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By Mark Bernstein

Investigate the advantages, hazards, and implications of the elevated use of traditional fuel to satisfy California's turning out to be power wishes.

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Implications and Policy Options of California's Reliance on Natural Gas

Examine the advantages, dangers, and implications of the elevated use of ordinary gasoline to satisfy California's becoming power wishes.

Extra resources for Implications and Policy Options of California's Reliance on Natural Gas

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I and II. Chicago, IL. GRI. Gas Research Institute (2001). GRI Baseline Projection Data Book. Des Plaines, IL. GRI. March. Table HSM-80. Gas Research Institute (2000). Natural Gas Storage Overview in a Changing Market Environment. GRI-99/0200. Chicago. GRI. February. , M. Bernstein, P. Holtberg, C. Pernin, B. Vollaard, M. Hanson, K. Anderson, D. Knopman (2002). Assessing Gas and Oil Resources in the Intermountain West. RAND MR-1553-WFHF. Meyers, R. (2001). Energy Division report on the April 17, 2001 Workshop to Discuss California Natural Gas Infrastructure.

Natural Gas Storage and Pipeline Relationships Pipeline delivery capacity is typically less than peak-day natural gas demand. The pipeline system and natural gas storage facilities work together to meet peak demand. The release of gas from the storage facilities increases the amount of gas delivered to customers beyond that available to the state from pipelines; during periods of relatively low load, operators refill storage facilities. Critical to the successful operation of the system is excess pipeline capacity under normal operating conditions.

Based on this range, the peak summer demand could rival the winter peak in years with warm weather. This level of summer demand will limit the storage operator’s ability to help meet wintertime peak demand, and natural gas storage will become increasingly important. Questions for policy makers include the following: • How can we ensure that the electric generators will contract for storage capacity and inject sufficient quantities of gas into storage to meet requirements? • How can we ensure that adequate storage facilities will be developed as overall gas demand grows?

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