Oil glut forcing NE gas rate cuts
Industrial users with dual-fuel capability may soon find natural gas cheaper as gas utilities try to adjust their rates in anticipation of cuts in surplus No. 6 oil. The price advantage of gas over oil has dropped from about $3 per million Btu to about $1 per million Btu on a national average, and the gap has closed in some areas of New England. Natural-gas utilities are applying to state regulators for rate relief in order to remain competitive. Gas companies already offer interruptible rates to customers who agree to switch to their alternative fuel upon request. They are now looking to year-long contract with limited interruption and other rate schemes. A table presents DOE industrial price projections by region for six fuels for 1979, 1985, 1990, and 1995. (DCK)
- OSTI ID:
- 5559960
- Journal Information:
- Energy User News; (United States), Vol. 7:11
- Country of Publication:
- United States
- Language:
- English
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POLICY AND ECONOMY
03 NATURAL GAS
FUEL SUPPLIES
PRICES
INDUSTRY
NATURAL GAS INDUSTRY
COMPETITION
ECONOMIC IMPACT
FUEL SUBSTITUTION
PRICING REGULATIONS
ENERGY SUPPLIES
REGULATIONS
294003* - Energy Planning & Policy- Natural Gas
030600 - Natural Gas- Economic
Industrial
& Business Aspects