In the near future, the majority of investor-owned electric utilities will request, and ultimately win, rate increases. What can utilities do to alter consumer perceptions of higher bills?
Energy Information Administration
Congress revamps LNG and storage, giving broad new powers to FERC. Why the Feds still must consult with local authorities.
A major objective of the Energy Policy Act of 2005 (EPACT) is to counter the worsened conditions in the natural-gas market that began in 2000 and are expected to continue over the next several years—namely, tight natural-gas supplies and high, volatile gas prices caused by a distinct shift in the supply-demand balance. Any noticeable reductions in gas prices that might be effectuated by the act will have little impact on natural-gas prices for a number of years.
Congress allows market-based rates. How will FERC respond?
As a rare amendment to a venerable statute, EPACT05 § 312, New Natural Gas Storage Facilities, made headlines, adding an option for interstate, market-based storage rate making. It would encourage new storage facilities by permitting FERC to authorize market-based storage rates, even when the applicant is unable to demonstrate it lacks market power. After authorizing such rates, FERC periodically must review them.The problem with the new law is that it does not specify those review periods.
FERC must align the immediate self-interest of profit-maximizing entities with its own view of what is in the public interest.
Two obstacles must be overcome to achieve true competitive markets: reversal of the long-term underinvestment in transmission, and greater clarity in the legal and regulatory environments. How can the industry make the most of a somewhat defensive regulatory posture?
An economic perspective on long-term contracting for gas pipeline service.
Presenting a program to stimulate robust coal-gasification technology deployment at low federal cost.
Federal loan guarantees and other incentives can clear the hurdles to near-term deployment of gasification technologies.
The Geopolitical Risks of LNG
To many energy-industry analysts, 2005 is a make-or-break year for the U.S. gas market. If we don't have at least several liquefied natural gas (LNG) terminals in construction by the end of the year, the country arguably will face serious gas-supply shortages and price spikes beginning in about 2008.1
A 10-year horizon: 2005 - 2015.
The states are getting into the act on greenhouse emissions, and the power industry is getting more proactive. What policy measures are appropriate?
Commercialization of methane recovery from coastal deposits of methane hydrates could head off an impending gas shortage.