RALEIGH, N.C. — The Carolina Utility Customers Association (CUCA) has joined forces with forty-eight other organizations in supporting increased natural gas pipeline capacity in the United States. CUCA threw its support behind a recent letter sent by the Industrial Energy Consumers of America (IECA) to the U.S. Senate urging the passage of permitting reform legislation to increase natural gas pipeline capacity.
“Increased natural gas pipeline capacity is crucial for strengthening America’s economy by reshoring manufacturing jobs and ensuring reliable power generation,” said Kevin Martin, Executive Director of CUCA. Martin emphasized the critical need for more natural gas pipelines in North Carolina and the broader Zone 5 region, which includes North Carolina, South Carolina, and Virginia.
“CUCA continues to advocate for the expansion of natural gas pipelines in North Carolina because Zone 5 is currently facing significant capacity constraints that affect all three states in several critical ways,” said Martin. “First, capacity constraints lead to higher basis costs for natural gas supplies, adversely impacting all natural gas customers, particularly large-volume users. Second, the capacity constraints limit the ability of existing manufacturers to expand operations, as they depend on natural gas for their processes or as feedstock for their products.”
Martin continued, “Third, these constraints lead to more frequent natural gas curtailments and Operational Flow Orders (OFOs), which restrict industrial users. Such interruptions are detrimental to manufacturing operations and can result in plant closures and job losses. Additionally, with the expansion of natural gas electric generation, the capacity constraints set the potential for the electric utilities’ generation needs to compete with industrial users for scarce capacity. Finally, the combined impact of capacity constraints across these three states and the growth of natural gas electric generation could lead to multi-state electric and natural gas outages.”
Martin concluded, “Reliable energy is fundamental to our economy. Without adequate natural gas capacity in Zone 5, we risk facing significant economic disruptions. Solar, wind, and battery are part of the solution, yet they cannot currently meet the total grid needs for electricity or replace natural gas as a fuel or feedstock in the near term.”
The necessity of expanding natural gas pipeline infrastructure is echoed by Paul N. Cicio, President of IECA, who stated, “No one is more impacted by inadequate natural gas pipeline capacity than the manufacturing sector. Few natural gas pipelines are being planned and built. The Energy Information Administration (EIA) reports that pipeline capacity increases in 2022 were the lowest in history.”
“On behalf of North Carolina’s manufacturing community, CUCA stands with IECA and the other organizations in calling for immediate legislative action to address these infrastructure needs,” Martin said. “Ensuring a reliable and affordable natural gas supply is crucial for the economic health and industrial growth of North Carolina and its neighboring states.”
About Carolina Utility Customers Association
Founded in 1983 by North Carolina manufacturers, Carolina Utility Customers Association (CUCA) is a 501 C (6) non-profit trade association representing large industrial manufacturers, or large energy users. CUCA exists to increase members’ competitiveness by maintaining utility service reliability and reducing energy-related operating costs through advocacy, intervention, and education. For more information, please visit https://cucainc.org/.
References:
- IECA Press Release, July 29, 2024
- The least U.S. interstate natural gas pipeline capacity on record was added in 2022, U.S. Energy Information Administration, March 2, 2023
- NERC, Long-Term Reliability Assessment, at 12 (2023)
- NERC, Long-Term Reliability Assessment, at 19 (Dec. 2022)
