Dragging Your Heels or Charging--First Time a Public Utility has had a Real Choice

Reed Penning

Western public utilities serving specific territories have historically had very little individual control over the source or price of the natural gas they have served their residential, commercial, and industrial customers. These utilities (local distribution companies or LDCs) have formed groups to work with and against the major interstate pipelines for their best interests and those of their customers. This work has included lobbying for higher prices to producers to encourage increased exploration and development.

With the potential for open access, some LDCs want to stay with the status quo arrangement of "Big Brother," others want to increase control over their own energy destinies. The rewards and risks of each approach will be evaluated in light of the type customer being served. Why "firm" and "interruptible" are good and bad terms will be explained. Also presented will be a discussion of LDCs acquiring reserves and participating in drilling and gathering systems. Future uses of natural gas will be detailed.

AAPG Search and Discovery Article #91040©1987 AAPG Rocky Mountain Section Meeting, Boise, Idaho, September 13-16, 1987.