Reason for Pessimism
- California State Univ., Fullerton, CA (United States)
It is hard to believe that the Federal Energy Regulatory Commission (FERC) issued Order 436 only eight years ago. In that short time, the forces the order set in motion have transformed the gas industry beyond recognition. The interstate pipelines' monopoly power has crumbled with their conversion from resellers to transporters. New state policies promise to do likewise for many local distribution companies (LDCs). Once-captive customers of both the pipelines and LDCs now arrange their own gas supplies in ever more competitive markets. Prior to the Energy Policy Act of 1992, producers and users of electricity could only imagine open access to transmission. Resisted almost to the end by many utilities, the new law loosens the Public Utility Holding Company Act's strictures on non-utility generation and gives the FERC new powers to order wheeling of both utility and non-utility power. In December 1992, outgoing FERC Chairman Martin Allday made the analogy between electricity and gas explicit, calling open access the very heart of the matter in gas, and the principle that would guide the FERC's upcoming electrical rulemakings. An open-access analogy is in some ways misleading because of the differing provisions of gas and electricity law. But even if it is correct, there are reasons to be pessimistic about a competitive future for electricity. Those reasons lie in policy and politics.
- OSTI ID:
- 5196586
- Journal Information:
- Fortnightly; (United States), Journal Name: Fortnightly; (United States) Vol. 131:17; ISSN FRTNE8
- Country of Publication:
- United States
- Language:
- English
Similar Records
Regulation through competition
Restructuring the natural gas industry: Order No. 436 and other regulatory initiatives