FERC orders rate design to reduce gas costs
A plan initiated by the Federal Energy Regulatory Commission (FERC) offers pipeline companies financial incentives to keep their prices low enough to retain utility customers who might otherwise switch to residual oil. FERC will target pipelines whose costs approach those of competing fuels. The goal is to shift the burden of underutilized pipelines from consumers and distribuors back to the pipelines. A sliding scale for pipeline profits and targeted sales is a possible design. The five-member FERC commission ordered the incentive rate design for a Tennessee Gas Pipeline Co. hearing, and asked consumers to suggest rate designs. Future intervenors will have to make their own requests. Industry supports the FERC order, but wants the incentives to be standardized. (DCK)
- OSTI ID:
- 6883861
- Journal Information:
- Energy User News; (United States), Vol. 7:41
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
03 NATURAL GAS
NATURAL GAS
RATE STRUCTURE
NATURAL GAS DISTRIBUTION SYSTEMS
REGULATIONS
FINANCIAL INCENTIVES
FUEL SUBSTITUTION
PIPELINES
PRICES
US FERC
ENERGY SOURCES
ENERGY SYSTEMS
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
NATIONAL ORGANIZATIONS
US DOE
US ORGANIZATIONS
294003* - Energy Planning & Policy- Natural Gas
030600 - Natural Gas- Economic
Industrial
& Business Aspects