Texas Commission Adopts Rules for Coordination Between Gas and Electric Industry

The Public Utility Commission of Texas (PUC) adopted a rule related to critical natural gas facilities that supply fuel to electric generators. This joint effort with the Railroad Commission of Texas (RRC) will increase the coordination between the electric and gas industries during energy emergencies. Based on landmark legislation from the Texas Legislature, the new PUC rule creates a new designation for critical natural gas facilities that supply the majority of natural gas in Texas.

The rule also requires a critical natural gas facility to provide information to the utility from which it receives electric delivery service. The electric utility must use this information to prioritize natural gas in energy emergencies. The PUC rule and corresponding RRC rule will be in effect this winter.

“This rule is one of the many major steps the PUC has taken to ensure the Texas power grid will be more resilient this winter than last. These requirements represent a fundamental change in the relationship between the natural gas industry and the electric generation industry,” said Chairman Peter Lake, PUC. “For the first time ever, the electric transmission and distribution utilities will know the locations of the facilities which are critical to keeping natural gas flowing to the power plants that keep our lights on.”

The Public Utility Commission and the Railroad Commission continue to collaborate to better prepare Texas for extreme weather. Today’s rule adoption complements work being done to map the supply chain between the natural gas and electric industries. Natural gas facilities have already registered critical status with their electric delivery utility in much greater numbers than last winter. Now electric utilities can plan and respond much more accurately to keep natural gas facilities energized during an emergency. With this rule, the PUC has yet another tool to increase the resiliency of the electric grid.