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U.S. Department of Energy
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Restructuring the natural gas industry: Order No. 436 and other regulatory initiatives

Journal Article · · Energy Law J.; (United States)
OSTI ID:5558507

Federal Energy Regulatory Commission (FERC) Order No. 436 is the latest in a series of major regulatory initiatives that have impacted gas pricing, pipeline contracting provisions, spot market sales, and transportation. The policy followed by FERC reflects a faith in the free market to efficiently allocate resource at reasonable cost to consumers. In responding to deregulation mandates while retaining regulation of the price of old gas and of interstate transportation and sales for resale, FERC is unbundling gas costs from the fixed costs of providing service in hopes of improving price signals. It is also pushing pipelines to provide open access to inject competition. The long-term commitments needed by producers may be incompatible with the oscillations caused by market restructuring, but there is a possibility that the new approach will work.

Research Organization:
Birch, Horton, Bittner, Pestinger and Anderson, Washington, DC
OSTI ID:
5558507
Journal Information:
Energy Law J.; (United States), Journal Name: Energy Law J.; (United States) Vol. 7:1; ISSN ELJOE
Country of Publication:
United States
Language:
English