Before the Department of Energy Economic Regulatory Administration: Paso Eastern Company

by Barry Bosworth on May 8, 1978
by Barry Bosworth, Vartkes L. Broussalian, Thomas D. Hopkins and Roy A. Nierenberg

The Council on Wage and Price Stability (Council) submits these written comments in response to a Notice of Oral Argument issued by the Economic Regulatory Administration (ERA) on March 14, 1978, and the Notice of Time for Filing Written Comments, dated April 28, 1978.   The Council’s responses to some of the specific questions raised in the Notice are contained in section III of this submission. Since many of the specific questions are interrelated, we have included two introductory sections on pricing of LNG through modified marginal cost pricing and on evaluating price escalation clauses of LNG contracts in order to provide a context within which ourr responses may be properly understood. This context is particularly important since the specific issues raised by ERA in our view cannot be addressed adequately in piecemeal manner.

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