Further evaluation of natural gas pricing proposals. Analysis Memorandum AM/IA/78-17
This paper presents an extension of the previous Energy Information Administration analysis of the impact of several natural gas pricing proposals currently before the Congress, as compared to continued current regulations on natural gas markets. The principal new focus is on a different assumption about the way natural gas is priced to consumers under the Senate bill (H.R. 5289). The earlier analysis used the assumption that incremental pricing provisions legally imposed on interstate pipelines would be passed through by distribution companies to users. This analysis uses the assumption that the incremental pricing provisions do not go beyond the pipeline, and that prices of new supplies are rolled-in. The two analysis may be regarded as giving upper and lower limits to the actual outcome, which presumably would entail some roll-in and some passthrough, rather than being 100% one way or the other. The only significant impacts of changing the assumptions regarding downstream pricing provisions in the Senate bill are: changes in projected sectoral prices; and related projected sectoral volumes of consumption. The effect of assuming rolled-in pricing for the Senate bill as opposed to incremental pricing is to raise the gas price to the residential sector and lower it to the commercial, industrial, and raw material sectors. Except for the commercial sector, all retail gas prices under the rolled-in version of the Senate bill are higher than under the compromise proposal. Under this assumption the estimated impact of the compromise proposal is a projected residential price that is higher than that for the House bill, but lower than that for the Senate bill assuming rolled-in pricing.
- Research Organization:
- Department of Energy, Washington, DC (USA). Energy Information Administration
- OSTI ID:
- 6088219
- Report Number(s):
- DOE/EIA-0102/10
- Country of Publication:
- United States
- Language:
- English
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