Part 1 | Non-Pipeline Alternatives to Natural Gas Utility Infrastructure
About this Report
Prepared by Strategen Consulting Inc. for Lawrence Berkeley National Laboratory, Non-Pipeline Alternatives to Natural Gas Utility Infrastructure: An Examination of Existing Regulatory Approaches is the first of two reports that examine the existing and preliminary proceedings, rules, and studies of Non-Pipeline Alternatives (NPAs).
Utilities have deployed targeted NPAs for years by using supply-side resources, including compressed natural gas, liquified natural gas, underground storage, and propane air, to cost-effectively address capacity constraints. Recent developments in the proliferation of decarbonization policies and the emergence of cost-effective, high-efficiency electric appliances have increased NPA interest in recent years.
Primarily for public utility commissions (PUCs) considering the role of NPAs in gas utility planning, Strategen reviews NPA case studies and examples from four states, including Colorado, New York, Rhode Island, and California, to analyze underlying regulatory frameworks and policy goals. Readers of this white paper will learn about:
How each of the four states determine an NPA
Each state’s statutory or regulatory reasoning for pursuing the development of NPAs
The type of information and analysis that a gas utility needs to present to a PUC for approval
The criteria and thresholds that need to be met for a gas utility to evaluate an NPA
Which demand- and supply-side resources can be used as part of an NPA solution
How a gas utility identifies the resource or resources that make up an NPA solution
How a gas utility is expected to acquire the resource
Each state’s guidance on the preferred benefit-cost analysis test for screening the cost-effectiveness of the NPA
If and how states require an examination of the impacts on disadvantaged communities as part of the NPA analysis
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