By Suzanne Herel

PJM and nine interstate pipelines have signed an information-sharing agreement to improve the reliability and flexibility of natural gas supplies for the RTO’s generators.

The Memorandum of Understanding spells out in detail the kind of non-public information PJM and the pipelines will share as permitted by PJM’s Tariff and the Federal Energy Regulatory Commission’s Order 787. (See FERC Rejects Bid to Broaden Scope of Gas-Electric Info Sharing.)

The pipelines said they are willing to sign contracts to “firm up” services for generators that do not have primary firm service. The MOU notes that the pipelines may require additional facilities to provide firm service.

Each of the pipelines will provide PJM a description of services they are offering to generators that could satisfy the RTO’s Capacity Performance requirements. They also agreed to provide PJM a summary of services that have been requested by generators and the status of those requests. PJM may share any information obtained under the MOU with the Independent Market Monitor.

In return, PJM will provide the pipelines with performance requirements for gas-fired generators serving as capacity resources, including a demonstration of access to firm gas during the peak hours of the electric day and evidence of hourly flexibility — ensuring that generators will not seek compensation due to an inability to procure gas outside the normal scheduling window.

“This agreement sets the stage for greater coordination between electric generators and the natural gas pipeline industry,” said PJM Chief Operations Officer Mike Kormos in a statement. “As electricity-generating facilities increasingly turn to natural gas, it is important that we all communicate clearly to assure reliable service.”

“Continued dialogue will result in more informed decisions by the PJM market participants that operate and rely upon gas-fired electric generators,” said Don Santa, CEO of the Interstate Natural Gas Association of America.

According to data from the U.S. Department of Energy, natural gas surpassed coal as the country’s top source of electric power generation for the first time in April.

The country’s historic fuel shift was the topic of this year’s PJM Grid 20/20. (See PJM Grid 20/20: Who Will Build the Pipelines?)

The pipelines signing the MOU are Dominion Cove Point LNG; Dominion Transmission; Columbia Gas Transmission; National Fuel Gas Supply; Natural Gas Pipeline Co. of America; Tennessee Gas Pipeline; Texas Eastern Transmission; Texas Gas Transmission; and Transcontinental Gas Pipe Line.

The agreement will run through June 2016, after which it will continue on a month-to-month basis unless terminated by the parties.