What is the purpose of the Natural Gas Act of 1978?

The Natural Gas Act of 1978 has several purposes. First, it seeks to ensure that natural gas prices are “just and reasonable” and that safe and adequate service is provided to all customers. It also establishes a framework for the regulation of interstate natural gas companies, which are companies that transport natural gas across state lines. The Act places qualifications on interstate natural gas companies, requiring them to be licensed by the Federal Energy Regulatory Commission (FERC). This licensing process ensures that interstate natural gas companies adhere to certain safety and operational standards. The Act also requires these companies to provide all customers with equal access to their services. The Natural Gas Act of 1978 also regulates the rates charged for natural gas, which must be “just and reasonable.” The FERC reviews the cost of production and transportation, as well as other factors, in order to determine the maximum rate that the natural gas company can charge. Finally, the Act seeks to promote competition in the natural gas industry by encouraging new interstate pipelines and by providing incentives for the development of new natural gas resources. By ensuring that prices are reasonable and that all customers have access to natural gas services, the Act plays an important role in helping to keep energy costs low in California.

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What is the purpose of the Natural Gas Act of 1978?

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