Regulation through competition
The natural gas industry is in a difficult transition. The roles of producers, local distribution companies (LDC), end-users, and pipelines are changing in unprecedented ways, guided by Federal Energy Regulatory Commission (FERC) rulings. FERC is attempting to create a level playing field in an economic and legalistic environment shaped by monopoly. Despite process, additional adjustments remain. For example, LDCs are still by-passed by pipelines that are able to provide lower cost but higher volume service to large industrial customers. In addition, FERC is faced with anticompetitive rates, tariffs, and practices as pipelines and LDCs struggle to maintain their market power to assure recovery of their costs even as their customer base shrinks. The creation of an open access pipeline network should bring about efficient product pricing and facility utilization. This trend will expand the new roles adopted by old players and create new players as well - for example, marketers for small customers and aggregators for small producers. Regulation through increase competition will continue to be FERC's path to an efficient, economical nationwide natural gas sales and transportation system.
- OSTI ID:
- 6407910
- Journal Information:
- Forum for Applied Research and Public Policy (Knoxville, Tennessee); (USA), Journal Name: Forum for Applied Research and Public Policy (Knoxville, Tennessee); (USA) Vol. 4:2; ISSN 0887-8218; ISSN FARPE
- Country of Publication:
- United States
- Language:
- English
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CAPACITY
COMPETITION
COST
ECONOMICS
ENERGY SYSTEMS
INDUSTRY
MARKET
NATIONAL ORGANIZATIONS
NATURAL GAS DISTRIBUTION SYSTEMS
NATURAL GAS INDUSTRY
PIPELINES
PRICES
REGULATIONS
TRANSPORT
US DOE
US FERC
US ORGANIZATIONS