National Petroleum Council reports validate industry action on gas electric coordination, and calls for permitting reform to protect affordability for consumers

The American Gas Association lauded two new studies released by the National Petroleum Council on Wednesday. The studies, requested by U.S. Secretary of Energy Chris Wright, validate the work underway and being led by AGA in coordination with the National Association of Regulatory Utility Commissioners to boost full energy system reliability through increased coordination between the natural gas and electric sectors. NPC and NARUC also delivered concrete recommendations on permitting reform, which AGA has said repeatedly is needed to help ensure rising demand can be met while protecting affordability for American families.

"America's energy future is at an inflection point, and the direction we drive our energy industry is key to determining our success or failure in meeting our country's economic and national security imperatives," said AGA President and CEO Karen Harbert. "AGA stands ready to deepen our coordination with the electric sector to develop the economy of the future and win the Artificial Intelligence (AI) race.

Growing reliance on natural gas for power generation, coupled with increasing demand for electricity, has strained pipelines in several regions of the United States. As a result, AGA has partnered with NARUC to administer Natural Gas Readiness Forums and regional meetings to boost coordination between the natural gas and electric sectors to help ensure preparedness for potential disaster and emergency situations. The Gas-Electric Coordination report from the National Petroleum Council endorsed and furthered this work, specifically recommending the readiness forums continue and putting in place further recommendations for increased accountability to ensure adequate energy supply when it is needed most.

Harbert continued, "In 1930, we built the Empire State Building in 410 days. Today, it takes a decade and Congressional action to build far more modest projects. It is critical that Congress, the federal government and state regulators take action now to correct our badly broken permitting system and greenlight new infrastructure projects so that we can meet the needs of the future while continuing to serve American families affordably, reliably and safely."

According to AGA, permitting reform is a key component of meeting rising demand while safeguarding affordability and reliability for American families and businesses. Significant delays in permitting and environmental reviews, along with years of legal challenges, increases costs substantially for critical infrastructure projects, deters investors and delays expansion of energy infrastructure to meet the needs of new customers. It took nearly a decade and an act of Congress to build the badly needed Mountain Valley Pipeline from 2014 to 2023, and other projects have faced similar roadblocks and delays. Read more about the NPC reports here.