The Des Moines Register from Des Moines, Iowa on August 29, 1975 · Page 9
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August 29, 1975

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The Des Moines Register from Des Moines, Iowa · Page 9

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Des Moines, Iowa
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Friday, August 29, 1975
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GAS PLANS SUPPORTED BY GOVERNORS Frl., Aug. 29, 197S • DES MOINES REGISTER / 9 ENERGY Continued from Page One counted for 15 per cent. Agriculture alone accounts (or 26 per cent of the state's natural gas consumption. Iowa also depends heavily on fertilizer which is made from natural gas and shipped into the state. President Ford asked the governors to support legislation allowing emergency interstate sales of gas without price limits. <^ (The. price of natural gas bound for interstate shipment long his been controlled by the FPC under a mandate from Congress and the courts. The agencjf in recent years has opposed-these controlled prices, saying they have been set at artificially low levels, discouraging exploration and production 1 . Supplies/Retained Also, the FPC contends that significant supplies of gas are being retained in the producing states — mainly Louisiana and Texas —, because there are no controls on intrastate prices. Thus, say FPC officials, an abundant supply in those states is causing industries which use natural gas to "relocate there. The situation is resulting in loss of jobs 'and economic troubles in other''states, they say. G o v. James Edwards of South Carolina, which is expected to be one of the states most severely affected, said he expects the shortage this winter could cost $336 million in lost personal income, and may boost unemployment in a 10- county area to as high as 20 per cent. The Ford administration is pushing Congress to remove controls from natural gas prices, and the FPC has announced it plans to remove price restraints during a 2-year trial period from some interstate gas which would go directly to fuel-short industries. Support 2 Plans Interstate gas currently has a ceiling price of 52 cents per thousand cubic feet. Intrastate gas which is sold and consumed in the state where it's produced, sells for much more. The governors met before the session with Mr. Ford Thursday and agreed overwhelmingly to support a plan, under which iiv( trastate gas would be a!16w«d to move throughout the country with no price controls during a 180-day period each ywinter. Also, they backed a /proposal under which the price of new natural gas supplies would be deregulated over a 5-year period. Ray backed both plans, an aide said. FEA officials said that despite the shortages, millions of cubic,feet of natural gas are being consumed each year by small ornamental lamps in suburban subdivisions and by backyard barbecue ovens. They have asked utility companies to stop promoting sale of such devices. Illinois House loses $30,000 equipment SPRINGFIELD, ILL. (AP) More than $30,000 worth of office furnishings and equipment belonging to the Illinois House of Representatives has vanished without a trace, Auditor General Robert G. Cronson said Thursday. Among the missing items are an 18-foot-long conference table, thousands of dollars worth of electric typewriters, calculators and dictating equipment, a refrigerator and carpeting. on natural gas prices modified ECONOMY Continued from Page One est advance in seven months. The Dow Jones average of 30 New York Exchange issues vaulted 22.45 to 829.47, the biggest leap since the 26.05 increase Jan. 27. (Details on Market Page.) • The White House announced that 'President Ford still plans to veto the bill extending price controls on domestic oil despite a last- minute plea to sign it by Senate Majority Leader Mike Mansfield. Mansfield and other congressional leaders have been trying to reach a last- minute compromise on the, impending veto. Mansfield has scheduled a meeting with Mr. Ford at the White House for today. He will try to convince the President that Congress will pass a compromise within 30 to 45 days if the price control extension becomes law, a Mansfield aide said. • The Commerce Department announced that most of the nation's home appliance manufacturers have agreed to participate in a voluntary program aimed at trimming energy usage and helping shoppers select the most efficient appliances. The program, if successful, means consumers probably will pay more for appliances, but the energy savings will make up the extra cost, officials said. Specific proposals for cut* ting energy use include installation of more insulation in appliances that cool or heat, thermostats that can be set lower on hot water heaters and built-in "vacation switches" to allow continuously operating appliances to be easily turned off when not in use for long periods. If the goals are met, an average family of four could save $22.50 of $250 a year currently spent to run an NO BUGS M'LADY, NEEDED HERE, TOO! No Bugs M'Lady Shelf and Drawer, Paper is scientifically treated,16 kill ants, cockroaches and silverfish. Use it in so many places: Shelves, drawers and cabinets • Broom closets and storage areas* Under sinks* Wrapped around cottons, linens and valuable documents. Follow directions on package. No BUGS M'U\DY 7S-3 Gordon's is the vodka with the Patent on smoothness. And to a vodka drinker, happiness is smoothness. So make it Gordon's. And make it happy. electric hot-water heater, officials said. By determining that sales from producers to final con* sumers at the wellhead are outside its jurisdiction, the FPC will allow these sales at any market price regardless of the ceiling prices it sets for transactions within its jurisdiction. Springer's dissent viewed the action as only a maneuver to circumvent the legal require ment to regulate pricing. It may foreshadow a reaction in Congress or in the courts that may quickly test the FPC's new interpretation of the law. Stimulus Seen In urging deregulation, both Nassikas and President Ford contend that higher gas prices to producers are needed to stimulate increased exploration and development of new natur al gas resources. In another ruling Thursday, the FPC authorized small producers of natural gas to sell at rates 30 per cent higher than those permitted large producers under FPC-imposed ceiling prices. Previously, all natural gas producers were subject to the same rate structure, and small producers could seek higher rates if they could justify them on a case-by-case basis. 2 Seats Vacant With the five-seat commission temporarily down to three commissioners, the vote was 2 to 1 for assigning all small producers a higher ceiling price. Chairman Nassikas dissented from the decision by commis- sione rs Smith. Springer and Don The majority decided that small producers — those with annual sales of 10 billion cubic feet or less Higher rate - are entitled to a of return on investment than larger producers because their financial risks arid difficulties are greater. The FPC decision says small producers are entitled to a 20 per cent rate of return, compared with the 15 per cent rate of return used as the basis for nationwide rates applied earlier. Higher Charge To achieve the higher return, the small producers are authorized to charge 30 per cent more for natural gas sold to interstate pipelines. Nassikas, however, said the assignment of a 20 per cent rate of return to small producers has not been backed up by substantial evidence and would not stand up in court. The majority, in its decision, rejected the argument that .the higher rate for small producers would discriminate against large producers, citing a Supreme Court ruling that it is proper to establish different rates for different classes of producers. The new policy will take effect immediately. Innocent plea to kidnaping SAN DIEGO, CALIF. (AP) Alberto Marron-Ybarra, 19, pleaded innocent Thursday to kidnaping a 7-year-old girl and a variety of other offenses. "I am not guilty of anything," the Tijuana, Mexico, youth said through a Spanish- speaking interprctor. His trial was set for Oct. 22. Marron-Ybarra, believed to be an illegal alien, was indicted Wednesday by the San Diego County grand jury on charges I of kidnaping the girl, Elaine Taylor, from her suburban) home Aug. 8. $122,000 £rani OK'd for Oskeloosa Tht ft«gut«n lew* N*w* Sirvlc* OSKALOOSA, IA. - The U.S. Department of Housing and Ur- ban Development (HUD) has approved a grant of $122,000 for the city of Oskaloosa for storm sewer repair, housing renovation and removal of abandoned houses. EUgant Marble. It's an elegant natural product that adds a noble decorative touch wherever you use it. Fireplace hearths, table tops, desks, credenzas, coffee tables, vanities, and office furniture are just a few possibilities. Rowat Cut Stone Company has marble available for whatever you need. Choose from both imported and domestic varieties in many colors. Rowat will custom cut marble to the size you need — and give you pointers on how to use it and care for it. Rowat also specializes in reworking and repolishing marble. 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