Pipeline Alternatives: A Regulatory Framework and a Case Study of Colorado
About this Report
Prepared by Strategen Consulting Inc., Non-Pipeline Alternatives: A Regulatory Framework and a Case Study of Colorado is the second report sponsored by Lawrence Berkeley National Laboratory that offers a framework for evaluating non-pipeline alternatives (NPAs) that states can adapt to meet their policy needs.
Utilities have historically relied on infrastructure investments to address system needs and earn shareholder returns. Though the use of natural gas is likely to decline, most gas utilities have not slowed capital spending. This spending is increasingly expensive and risks the stranding of assets that may be underused or unused because of a contraction in the gas sector.
NPAs provide an opportunity to reduce emissions, gas system costs, and customer risk by avoiding infrastructure spending. An NPA is an investment or activity that defers, reduces, or avoids the need to construct or replace gas system infrastructure. Rather than address system issues with traditional capital projects, utilities can leverage demand-side NPA resources, such as energy efficiency and electrification, and supply-side NPA resources, such as locationally deployed liquified natural gas, to reduce customer costs and reduce the risk of stranded assets. NPAs are crucial tools for gas utilities to factor in their capital planning.
The first report, Non-Pipeline Alternatives to Natural Gas Utility Infrastructure: An Examination of Existing Regulatory Approaches, reviewed NPA case studies and examples from four states, including Colorado, New York, Rhode Island, and California, to analyze underlying regulatory frameworks and policy goals.
This paper:
Provides a set of observations and leading opportunities to help guide the development and refinement of NPA requirements
Establishes three main process steps when considering NPAs
Discusses reporting requirements, stakeholder involvement, and policy design to support NPAs
Evaluates the case study, the PSCo Colorado NPA Filing, to highlight leading opportunities for the design of NPA regulations
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