Wisconsin moves to foil US gas price rule

Journal Article · Mon Dec 03 04:00:00 EST 1979 · Energy User News; (United States)

OSTI ID:5620644

Ellis, P; Moore, W J

The Wisconsin Public Service Commission adopted in December 1979 local rules for incremental gas pricing that circumvent Federal regulations by keeping increased revenues in the states. Many heavily industrilized states have argued the Federal plan is unfair because it forces their boiler-fuel users, who will be paying higher prices after January 1, 1980, to subsidize residential and commercial, and exempt industries in nearby states. The effect of the Wisconsin decision on the state's exempted industrial, commercial, and residential users is that they probably will pay less for gas under the PSC plan than they would under the Federal mandated plan, and boiler users break even. But customers in other states will pay more for gas. The order raises the price of natural gas for industrial users, subjected January 1 to incremental pricing, to the price of No. 6 high-sulfur fuel oil. FERC said the surcharge would be the difference between the user's current cost of gas and the price of No. 6 residual fuel. FERC intended to use the additional revenues to protect interstate pipeline customers from increased gas prices. Under the Wisconsin plan, the additional money stays in the hands of local distribution companies, which will be forbidden from keeping this windfall. The additional revenues obtained through the incremental pricing then would be refunded to all customers not paying the higher price. The legal aspects of the action are discussed. (MCW)

• OSTI ID: 5620644
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 4:49; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
031000 -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000* -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294003 -- Energy Planning & Policy-- Natural Gas
BOILERS
CHARGES
COMMERCIAL SECTOR
COMPLIANCE
DECISION MAKING
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GAS UTILITIES
GASES
GREAT LAKES REGION
INCOME
INCREMENTAL-COST PRICING
INDUSTRY
LEGAL ASPECTS
NATIONAL ORGANIZATIONS
NATURAL GAS
NORTH AMERICA
PRICES
PUBLIC UTILITIES
RESIDENTIAL SECTOR
TAXES
US DOE
US FERC
US ORGANIZATIONS
USA
WISCONSIN