A federal bill supports growing interest in natural gas demand response
The push is on for natural gas demand response technology, fueled in part by a Senate bill that would require the secretary of energy to establish a pilot program and collect data on its efficacy.
The Energy Infrastructure Demand Response Act of 2019, sponsored by Sen. Sheldon Whitehouse of Rhode Island and Sen. Angus King of Maine, proposes that the secretary of energy should carry out the pilot program under different scenarios, including in regions that are experiencing fuel shortages or natural gas infrastructure constraints that are causing consumers’ energy costs to increase.
The purpose of the program, according to the bill, is fourfold—to reduce the cost of energy for consumers, reduce market price volatility, increase reliability of the energy system, and achieve reductions in air emissions and other benefits. The bill is similar to a previous bill proposed in the last Congress that was partially implemented.
The 2019 bill directs the U.S. energy secretary to collect data on reduction in natural gas usage, decreases in the frequency and severity of natural gas infrastructure constraints, and changes in energy costs and reliability.
Natural gas demand response technology is still somewhat new, but several AGA members have initiated pilot programs in their service territories.
“SoCalGas provides its customers with a suite of programs and services that offers solutions to help them save energy and money. This includes our natural gas demand response program, one of the first such programs in the nation,” Dan Rendler, director of customer programs and assistance at Southern California Gas Company, told American Gas. “While only in its third season, it has shown to be beneficial for our customers. Most notably, it helps them conserve energy in peak times, which lowers their utility bills and reduces their environmental impact.”
This season, 40,000 households and 45,600 smart thermostats were enrolled through one of six participating device manufacturers, Rendler said.
Consolidated Edison’s program allows customers to earn up to $4,500 per winter for every 100 therms they pledge to reduce.
In March, the utility announced that it would no longer be accepting applications for new natural gas connections in most of its Westchester service area until it could align demand with available supply. Con Edison still accepts new interruptible natural gas customers in the moratorium area who have the capability to switch to oil when natural gas usage levels demand it.
“We want to support continued economic growth and a cleaner environment,” Con Edison spokesperson Robert McGee told American Gas. “The moratorium became necessary because of limited natural gas capacity in our service area. We want to pursue any and all remedies that will provide affordable heating and cooking solutions for our customers.”
