Indefinite escalators in gas contracts could cause decontrol price spike

Journal Article · · Am. Gas Assoc. Mon.; (United States)

OSTI ID:5597153

Schlesinger, B; German, M I; Hay, N E; Tucker, L; Barcella, M L

An A.G.A. analysis has projected wellhead-gas prices, sales, home-heating costs, and consumer costs under decontrol as called for by the Natural Gas Policy Act and under an accelerated-decontrol alternative that would phase out all wellhead price controls in 3 years. The analysis also incorporated the effects of indefinite price-escalator clauses that now exist in some 67% of all gas purchase contracts. The analysis concludes that these clauses - unless prevented or delayed - will force wellhead-gas prices to exceed market levels, that is, levels expected under free-market conditions.

• Research Organization: American Gas Association, Inc.
• OSTI ID: 5597153
• Journal Information: Am. Gas Assoc. Mon.; (United States), Journal Name: Am. Gas Assoc. Mon.; (United States) Vol. 63; ISSN AGAMA
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
031000* -- Natural Gas-- Legislation & Regulations
CONTRACTS
DEREGULATION
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INDUSTRY
LAWS
MARKETING
NATIONAL ENERGY ACT
NATURAL GAS
NATURAL GAS INDUSTRY
NATURAL GAS POLICY ACT
PRICES
SALES