At the onset of this contract the Consultant(s) will review available documentation on ERCs background, mandate, recently adopted natural gas market framework, and natural gas TSO code. The Consultant(s) will then carry out the following tasks:
Task 1: Review of TSO Framework and Recommendation Report for ERC
The technical advisors are expected to support ERC through remote review of documents and virtual meetings. The technical advisors will submit regular progress reports to ERC and USEA throughout the engagement. The reports will summarize the recommendations and feedback on the TSO Framework and further steps for gas market liberalization. Technical advisors will submit a final report comprising all document reviews and TSO Framework review to USEA and ERC at the end of the project.
The TSO Framework review and support could include analysis of the following:
• Imbalance charge setting
o Calculating marginal delivery charges
o Balancing neutrality
• Capacity overuse charge setting
o Calculating and assessing capacity
o Setting penalty charges for capacity overuse
• Shrinkage gas regulation
o Managing reduction in volume of natural gas
o Calculating lost and unaccounted for (LUAF) gas supplies
o Storage injection shrinkage
o Regulating shrinkage gas resupply
• Gas dispatch regulation
o Gas scheduling and dispatch
• Gas mixing regulation
o Technical standards for gas mixing
• Change of gas quality in the pipelines and impacts to customers
o Technical standards for gas quality
o Mitigating customer impact
o Managing hydrocarbon liquids
The consultants, through the review of the TSO Framework and conversations with ERC staff and management, will identify key gaps for capacity building, under the direction of USEA. Capacity building activities for ERC implementing staff could include, but are not limited to:
• Best practices in gas market liberalization
o The presentations could also identify the roles of key players in a liberalized gas market, including regulators, producers, transmission system design, transmission operators, marketers, distribution companies, and offtakers.
o Presentations could include discussion of U.S. gas market structure including third party access to transmission, rate setting, contracting, and other price considerations.
• Technical considerations for regulators
o Key topics in this conversation will include gas quality specifications, standardizing contracts, gas dispatch and balancing, pipeline safety, and gas trading hubs.
• The regulator’s role in a competitive gas market
o Sub-topics related to a competitive gas market could focus on the various regulatory roles required to oversee effective competitive markets, including review of proposals for new facilities and infrastructure, rate-setting, trading hub design, pipeline safety oversight, pipeline capacity services, information and price transparency, land access issues, environmental protections, and noncompliance penalty design.
• Competitive gas market policy and regulation
o This conversation could focus on the history of natural gas policy and regulation in the U.S., including the discussion of impacts on the market during unbundling and deregulation.
Please review the PDF file here for full details on deliverables and timeline.