Natural Gas Producers Point to High Costs of Proposed Renewables

NATURAL GAS SUPPLY ASSOCIATION

805 15th Street N.W., Suite 510
Washington, D.C. 20005

FOR IMMEDIATE RELEASE
DATE: May 8, 1997

CONTACT: Charlotte LeGates

PHONE:202/326-9316

FAX: 202/326-9334

Natural Gas Producers Point to High Costs of Proposed Renewables Mandates

Washington, DC -- Mandated use of renewable energy, as proposed in several bills pending in Congress, could raise electricity prices 12 percent or more above projections, the Natural Gas Supply Association told the Senate Energy and Natural Resources Committee in documents submitted today. Renewables mandates could thus easily wipe out the savings hoped for through electricity restructuring.

NGSA's strong opposition to mandated use of renewable energy for electricity generation springs not just from the costs but also from projections that mandated use of renewables would have a strong negative effect on the growth of natural gas-fired electricity. The documents point out that a renewables mandate is likely to be filled largely by burning biomass, such as wood chips and material grown on "fiber farms"; this type of generation can be more detrimental to the environment than use of coal while blocking opportunities for increased use of cleaner-burning gas in the power generation sector.

The Association's strong stand against mandated use of renewables responds to the growing number of bills now in Congress that would require use of non-hydropower renewables to generate up to 20 percent of electricity.

The documents, which are available from the NGSA receptionist (202/326-9300) also delineate NGSA's overall position on electricity restructuring, including support for: 1) access to all consumers by all electricity suppliers, 2) a uniform, federally-imposed "date certain" by which this access must be in place, 3) open access to the transmission and distribution grids, and 4) protection for contracts now in place while also repealing, prospectively, Section 210 of the Public Utilities Regulatory Policies Act (PURPA) and the Public Utilities Holding Companies Act (PUHCA).

NGSA represents producers and marketers of domestic natural gas.

This page was last updated August 31, 1997.