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Firm/interruptible gas pricing patterns in a regulated environment

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Conclusion

This study provides empirical tests for the effects of rate base regulation, curtailment priorities, fuel clauses, and elected commissioners on firm/interruptible gas pricing patterns. These regulations do alter observed pricing patterns with curtailment priorities, fuel clauses, and elected commissioners all producing net social gains. Rate of return regulation imposes social costs resulting in a net decrease in social welfare. Ignoring the political influences upon regulators, regulation generally encourages consumption at the peak relative to the off-peak. Nonetheless, overall social welfare is improved if all four types of regulatory characteristics are present, since most rates are reduced from their monopoly levels.

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Authors and Affiliations

  1. University of Texas at San Antonio, San Antonio, USA

    Daniel R. Hollas

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  1. Daniel R. Hollas
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Hollas, D.R. Firm/interruptible gas pricing patterns in a regulated environment. J Regul Econ 1, 47–67 (1989). https://doi.org/10.1007/BF00150297

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