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Title: An exploration of an alternative rate structure as a means of integrating equity and efficiency in a municipally owned natural gas distribution utility

Abstract

After two decades of a somewhat golden age for gas utilities and regulators, the 1970's saw a changing energy market characterized by curtailments and allocations in the natural gas industry. The Natural Gas Policy Act of 1978 provided incentives for new supplies but at increased prices. During a period of rapidly calculating natural gas prices (1979-1984), municipal owned public utility operators were criticized for not meeting the needs of the poor and other deprived members of society. The thesis of this paper is that this criticism of operators of municipal owned natural gas utilities stemmed from the observer conceiving of the utility as a social agency of government. This paper investigates the background of the problem and public utilities' obligations because of their status as regulated monopolies. The municipal owned natural gas utility's responsibility in meeting the social functions of government are considered. This paper argues that such a utility should be viewed as a business not a societal agency. Use of a utility's rate structure for satisfying the dictates of a system of distributive justice is investigated. The attempts made by state and local governments (moratoriums on delinquent shutoffs, lifeline rates, etc.) have been ineffective and counter productive. Themore » utility's duty to offer service to all who request it; without discrimination among people similarly situated; to the limit of its capacity is considered with consumers duty to pay just bills. Arguments show that the rate structure, not quantity delivered, is the crucial factor in assuring distributive justice. Pricing is viewed from a philosophical perspective also an economic perspective. The only need identified for equity and economic efficiency is in rate structures.« less

Authors:
Publication Date:
Research Org.:
Virginia Commonwealth Univ., Richmond, VA (USA)
OSTI Identifier:
6840273
Resource Type:
Miscellaneous
Resource Relation:
Other Information: Thesis (Ph. D.)
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; PUBLIC UTILITIES; SOCIAL IMPACT; NATURAL GAS INDUSTRY; NATURAL GAS POLICY ACT; RATE STRUCTURE; RETAIL PRICES; INDUSTRY; LAWS; NATIONAL ENERGY ACT; PRICES; 290200* - Energy Planning & Policy- Economics & Sociology; 294003 - Energy Planning & Policy- Natural Gas

Citation Formats

Lynch, D A. An exploration of an alternative rate structure as a means of integrating equity and efficiency in a municipally owned natural gas distribution utility. United States: N. p., 1989. Web.
Lynch, D A. An exploration of an alternative rate structure as a means of integrating equity and efficiency in a municipally owned natural gas distribution utility. United States.
Lynch, D A. 1989. "An exploration of an alternative rate structure as a means of integrating equity and efficiency in a municipally owned natural gas distribution utility". United States.
@article{osti_6840273,
title = {An exploration of an alternative rate structure as a means of integrating equity and efficiency in a municipally owned natural gas distribution utility},
author = {Lynch, D A},
abstractNote = {After two decades of a somewhat golden age for gas utilities and regulators, the 1970's saw a changing energy market characterized by curtailments and allocations in the natural gas industry. The Natural Gas Policy Act of 1978 provided incentives for new supplies but at increased prices. During a period of rapidly calculating natural gas prices (1979-1984), municipal owned public utility operators were criticized for not meeting the needs of the poor and other deprived members of society. The thesis of this paper is that this criticism of operators of municipal owned natural gas utilities stemmed from the observer conceiving of the utility as a social agency of government. This paper investigates the background of the problem and public utilities' obligations because of their status as regulated monopolies. The municipal owned natural gas utility's responsibility in meeting the social functions of government are considered. This paper argues that such a utility should be viewed as a business not a societal agency. Use of a utility's rate structure for satisfying the dictates of a system of distributive justice is investigated. The attempts made by state and local governments (moratoriums on delinquent shutoffs, lifeline rates, etc.) have been ineffective and counter productive. The utility's duty to offer service to all who request it; without discrimination among people similarly situated; to the limit of its capacity is considered with consumers duty to pay just bills. Arguments show that the rate structure, not quantity delivered, is the crucial factor in assuring distributive justice. Pricing is viewed from a philosophical perspective also an economic perspective. The only need identified for equity and economic efficiency is in rate structures.},
doi = {},
url = {https://www.osti.gov/biblio/6840273}, journal = {},
number = ,
volume = ,
place = {United States},
year = {Sun Jan 01 00:00:00 EST 1989},
month = {Sun Jan 01 00:00:00 EST 1989}
}

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