FPC kills LNG increment pricing

Journal Article · Mon Jul 18 04:00:00 EDT 1977 · Energy User News; (United States)

OSTI ID:7084877

McCarthy, P

The Federal Power Commission (FPC), relenting to both government and industry pressure, has reversed an earlier policy that would force industrial natural gas users to pay the high costs for imported gas while residential and commercial customers would pay only regulated domestic gas rates. The controversial incremental pricing will revert back to traditional averaged, or rolled-in, pricing. Incremental pricing for low-priority users (those able to convert to alternate fuels) would have forced industry to pay all the costs of imported liquefied natural gas. The reversal came after Trunkline LNG Co. appealed the incremental pricing decision on the grounds that financing for the company's pipeline projects would be unavailable if the gas is too expensive to sell. The Administration proposes that utilities charge industrial customers for costs above the previous year's average rate, but not single out the users of any particular kind of gas. (DCK)

• OSTI ID: 7084877
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 2:28; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
031000 -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000* -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294003 -- Energy Planning & Policy-- Natural Gas
CHARGES
COMMERCIAL SECTOR
ECONOMIC IMPACT
ECONOMIC POLICY
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GASES
GOVERNMENT POLICIES
INDUSTRY
LIQUEFIED NATURAL GAS
NATURAL GAS
NATURAL GAS DISTRIBUTION SYSTEMS
PIPELINES
PUBLIC UTILITIES
REGULATIONS
RESIDENTIAL SECTOR