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Title: Public Utility Regulatory Policies Act of 1978: Natural Gas Rate Design Study

Technical Report ·
DOI:https://doi.org/10.2172/5245935· OSTI ID:5245935

First, the comments on May 3, 1979 Notice of Inquiry of DOE relating to the Gas Utility Rate Design Study Required by Section 306 of PURPA are presented. Then, comments on the following are included: (1) ICF Gas Utility Model, Gas Utility Model Data Outputs, Scenario Design; (2) Interim Model Development Report with Example Case Illustrations; (3) Interim Report on Simulation of Seven Rate Forms; (4) Methodology for Assessing the Impacts of Alternative Rate Designs on Industrial Energy Use; (5) Simulation of Marginal-Cost-Based Natural Gas Rates; and (6) Preliminary Discussion Draft of the Gas Rate Design Study. Among the most frequent comments expressed were the following: (a) the public should be given the opportunity to review the final report prior to its submission to Congress; (b) results based on a single computer model of only four hypothetical utility situations cannot be used for policy-making purposes for individual companies or the entire gas industry; (c) there has been an unobjective treatment of traditional and economic cost rate structures; the practical difficulties and potential detrimental consequences of economic cost rates are not fully disclosed; and (d) it is erroneous to assume that end users, particularly residential customers, are influenced by price signals in the rate structure, as opposed to the total bill.

Research Organization:
Department of Energy, Washington, DC (USA). Economic Regulatory Administration
OSTI ID:
5245935
Report Number(s):
DOE/RG-0035/2
Country of Publication:
United States
Language:
English