natural gas what future do you see for natural gas consumption? what do you make of judge cudahy’s...

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?

GENERATION TRANSMISSION DISTRIBUTION

Power Plant

Transmission lines

LDCEnd Users

Distribution lines

ELECTRICITY:

• History

• Terminology

U.S.: Utility Generation by Primary Energy Source, 1998

NUCLEAR31%

COAL22%

OIL6%

GAS16%

OTHER THERMAL0%

CONV. HYDRO11%

PUMP STOR. HYDRO1%

GEOTHERMAL0%

WIND12%

BIOMASS1%

EU ELECTRIC GENERATION MIX

Utility Delivered Fuel Prices for Coal, Petroleum, and Gas, 1988-1998 (1998 Dollars)

GENERATION TRANSMISSION DISTRIBUTION

Transmission lines

LDCEnd Users

Distribution lines

IOU-owned plant

Federally-owned plant

QF/IPP-owned plant

Municipally or REA-owned plant

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?

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)

Interconnections of the North American Electric Reliability Council in the Contiguous United States

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

North American Electric Reliability Council (NERC) Regions for the Contiguous United States and Alaska

U.S. Independent System Operators in Operation, 1999

Estimated Average Revenue per Kilowatthour for All Sectors at Electric Utilities by State, 1999