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Utility Seeks To Mandate Retail Natural Gas Suppliers Report Emissions Information About Their Supply
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Washington Gas Light proposed to the District of Columbia Public Service Commission that retail natural gas suppliers on its system should be required to report information concerning the "known emissions intensity" of their natural gas supply for certain products
WGL's sought requirement was made as part of its proposal to implement D.C.'s climate goals
WGL proposed an annual reporting requirement that would require retail suppliers, also known as competitive service providers (CSPs), to report their volumes of "differentiated" gas supplies which have a different emissions intensity than average commodity supply.
WGL specifically said that retail suppliers should annually report their volumes and the known emissions intensity of:
• "Differentiated" natural gas sold (such as gas certified for lower upstream emissions
intensity compared to the average associated with natural gas extraction and production),
• Treated biomethane, and
• "Market mechanism paired products" (such as carbon offset products, gas volumes that have been matched with carbon credits)
WGL said that these examples of differentiated gas supplies, which the LDC proposed to be reported by retail suppliers, is meant to be non-exhaustive
"Other differentiated natural gas supplies or products that [WGL] may be unaware of should also be given consideration," WGL said
WGL said that WGL itself would be subject to the same reporting requirement as it has proposed for retail suppliers
WGL observed that retail suppliers supply a "high proportion" of natural gas to customers in D.C., "without providing fulsome reporting on the emissions intensity of those supplies."
WGL said that WGL supplied only about 50% of the volumes delivered within the past five years, representing deliveries to firm sales service customers
WGL said that volumes from retail suppliers make up the rest of the deliveries, with such volumes alleged to represent, "an average of over 830,000 MTCO2 in combustion-related emissions per year during this period."
WGL observed that retail suppliers may be supplying customers with products which have lower emissions intensities than fossil natural gas, but WGL has no visibility into such CSP products
WGL said that its proposed reporting requirement from retail suppliers, "will lead to a clearer understanding of the emissions associated
with the Washington Gas customer base by requiring CSPs to meet additional reporting
requirements."
WGL said that, "Transparent reporting could catalyze broader acceptance, promotion, and utilization by CSPs and their customers for differentiated gas products or associated market mechanisms."
WGL further said that, "With the appropriate guardrails, methodology, and transparency, enhanced reporting on differentiated gas products and associated market mechanisms can serve as an effective and affordable emissions reduction tool to add to the District’s portfolio of solutions."
FC 1167
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August 6, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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