Court ruling on emissions will bolster US gas demand: Consultants

Toronto (Platts)--1May2007

The US Supreme Court's recent decision mandating that the Environmental
Protection Agency regulate carbon emissions will substantially increase US
natural gas demand, energy consultants said Tuesday at the Canadian Enerdata
GasFair PowerFair conference in Toronto.

The April 2 ruling will have a "stratospheric" impact on gas use as
federal carbon regulations are developed and enforced, said Dale Nesbitt,
president of Altos Management Partners. "As coal leaves the system, there's
nothing left but natural gas" as a baseload fuel, he said.

Benjamin Schlesinger, president of Maryland-based consultancy Benjamin
Schlesinger and Associates, agreed, saying the court's decision "is a very big
deal" in that "carbon policies are going to intensify gas demand. Nothing can
be put into service as quickly as a gas-fired power plant."

Schlesinger also said the ruling would trigger the development of energy
sources with lower emissions, including nuclear power, that had fallen out of
favor in recent years.

--Melanie Tatum, Melanie_tatum@platts.com