What is the purpose of the Natural Gas Act of 1938?

The Natural Gas Act of 1938 had one primary purpose: to increase federal control over natural gas production and distribution and to ensure that the prices of natural gas were fair and reasonable. This Act was passed to replace existing state-level regulations, which had become increasingly ineffective. The Act allowed the Federal Power Commission (FPC) to mandate the rates and other terms of natural gas sales, as well as certify companies that operated interstate pipelines. Before the Act came into effect, natural gas production was dominated by state and local governments. Many of these entities lacked the financial and administrative resources to effectively manage production and distribution. This resulted in inconsistent supply and prices that had little to no regard for the needs of consumers. Furthermore, there was little to no protection for interstate pipelines. The Natural Gas Act of 1938 changed all of this. It created a unified set of federal regulations to ensure the fair and reasonable pricing of natural gas. Additionally, the FPC was given the power to ensure interstate pipelines and related infrastructure were in compliance. The Natural Gas Act of 1938 has ensured that natural gas remains an affordable and reliable energy source for South Dakota, and it continues to fulfil its original purpose of protecting consumers.

Related FAQs

What are the legal requirements for utility companies in regards to disclosure?
What is the purpose of the Federal Energy Regulatory Commission?
What is utilities law?
What rights do public utility customers have in regards to service reliability?
What are the rights of public utility customers in relation to customer service?
What is the role of the Air Traffic Control System Standards Board (ATCSB) in utilities law?
What is the Energy Policy Act of 2005?
What is the role of the Federal Transit Administration (FTA) in utilities law?
What is the purpose of the Federal Energy Management Program (FEMP)?
What is a rate structure in utilities law?

What is the purpose of the Natural Gas Act of 1938?

Related FAQs

Related Blog Posts