Indefinite price escalation and minimum take-or-pay clauses: the villains in the piece

Journal Article · Thu Oct 28 00:00:00 EDT 1982 · Public Util. Fortn.; (United States)

OSTI ID:6738801

Falck, E

The Natural Gas Policy Act (NGPA) of 1978 eliminated the regulatory due process aspects of rate adjustment and left the Federal Energy Regulatory Commission with little control over producer prices. Natural-gas distribution companies are responding to the fly-up of producer prices by amending their contracts to reduce the volume under take-or-pay arrangements. Distributors, arguing that demand for gas is price-sensitive, say they must protect its marketability and intervene to keep prices reasonable. Market distortions resulting from the NGPA will mean that some states cannot compete with interstate pipelines unless Congress proceeds with immediate decontrol. (DCK)

• OSTI ID: 6738801
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 110:9; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294003* -- Energy Planning & Policy-- Natural Gas
CONTRACTS
DEREGULATION
ECONOMIC ELASTICITY
ENERGY SOURCES
ENERGY SYSTEMS
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
NATURAL GAS
NATURAL GAS DISTRIBUTION SYSTEMS
PIPELINES
PRICING REGULATIONS
REGULATIONS