Regulatory treatment of natural gas exploration by distributors

Journal Article · Thu Mar 30 04:00:00 EST 1978 · Public Util. Fortn.; (United States)

OSTI ID:5097761

Fieldman, A

Many natural gas utilities have found it necessary to engage in direct pursuit of supplemental gas supplies, resulting in the surfacing of regulatory issues they had not anticipated. The author observes that no local regulatory agency has as yet enunciated a complete policy with regard to the multitude of ramifications of the problem. A local regulatory policy may have the opposite effect from what it appears. One form of above-the-line treatment is not equivalent to all other such forms and may be more adverse to inducing exploration than an outright below-the-line rate-making policy. The author reviews many experiences by utilities as to how exploration funding was financed and gas distribution later if the exploration venture were successful or not. The regulatory aspects of the cases are discussed. It is desirable that distributors have some sort of formal understanding with their state regulators in the matter of rate-making treatment prior to the time that exploration and development funds are committed, according to the author. (MCW)

• OSTI ID: 5097761
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 101:7; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030200 -- Natural Gas-- Reserves
Geology
& Exploration
29 ENERGY PLANNING, POLICY, AND ECONOMY
294003* -- Energy Planning & Policy-- Natural Gas
CAPITAL
COST
DECISION MAKING
DISTRIBUTION
ENERGY SOURCES
ENHANCED RECOVERY
EXPLORATION
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GAS UTILITIES
GASES
GOVERNMENT POLICIES
INDUSTRY
NATURAL GAS
NATURAL GAS DISTRIBUTION SYSTEMS
NATURAL GAS INDUSTRY
PUBLIC UTILITIES
RATE STRUCTURE
RECOVERY
REGULATIONS
RISK ASSESSMENT
STATE GOVERNMENT