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The Margaret Chase Smith Center for Public Policy's Project for the Study of Public Regulation and the Environment, Maine's Future Energy Policy, Augusta Civic Center, Augusta, ME
(207) 581-1539
16-17
Association of Energy Engineers, The New Power Market: Opportunities for Producers, Sellers & Users of
Nearly 18 million households are strong candidates for conversion to natural gas heating. So says the
American Gas Association (A.G.A.). The AGA estimates that 7.6 million natural gas customers don't use gas for heating and about 10.2 million households lack gas service, although it is available in their neighborhoods. To maintain its heating market dominance, the industry plans to promote the advantages of gas to homebuilders as well as to existing and potential customers.
Speaking at the American Gas Association's Natural Gas Roundtable in Washington, DC, on February 13, FERC Commissioner William L. Massey called on parties within the natural gas industry to resolve the problem of decontracting (capacity turnback) on natural gas interstate pipelines. Nevertheless, he offered a bit of help from the Federal Energy Regulatory Commission (FERC).
For its part, said Massey, the FERC will remain flexible, as shown by its order allowing Natural Gas Pipeline Co.
Forecasts Send ROEs Wide of the Mark
In a recent "Offpeak" ("Forecasting is Just That," Jan. 1, 1996, p. 54), David Foti and Clay Denton report data showing the percentage of error found in various seven-year forecasts of natural gas prices (1988-94) produced by the American Gas Association (A.G.A.), Energy Information Administration (EIA), DRI/McGraw-Hill (DRI), Gas Research Institute, and WEFA Group. These errors ranged from approximately 50 to 95 percent.
Before the express train leaves the station, it's worth taking a look at the facts about new electric generating capacity in the United States.
Natural gas has become the primary energy source, accounting for about two-thirds of new capacity during the 1990. In contrast, market share for coal-which currently accounts for over 40 percent of all online capacity, and about 55 percent of online fossil-fuel capacity-is expected to grow only 10 to 15 percent in this decade.
Competition from Order 636 has gas customers rethinking their firm capacity options.
Just when everyone thought we had put Order 636 behind us, up pops perhaps our greatest challenge yet: the turnback (or "decontracting") of firm capacity on interstate natural gas pipelines. This phenomenon, now emerging on a few major pipelines, such as Transwestern, El Paso, and Natural Gas Pipeline Co. of America, inspires different reactions.
Peter C. Nelson was named president and CEO of California Water Service Co. Nelson also will be a director. He comes from Pacific Gas & Electric Co., where he was v.p.-division operations. He replaces the retiring Donald L. Houck.
Jack Lucido of ANR Pipeline Co. was elected to the American Gas Association's pipeline research committee, succeeding Gary Walker of Pacific Transmission Co.
The Electric Power Research Institute hired Karl G. Van Orsdol as senior manager, international relations.
The board of directors of the American Gas Association (A.G.A.) has adopted a resolution asking Congress to repeal the Public Utility Holding Company Act (PUHCA) and establishing PUHCA repeal as a high priority. A.G.A. says it will actively lobby Congress and the Clinton Administration for repeal. The association seeks to continue the tangible consumer benefits of deregulation and increased competition in the natural gas industry. The A.G.A.
Anyone on the East Coast can tell you a good snow story this winter. Like when I looked out my front window one morning and saw a four-wheel-drive utility vehicle get stuck in the middle of my street in downtown Washington. After spinning his wheels for a while, the driver got out and began walking toward Connecticut Avenue, a main DC thoroughfare.
The driver soon returned, carrying a fresh, steaming cafe latte from Starbucks in each gloved hand. He opened the door, climbed in, and gave one cup to his passenger.
At the November 1, 1995, meeting of the Natural Gas Roundtable in Washington, DC, a representative of the American Gas Association (A.G.A.) launched a blistering attack against the Energy Information Agency (EIA) for its forecasts of natural gas prices. In essence, A.G.A. complains that EIA's long-term forecasts have proven unreasonably high, softening enthusiam for gas-burning equipment (from turbines to gas water heaters).
As quoted by Gas Daily, A.G.A.'s representative said: "The bottom line is whose numbers are right.