The economic effects of unbundled transportation services in the natural gas pipeline industry

Journal Article · · Transportation Journal (U.S); (United States)

OSTI ID:7248782

Cramer, C A ^[1]

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1. Univ. of Wyoming, Laramie (United States)

Like electric power transmission facilities, access to the gas transmission structure may affect the vigor of gas competition both upstream at the field, and downstream in the local end-use markets. Nevertheless, the pipeline network itself remains a bottleneck transportation facility. Entry barriers are salient. Pipeline construction requires a significant capital investment. Furthermore, a regulatory certificate of convenience and necessity may be required of the new entrant. Traditional cost-of-service regulation has favored the established transportation arrangement. Older, depreciated pipelines have a smaller rate base and thus represent lower cost-of-service providers. Finally, the number of interstate pipeline companies is on the decline, and the industry is becoming increasingly concentrated. This paper examines regulatory policy and its effects on the gas-pipeline industry in the '80s. One way to clarify these issues is to illustrate the roles that unbundled transportation services have played. From this exposure it is possible to determine whether the emerging trends towards deregulation and capacity brokering are in the public interest or public detriment.

• OSTI ID: 7248782
• Journal Information: Transportation Journal (U.S); (United States), Vol. 31:2; ISSN 0041-1612
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
29 ENERGY PLANNING
POLICY AND ECONOMY
NATURAL GAS DISTRIBUTION SYSTEMS
ECONOMICS
CAPACITY
COMPETITION
DEREGULATION
ECONOMIC IMPACT
MARKET
NATURAL GAS INDUSTRY
PIPELINES
REGULATIONS
INDUSTRY
032000* - Natural Gas- Transport
Handling
& Storage
294003 - Energy Planning & Policy- Natural Gas