California Accord to Cure Market Power Problems

Fortnightly Magazine - November 15 1997
This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.

The California Public Utilities Commission has approved an agreement that will resolve a multifaceted case concerning pricing of services and operation of intrastate natural gas pipeline facilities by Pacific Gas and Electric Co.

Recharge the Economy with Renewable Energy Tax Credits

The agreement, known as the "Gas Accord," also initiated significant changes in the way PG&E operates its business by increasing competition and customer choice. To mitigate the effects of market power held by the company, the commission imposed a series of discounting restrictions on PG&E.

As reported earlier ("Gas Accord Unlocks PG&E Market Hold," Headlines, Oct. 15, p. 12), the case involve issues concerning PG&E's 1991 decision to build Line 401, the intrastate portion of a natural gas pipeline from Alberta, Canada to Kern River Station near Bakersfield, Calif. PG&E will pay about $300 million to settle lawsuits by potential competitors.

This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.