Natural gas contracts in an emerging competitive market

Conference · Wed Jan 01 00:00:00 EST 1992

OSTI ID:6929014

Sutherland, R J

Natural gas is being viewed by many as the fuel of the 1990s and beyond because of its environmental qualities, relatively low cost and significant domestic resource base. However, in the Fall of 1991, a group of electric utility executives met with then Deputy Secretary of Energy Henson Moore and asserted that an inability to obtain long term gas contracts meant that supplies are unreliable and construction of gas-fueled generating stations is being discouraged. This study was requested by the Deputy Secretary to address the issues surrounding long-term gas contracts and supply reliability. The relationship between supply reliability and contracts is explained in terms of the number of buyers and sellers in a market. With the appropriate state regulatory policies, utilities can contract for gas and obtain reliable supplies at competitive market prices. Public utility commissioners are encouraged to permit utilities a free choice in signing gas contracts, but to allow only competitive market prices to be reflected in allowable fuel costs.

• Research Organization: Argonne National Lab., IL (United States)
• Sponsoring Organization: USDOE; USDOE, Washington, DC (United States)
• DOE Contract Number: W-31109-ENG-38
• OSTI ID: 6929014
• Report Number(s): ANL/EAIS/CP-77643; CONF-9210219-1; ON: DE93002923
• Resource Relation: Conference: 14. annual North American conference of the International Association for Energy Economics, New Orleans, LA (United States), 26-28 Oct 1992
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
ELECTRIC UTILITIES
CONTRACTS
NATURAL GAS
MARKET
NATURAL GAS INDUSTRY
AVAILABILITY
PRICES
REGULATIONS
SPOT MARKET
US FERC
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INDUSTRY
NATIONAL ORGANIZATIONS
PUBLIC UTILITIES
US DOE
US ORGANIZATIONS
030600* - Natural Gas- Economic
Industrial
& Business Aspects