ABSTRACT
The current area price regulation of the field price of natural gas by the Federal Power Commission (FPC) has been subjected to considerable criticism over the past few years. The purpose of this paper is to evaluate the prospective contribution to the public interest of a continuation of this FPC regula tion of the late 1960s and of three alternative policies. The alternatives chosen for review are (1) a re form of the current price-fixing method, (2) a basic restructuring of price regulation away from a cost base, and (3) virtual price deregulation with suitable public interest safeguards. Numerous alternatives might have been chosen, but most, with some nuances of difference, could be fitted into some combi nation of those considered. The focus throughout is on the general relationships involved; this paper does not deal with specific application of regulatory policy through FPC procedure.
