Obtaining Boiler Fuel Gas to Reduce Air Pollution: The Policy of the Federal Power Commission

Abstract

Public utilities, particularly those operating steam-electric generating plants, contribute substantially to atmospheric pollution. The extent of their contributions may be affected in any given instance by the location of the plant, the type of generating unit, the particular fuel or fuels burned, the existence of pollution control equipment, and the scheduling of particular fuels in multi-fuel plants. One or more of these factors may fall within the purview of regulatory agencies of the federal, state, and local governments. This article deals with an aspect of utilities regulation of particular importance: the jurisdiction of the Federal Power Commission (FPC) over the use by steam-electric generating utilities of natural gas for boiler fuel, for the purpose of reducing air pollution produced by burning alternative fuels. In I938 the FPC was given responsibility for administering the federal part of a comprehensive federal-state regulatory scheme intended to assure that natural gas, a wasting asset, would be allocated to uses consistent with the public interest at minimum cost to the consumer. Through the years this broad directive has been narrowed to an inquiry into particular criteria which purport to embody the public interest. Attempts in recent years to add to this list of criteria the impact of a requested fuel use change on air pollution have met with less than complete success. The problem sought to be mitigated by these attempts-utilities' contributions to atmospheric pollution-is not likely to be solved in the immediate future other than by increased allocations of gas to replace coal and oil as boiler fuel. However, other solutions, particularly nuclear power generation, are visible somewhat further ahead. Consequently, until these alternative solutions are found or implemented, it is likely that increasing pressure will be brought to bear upon the Commission to certificate boiler fuel gas. Where certification can be shown to have a significant impact on air pollution, such pressure may ultimately result in a reversal of the Commission's present unreceptiveness to air pollution arguments.