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

The Natural Gas Act of 1978 is an important piece of legislation that is designed to protect consumers from market manipulation and to ensure access to natural gas. The purpose of the act is to provide a regulatory framework for the natural gas industry in the United States. Specifically, the act regulates how natural gas is priced, transported, and supplied to consumers. It also establishes a system of rate regulation to protect consumers from sudden price increases. This system also requires that companies obtain a Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission before they can provide natural gas services. The Act also seeks to promote competition among natural gas suppliers. It does this by requiring natural gas companies to provide open access to their pipelines, allowing other suppliers to use those pipelines for the transportation of their natural gas. By making the pipelines open to all natural gas suppliers, the Act helps to encourage competition, which can help bring down prices for consumers. Finally, the Act helps to protect consumers from market manipulation. For example, the Act requires natural gas suppliers to purchase a certain volume of gas every month, which ensures that the Supply of natural gas meets the demand. This helps to keep prices stable and discourages market manipulation. Overall, the Natural Gas Act of 1978 is an important piece of legislation that has helped to protect consumers and encourage competition in the natural gas market. It is designed to ensure that consumers can access a reliable supply of natural gas while also ensuring that they are protected from market manipulation and sudden price increases.

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

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