A portfolio approach to managing fuel supply

Journal Article · Tue Jun 01 04:00:00 EDT 1993 · Public Utilities Fortnightly; (United States)

OSTI ID:6332421

Frevert, M

By 2005, the Electric Power Research Institute forecasts natural gas consumption by the electric power industry at double 1990 levels. Gas industry supply studies complement these projections of increasing demand, indicating an economically recoverable resource base of over 1,300 Tcf in the lower 48 states. Stricter environmental controls on emissions, new incentives for cogeneration, and repealed restrictions on gas use all point to enhanced regulatory receptiveness to an increase in gas-fired generation. At the same time, shorter-term spot market gas sales have replaced traditional long-term, firm, pipeline merchant service with increased reliance on the interruptible spot market. Unfortunately, short-term pricing and interruptible service do not reflect the gas industry's true ability to provide electric utilities with stable prices and reliable supplies. Reliance on the unpredictable spot market, combined with two decades of regulatory and economic uncertainty in the gas and electric utility industries, can discourage incremental supply- and demand-side capital investment.

• OSTI ID: 6332421
• Journal Information: Public Utilities Fortnightly; (United States), Journal Name: Public Utilities Fortnightly; (United States) Vol. 131:11; ISSN PUFNAV; ISSN 0033-3808
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
294003 -- Energy Planning & Policy-- Natural Gas
296000* -- Energy Planning & Policy-- Electric Power
DUAL-PURPOSE POWER PLANTS
ELECTRIC UTILITIES
ENERGY CONSUMPTION
ENERGY POLICY
ENERGY SOURCES
ENVIRONMENTAL POLICY
FLUIDS
FOSSIL FUELS
FOSSIL-FUEL POWER PLANTS
FUEL CONSUMPTION
FUEL GAS
FUELS
GAS FUELS
GASES
GOVERNMENT POLICIES
NATURAL GAS
POLLUTION REGULATIONS
POWER PLANTS
PRICES
PUBLIC UTILITIES
REGULATIONS
SUPPLY AND DEMAND
THERMAL POWER PLANTS