The energy industry is in the midst of a massive transformation. Natural gas fired power plants are now the dominant source of electric power in the U.S., and according to numerous studies, natural gas will continue to have a role in our future energy system — even in stringent greenhouse gas reduction scenarios. For the first time ever, renewables supplied more generation than coal in April. New technologies, evolving customer expectations and state laws directing greenhouse gas reductions are driving significant changes in the way we use and consume energy. The pace of this change will be even further accelerated as we turn to electrification as a means of decarbonization.
Regulators must reevaluate their policies and rules to ensure they are keeping up with these major changes. This is particularly true for the current revenue model of gas pipelines, which is built on the idea that “the more you spend, the more you earn.”
