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Downstream Gas Pricing in an Era of Upstream Deregulation

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  • Hollas, Daniel R

Abstract

State public service commission regulation of gas utility pricing is examined during the period of wellhead price deregulation. A model which incorporates asymmetry in price setting during a period of changing input costs is estimated. Statistical analyses suggest public service commission regulation slowed the increase in gas utility prices during periods of rising costs. Gas utility pricing was not monitored as closely when purchased gas prices fell, thereby altering the rate structure in favor of industrial customers. Federal Energy Regulatory Commission policies designed to promote competition by restructuring the transmission sector of the gas industry after 1985 appear to have suppressed retail prices in industrial markets. Copyright 1994 by Kluwer Academic Publishers

Suggested Citation

  • Hollas, Daniel R, 1994. "Downstream Gas Pricing in an Era of Upstream Deregulation," Journal of Regulatory Economics, Springer, vol. 6(3), pages 227-245, September.
  • Handle: RePEc:kap:regeco:v:6:y:1994:i:3:p:227-45
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    Cited by:

    1. Cremer, Helmuth & Laffont, Jean-Jacques, 2002. "Competition in gas markets," European Economic Review, Elsevier, vol. 46(4-5), pages 928-935, May.
    2. Fernando Navajas, 1998. "Effects of Passthrough Pricing Rules on Gas Purchase Decisions From Different Bassins," IIE, Working Papers 009, IIE, Universidad Nacional de La Plata.
    3. Vladimir Hlasny, 2008. "The impact of restructuring and deregulation on gas rates," Journal of Regulatory Economics, Springer, vol. 34(1), pages 27-52, August.
    4. Matthew Oliver & Charles Mason & David Finnoff, 2014. "Pipeline congestion and basis differentials," Journal of Regulatory Economics, Springer, vol. 46(3), pages 261-291, December.
    5. Oliver, Matthew E., 2019. "Pricing flexibility under rate-of-return regulation: Effects on network infrastructure investment," Economic Modelling, Elsevier, vol. 78(C), pages 150-161.

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