WATCHING WASHINGTON A CARROT FOR PIPELINES

With Patrick Crow The Federal Energy Regulatory Commission has a pretty full schedule these days, but Commissioner Branko Terzik wants to add a new wrinkle. Terzik has been working for several months on a proposal that would allow FERC to offer gas pipelines a system of incentive rate regulation. He plans to circulate a draft plan among the other four FERC commissioners within 1-2 weeks. Terzik argues government price regulation can never be as effective as competition, and incentive regulation

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