Impact of the Great Plains coal gasification decision on a coal gas industry

Journal Article · Thu May 08 04:00:00 EDT 1980 · Public Util. Fortn.; (United States)

OSTI ID:5398205

Zipp, J F

In approving the special tariff and financing features of the Great Plains coal-gasification project, the Federal Energy Regulatory Commission took the first major federal action toward encouraging the construction of a commercial-sized synthetic-fuels facility, asserts the law firm of Morley, Caskin and Generelly. Owned by Great Plains Gasification Associates - a partnership of five pipeline companies - the commercial-sized plant qualifies for FERC approval under the commission's RD and D regulations. The special financing terms for the project will require customers of existing natural gas companies to bear the costs incurred by the project regardless of its success in operation or the amount of gas produced for the customer's utilization. This RD and D rate treatment serves to mitigate market forces and thus operates as an effective subsidy for the pipeline industry. If this or a similar regulatory subsidy is extended to other coal-gas projects, the pipeline industry could take the lead in the nation's synfuels program.

• OSTI ID: 5398205
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 105; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

01 COAL, LIGNITE, AND PEAT
010404* -- Coal
Lignite
& Peat-- Gasification
COAL GASIFICATION PLANTS
CONSTRUCTION
ENERGY SYSTEMS
FINANCIAL INCENTIVES
FINANCING
FLUIDS
FUEL GAS
FUELS
GAS FUELS
GASES
INDUSTRIAL PLANTS
INDUSTRY
NATIONAL ORGANIZATIONS
NATURAL GAS DISTRIBUTION SYSTEMS
PRICES
SYNTHETIC FUELS INDUSTRY
US DOE
US FERC
US ORGANIZATIONS