House Panel Backs Lifting Natural Gas Price Controls

The House Energy and Commerce Committee today approved legislation to lift the remaining price controls on natural gas, which accounts for one-quarter of the nation’s energy supply.

Before a voice vote to send the bill to the House floor, several panel members said the decontrol would help ease the nation’s growing dependence on imported energy without raising consumers’ heating bills.

“I think gas prices are going to fall” in the short run if the legislation is enacted, said Rep. W. J. (Billy) Tauzin (D-La.).

Prospects for full congressional approval appeared better than at any other time in this decade. Worries about price rises had blocked attempts to end the controls.

Industry officials and analysts say the legislation could result in slight declines in consumer prices, adding that any immediate effect probably will be small because most of the controlled gas already sells at prices below the federally set ceilings.

Supported by Bush

The House measure is strongly supported by all segments of the natural gas industry and by the Bush Administration, which views price decontrol as a way of promoting natural gas as a cleaner-burning alternative to oil. President Bush has expressed concern at the country’s growing reliance on imported oil.

Some consumer groups, however, say ending limits on how much producers may charge on about one-third of the nation’s gas supply will help the industry without tackling problems of greater concern to the 48 million households that use gas.