On Fri, 27 Jun 2003 04:30:18 -0500, someone wrote:


"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."

Read it, carefully. Looks like this:

1) There is an price disparity.

2) There is *not* a regulation to stop this, the author is saying that
a regulation is needed to prevent this.

3) It is not clear from the above excerpt alone, that the *reason* for
the disparity is a present reg, rather than old contracts.

Sure, there is an FERC, and it has many roles, and some of its roles
have changed over the years, particularly as to now reduced regulation
of natural gas. Its not my field. Maybe you have info, but tell us
more. The above quote only tells us there is a disparity in price and
that some pipelines are at a competitive disadvantage. But why?

-v.