Abstract
Natural gas and electric utilities have long competed against each other for market share. Some aspects of their marketing battle have remained remarkably constant: those of this generation learned that natural gas was the fuel with a thousand-and-one heats, but admired our neighbors with the certified all-electric Gold Medal home; today, the virtues of natural gas, the cleanest burning fossil fuel, are extolled, while the competition assures us that one can still live better electrically. But competition between natural gas and electric utilities has taken a new turn since the introduction of least-cost planning. On the grounds of societal efficiency, regulators are forcing many utilities - particularly all-electric companies - to promote their competitors' products. This paper examines whether such end-use fuel-switching programs truly result in societal-efficiency gains, or give natural gas utilities an unfair competitive advantage.
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