In a 24,000-word decision last week, the Federal Power Commission made its most important natural-gas ruling in ten years. It changed the method for calculating the value of any gas a pipeline company itself produces. In a case brought by Panhandle Eastern Pipe Line Co., biggest in the U.S., FPC ruled that rates will no longer be based on how much money the pipeline company spent trying to find gas. Instead, rates will now be based on the price natural gas is bringing on the market.
What FPC's 4-1 decision means is that permanent gas rates will go up...
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