Federal regulation of the pipeline industry: a summary review. [Effects on use of energy-conservation technology]

Technical Report · Tue May 31 04:00:00 EDT 1977

DOI:https://doi.org/10.2172/6306541· OSTI ID:6306541

Banks, W. F.

The principal purposes of this report are: (1) identification of the jurisdiction areas of the Federal pipeline-regulating agencies, and (2) examination of the amenability of the regulatory system to the introduction of energy-conservative new technology into the pipeline industry. The history, scope, and agency structure of state and Federal regulation are recounted and some gaps, overlaps, and ambiguities are identified. The only significant inhibitory effects upon technological innovation are found to derive from the FPC and ICC limits upon profit, the 1941 Justice Department consent decree limiting dividends to shipper-owned pipelines, and the income tax rules governing recovery of investment credits and startup losses. Effects of these limits are explored by simulation studies using the Systems, Science and Software pipeline economic model (PEM). Two new concepts of regulation are proposed which would neutralize the inhibitory effect of the present regulatory system and would motivate pipeline operators to conserve energy: (1) use of a ''national equivalent value'' in the economic tradeoff analyses which justify entry of a technological innovation into the rate base (valuation), and (2) a ''valuation allowance'' which would reverse the presently often-existing situation and insure that the pipeline operator would realize a greater profit from saving energy than from wasting it.

• Research Organization: Systems, Science and Software, La Jolla, CA (USA)
• Sponsoring Organization: USDOE
• OSTI ID: 6306541
• Report Number(s): SAN-1171-1/6
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
022000 -- Petroleum-- Transport
Handling
& Storage
03 NATURAL GAS
032000 -- Natural Gas-- Transport
Handling
& Storage
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294000* -- Energy Planning & Policy-- Fossil Fuels
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320205 -- Energy Conservation
Consumption
& Utilization-- Transportation-- Pipeline
DOCUMENT TYPES
ENERGY CONSERVATION
FINANCIAL INCENTIVES
GOVERNMENT POLICIES
INCOME
INDUSTRY
NATURAL GAS INDUSTRY
OWNERSHIP
PETROLEUM INDUSTRY
PIPELINES
PROFITS
REGULATIONS
REVIEWS
TAXES
TECHNOLOGY UTILIZATION