§3206 — Title 15 Commerce and Trade | U.S. Code

Summary

The Secretary must study and report to Congress on gas utility rate design within 18 months after November 9, 1978. The Secretary must work with the Commission and give state regulators, gas companies, and gas users a chance to comment. The study must look at how things like incremental and marginal pricing, taxes on end users, wellhead pricing, demand versus commodity rate designs, declining block rates, interruptible service, seasonal price differences, and end-user rate schedules affect load factors, rates for residential/commercial/industrial users, total costs to consumers, gas demand and use, company end-use patterns, and competition from other fuels. After the study, the Secretary must make proposals to improve rate design and encourage conservation, including the Commission’s comments. The proposals and any legislative suggestions must go to both Houses of Congress within 6 months after the study is sent. Each proposal must include an analysis of projected energy savings, likely changes in the cost of gas to consumers, and effects on other parts of the law. The public must be allowed to take part in the study and in making the proposals.

Title 15, §3206

Commerce and Trade — Source: USLM XML via OLRC

(a)(1)The Secretary, in consultation with the Commission and, after affording an opportunity for consultation and comment by representatives of the State regulatory commissions, gas utilities, and gas consumers, shall study and report to Congress on gas utility rate design within 18 months after November 9, 1978. Such study shall address the effect (both separately and in combination) of the following factors upon the items listed in paragraph (2): incremental pricing; marginal cost pricing; end user gas consumption taxes; wellhead natural gas pricing policies; demand-commodity rate design; declining block rates; interruptible service; seasonal rate differentials; and end user rate schedules.

(2)The items referred to in paragraph (1) are as follows:

(A)natural gas pipeline and local distribution company load factors;

(B)rates to each class of user, including residential, commercial, and industrial users;

(C)the change in total costs resulting from gas utility designs (including capital and operating costs) to gas consumers or classes thereof;

(D)demand for, and consumption of, natural gas;

(E)end use profiles of natural gas pipelines and local distribution companies; and

(F)competition with alternative fuels.

(b)Based upon the study prepared pursuant to subsection (a), the Secretary shall develop proposals to improve gas utility rate design and to encourage conservation of natural gas. Such proposals shall include any comments and recommendations of the Commission.

(c)The proposals prepared under subsection (b), shall be transmitted, together with any legislative recommendations, to each House of Congress not later than 6 months after the date of submission of the study under subsection (a). Such proposals shall be accompanied by an analyses 11 So in original. Probably should be “analysis”. of—

(1)the projected savings (if any) in consumption of natural gas, and other energy resources,

(2)changes (if any) in the cost of natural gas to consumers, which are likely to result from the implementation nationally of each of such proposals, and

(3)the effects of the proposals on other provisions of this Act on gas utility rate structures.

(d)The Secretary shall provide for public participation in the conduct of the study under subsection (a), and the preparation of proposals under subsection (b).

Notes & Related Subsidiaries

Editorial Notes

References in Text

This Act, referred to in subsec. (c)(3), is Pub. L. 95–617, Nov. 9, 1978, 92 Stat. 3117, known as the Public Utility Regulatory Policies Act of 1978. For complete classification of this Act to the Code, see

Short Title

note set out under section 2601 of Title 16, Conservation, and Tables.

Statutory Notes and Related Subsidiaries

Definitions The definitions of Secretary and Commission in section 2602 of Title 16, Conservation, apply to this section.

§3206 Gas utility rate design proposals