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Firms rip expanded gas pricing: industry opposes FERC's Phase II incremental plans

Journal Article · · Energy User News; (United States)
OSTI ID:5525059
The Federal Energy Regulatory Commission (FERC) has been asked by industrial users of natural gas to repeal the Phase II rules for incremental pricing. Industrial users, who plan to lobby through their legislators, claim that higher gas prices will force them to switch to oil or go out of business. Pressures on FERC to expand the exemptions to incremental pricing raise the question of where to draw the line without being discriminatory. There are indications that FERC may choose to let Congress use its veto to kill the ruling. The users agree with the need to deregulate gas prices, but question the need for incremental pricing as a way to convince Congress that the market is ready for deregulation. Increased fuel costs under the three-tier pricing scheme will reduce industrial margins to the point where market shares will be lost and the balance of trade will be further damaged. (DCK)
OSTI ID:
5525059
Journal Information:
Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 5:4; ISSN EUSND
Country of Publication:
United States
Language:
English