How Regulators Should Use Natural Gas Price Forecasts

Natural gas prices are critical to a range of regulatory decisions covering both electric and gas utilities. Natural gas prices are often a crucial variable in electric generation capacity planning and in the benefit–cost relationship for energy-efficiency programs. High natural gas prices can make coal generation the most economical new source, while low prices can make natural gas generation the most economical.Forecasting is like driving a car blindfolded while following directions given by someone who is looking out of the back window.– Anonymous