Changes in nautral gas consumption and rate structure in California

Technical Report · Fri Dec 15 04:00:00 EST 1978

OSTI ID:6315996

Borg, I T; Anderson, C J; Briggs, C; Sextro, R; Dorn, D W

Decreases in a natural gas consumption in California have been particularly noteworthy in the past three years in all end-use categories with the exception of steam electrical power generation. The decreases occurred in the same time frame as implementation of innovative rate structures. Declining-block structures were replace by inverted structures after passage of the Miller-Warren Energy Lifeline Act in 1975. Temperature-adjusted, average residential and commercial customer use in 1977 suggests that conservation on the order of 5 to 10% per month has occurred. A study of the many factors influencing the decrease suggests that reductions have been occurring since 1973 in response to general rate increases and that recent large changes, e.g. in 1977, relate to the drought that fostered a conservation ethic in the state. The rates associated with lifeline usage are below average commodity costs. This has led to marked increases in industrial gas rates as well as in other rates associated with high-volume use. Currently the rates are above spot prices and many contract prices for delivered No. 6 fuel oil (on a Btu-equivalent basis) but remain below prices for No. 2 distillate oil. The current low prices are a reflection of reesidual fuel oil surpluses on the west coast. Fuel switching, especially to oil, has contributed to the steady decrease in industrial gas use in California during the last decade. Other factors, such as relocation of plants, threats of curtailment, limitation on hook-ups, and conservation actions also have contributed to decreased industrial use.

• Research Organization: California Univ., Livermore (USA). Lawrence Livermore Lab.
• DOE Contract Number: W-7405-ENG-48
• OSTI ID: 6315996
• Report Number(s): UCRL-52631
• Country of Publication: United States
• Language: English

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32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
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ATMOSPHERIC PRECIPITATIONS
CALIFORNIA
CHARGES
CONSUMPTION RATES
ECONOMIC ELASTICITY
ELECTRIC UTILITIES
ENERGY CONSUMPTION
ENERGY SHORTAGES
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUEL SUBSTITUTION
FUELS
GAS FUELS
GASES
INDUSTRIAL PLANTS
NATURAL GAS
NORTH AMERICA
PUBLIC UTILITIES
RAIN
RATE STRUCTURE
SUPPLY AND DEMAND
USA
VARIATIONS
WESTERN REGION