Safeguarding Investments in Natural Gas Infrastructure: Lessons Learned from Regulatory Regimes in the United States and the European Union
On July 19, 2012, TA Junior Fellow Tim Boersma published a policy paper contrasting natural gas infrastructure and regulatory systems in the United States and Europe. This paper aims to explore whether there are more lessons to be learned from the U.S. regulatory system, in particular when looking at how to secure sufficient long-term investments in gas transmission infrastructure. It describes the relation between legislature and regulatory authorities and their mandates in the EU, the individual member states and in the United States. After examining the criteria used by regulatory authorities to determine transport tariffs, this study focuses on the role of both private and public funds used in gas infrastructure and what lessons can be derived from differing existing practices.