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EMD-80-96 1 (1980-09-04)

handle is hein.gao/gaobabazf0001 and id is 1 raw text is: 


BY THE COMPTROLLER GENERAL                                     41<W^



Report To The Congress

OF THE UNITED STATES





Natural Gas Incremental Pricing:

A Complex Program With Uncertain

Results And Impacts



The Natural Gas Policy Act calls for industrial
customers of interstate natural gas pipelines
to pay a surcharge on their fuel purchases. The
legislation provides an incentive for the indus-
trial users--who want to keep their costs low--
to pressure their suppliers to obtain natural gas
at the lowest possible cost. The ultimate bene-
ficiaries of the lower prices will be residential
and small commercial users.

The Federal Energy Regulatory Commission
issued regulations for the incremental pricing
program as required. However, GAO believes
that there may be problems in carrying out
the program the Commission has designed.
The Commission will lack the basic data it
needs to determine whether its regulations will
have the intended impact on prices. The Com-
mission also has overlooked the need to assess
the administrative costs of the program and to
plan procedures for evaluating the benefits
and drawbacks of the program.





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                                                                  EMD-80-96
   14cou  t                                                 SEPTEMBER 4, 1980

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