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Two Views of Pipeline Risk

Chapter
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Part of the Topics in Regulatory Economics and Policy Series book series (TREP, volume 14)

Abstract

In Chapter 6, we sketched the recent history of the interstate gas pipeline industry. That history is developed more fully in Appendix B. We doubt that anyone reading that history would disagree with the conclusion that the natural gas industry, and particularly its pipeline segment, has experienced a much higher degree of risk since the Natural Gas Policy Act passed in 1978. Legal and regulatory standards and contractual and business relationships have been in flux. Pipelines have had losses of billions of dollars from take-or-pay contract litigation and settlements. Competition for what once were protected markets not only is growing, but is being actively encouraged by the regulatory agency in control, yet regulatory jurisdiction over rates remains in force.

Keywords

Economic Principle Capital Asset Price Model Regulatory Risk Spot Market Discount Cash Flow 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 1993

Authors and Affiliations

  1. 1.The Brattle GroupUSA
  2. 2.Sloan School of ManagementMassachusetts Institute of Technology and The Brattle GroupUSA

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