How much does the design of America’s energy market affect the environment? More than one might expect.
Last week, the Federal Energy Regulatory Commission (FERC), the agency responsible for regulating the wholesale natural gas and electricity markets, issued a proposed policy statement designed to encourage pipeline operators to replace their leakiest equipment: compressor stations. Reciprocating compressors are an essential part of the nation’s gas delivery system. They help move natural gas through cross-country pipelines to utilities that then deliver the fuel to its end customer. A challenge, however, is that aging compressor stations are more likely to leak as they help pump the gas to its final destination, and hundreds of these units have not been updated since the 1940’s. These leak-prone units are one of the largest sources of methane emissions —a potent greenhouse gas that can also cause explosions in some cases.
The cost to replace just one “vintage” unit can be tens of millions of dollars — one reason pipeline operators have been slow to update this equipment. Fortunately, FERC’s new proposal would provide a pathway for pipelines operators to recover the significant cost of refitting their systems with modern, safer, and more efficient compressors. Read More