NERC said, “This standard represents the conclusion of several years of hard, focused work by industry stakeholders and two NERC drafting teams.”
“[The] filing reflects NERC’s ongoing commitment to enhancing the reliability, resilience, and security of the North American bulk power system.
“The revised standard is the result of significant industry collaboration and incorporates lessons learned from recent severe winter weather events, aligning with FERC directives and recommendations”
“In its summary of the key findings and causes of the February 2021 Event [Winter Storm Uri], the joint inquiry team identified that two causes, both triggered by cold weather, lead to the Event, and that these two causes form a recurring pattern in cold weather events over the previous ten years.
“The first cause was that generating units unprepared for cold weather failed in large numbers.
“The second cause was related to supply issues caused by the decline in natural gas production, exacerbated by the increasing reliance on natural gas fired generation.
[The PJM electric grid region and Pennsylvania had very similar problems with the reliability of natural gas-fired electric generation during Winter Storm Elliot that resulted in FERC approving $1.25 billion in penalties on generators for not performing in 2023. Read more here.
[Pennsylvania too is overdependent on one fuel to generate our electricity.
[The Independent Fiscal Office reported in 2024, Pennsylvania depends on natural gas to generate 59% of the state’s electricity. Read more here.]
“The joint inquiry team identified that, despite prior recommendations that entities take steps to prepare for winter, a significant number of generating units failed to have any winterization plans.
“The joint inquiry team further determined that 81% of the freeze-related generating unit outages occurred at temperatures above the unit’s stated ambient design temperature.”
The recommendations made by NERC include--
-- Providing clear criteria for determining when a generator could declare constraints that would preclude them from implementing a specific corrective action to address freeze protection issues;
-- Shortening deadlines for generators to implement corrective action plans so that known freezing issues are addressed more quickly;
-- Requiring generators with new bulk electric system generating units entering commercial operation on or after Oct. 1, 2027, to have required cold weather capabilities upon entering commercial operation; and,
-- Requiring generators to review their cold weather constraints at least once every 36 months for continued validity, instead of at least once every five years, “to ensure that new technologies are considered and circumstances preventing implementation are reevaluated.”
Click Here for a copy of the proposed standard.
NERC asked FERC to authorize the new standard to be effective by October 1.
Click Here for the NERC announcement.
Related Articles This Week:
-- PUC Releases Agenda For April 24 Hearing On Its Review Of Electric Grid Impacts From Data Center Growth [PaEN]
-- New Report: Fixing PJM’s Broken Electric Generation Approval Process Can Lower Energy Costs, Create Jobs Across The Mid-Atlantic [PaEN]
-- North American Electric Reliability Corp. Files Proposed Cold Weather Standard To Improve Reliability For Natural Gas-fired, Other Electric Generators [PaEN]
-- PUC Commissioners Urge Congressional Action To Preserve $19 Million In Remaining LIHEAP Funds For PA This Year [PaEN]
NewsClips:
-- Utility Dive: NERC Proposes Generator Cold Weather Reliability Standard
-- Utility Dive: Ratepayer Advocates: FERC Should Order PJM To Rerun Last Electricity Capacity Auction; Could Lead To $5 Billion In Consumer Savings
-- Reuters: FERC Denies Rehearing On Colocated Amazon Data Center Energy Pact In Luzrne County
-- Energy Association Of PA [Utilities] Calls For Protection Of LIHEAP Low-Income Home Energy Assistance Program
-- Observer-Reporter Guest Essay: Shapiro’s Energy Policies Will Cause Us To Pay More - By Sen. Camera Bartolotta (R-Washington) [PJM Policies-Data Center Growth Taking Power Away From Public-Natural Gas Prices Are Real Problem - Get The Real Story Here ]
-- Bloomberg: US Propane Market Collapses Due To Trade War With China
-- Reuters: US Natural Gas Prices Drop 6% To 9-Week Low On Record Output, Lower Demand
-- E&ENews/Politico: President’s Push For More LNG Gas Exports Risks Domestic Price Surge
-- Financial Times: Growth In Oil Demand Expected To Slow Sharply As A Result Of Presidents Tariffs
-- The Guardian: President’s Tariffs Will Mean World Uses Less Oil This Year, IEA Says
Resource Links - PJM Issues:
-- PUC Releases Agenda For April 24 Hearing On Its Review Of Electric Grid Impacts From Data Center Growth [PaEN]
-- PUC Invites Stakeholder Comments On The Issue Of The Adequacy Of Electricity Supplies In Pennsylvania [Background On Issue] [PaEN]
-- 30 Stakeholder Comments Received By PUC On Adequacy Of Electricity Supplies In Pennsylvania; Increasing Natural Gas Power Plant Reliability To 90-95% Would Mean No Imminent Capacity Problem [PaEN]
[Posted: April 14, 2025] PA Environment Digest
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