On Fri, 27 Jun 2003 13:58:34 +0000 (UTC)
(Jonathan Kamens) wrote:
snip
I think that regulation enters into the picture when the gas crosses
state lines.

Why do you say that? Most regulation of utility pricing is
at the state level, not the Federal level. State regulatory
authorities don't care whether the gas/electricity cross
state lines.

Google on FERC (Federal Energy Regulatory Commission) for articles like
this:


"Recent analyses of the natural gas market, 1 including those of the
Department of Energy (DOE), the Federal Energy Regulatory Commission
(FERC), 2 and the State of Louisiana, 3 conclude that there is a serious
problem of regional gas supply imbalance in which most intrastate
pipelines are at a disadvantage in competing with most interstate
pipelines for new gas supplies. In addition to this supply imbalance,
there is a related problem of price disparity. Most intrastate pipelines
must pay prices for old gas supplies substantially higher than the
prices interstate pipelines must pay for such supplies. Analysts predict
that the twin problems of supply imbalance and price disparity between
the interstate and intrastate markets will grow worse over the next five
to ten years unless Congress passes legislation to avoid this result.
Louisiana is particularly disadvantaged by the present situation because
of its heavy reliance on intrastate suppliers of natural gas."

http://www.dnr.state.la.us/SEC/EXECD.../legal/001.htm