natural gas what future do you see for natural gas consumption? what do you make of judge cudahy’s...
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Natural Gas
What future do you see for natural gas consumption?
What do you make of Judge Cudahy’s warnings about our ability to make predictions like this?
Is restructuring of the natural gas industry a good idea? What exactly are its benefits? Does everyone benefit from it?
What were the original purposes of regulation in the first place? Are any of those goals at risk in a restructured natural gas industry?
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GENERATION TRANSMISSION DISTRIBUTION
Power Plant
Transmission lines
LDCEnd Users
Distribution lines
ELECTRICITY:
• History
• Terminology
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U.S.: Utility Generation by Primary Energy Source, 1998
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NUCLEAR31%
COAL22%
OIL6%
GAS16%
OTHER THERMAL0%
CONV. HYDRO11%
PUMP STOR. HYDRO1%
GEOTHERMAL0%
WIND12%
BIOMASS1%
EU ELECTRIC GENERATION MIX
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Utility Delivered Fuel Prices for Coal, Petroleum, and Gas, 1988-1998 (1998 Dollars)
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GENERATION TRANSMISSION DISTRIBUTION
Transmission lines
LDCEnd Users
Distribution lines
IOU-owned plant
Federally-owned plant
QF/IPP-owned plant
Municipally or REA-owned plant
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GENERATION TRANSMISSION DISTRIBUTION
Power Plant
Transmission lines
End Users
Distribution lines
IOUs
Rural Coops
State or Municipal
Utility
Power Marketers
Who regulates retail sales by these LDCs?
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GENERATION TRANSMISSION DISTRIBUTION
Power Plant IOUs
Rural Coops
State or Municipal
Utility
Retail Customer
Retail Customer
Retail Customer
WHOLESALE RATES:
• Which sales covered? (Attleboro case; SoCalEd case)
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Interconnections of the North American Electric Reliability Council in the Contiguous United States
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GENERATION TRANSMISSION DISTRIBUTION
Power Plant IOUs
Rural Coops
State or Municipal
Utility
Retail Customer
Retail Customer
Retail Customer
WHOLESALE RATES:
• Which sales covered? (Attleboro case; SoCalEd case)
• “Just and reasonable” FPC v. Conway Corp. (USSC 1976)
• Changed circumstances: SDE&G
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North American Electric Reliability Council (NERC) Regions for the Contiguous United States and Alaska
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U.S. Independent System Operators in Operation, 1999
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Estimated Average Revenue per Kilowatthour for All Sectors at Electric Utilities by State, 1999