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<br /> <br />Black & Veatch, as a member of the General Contractor team, is responsible <br />for carrying out this analysis and for assessing the impact of future regu- <br />lation on energy production and price. <br />The survey of energy regulation documented in this report has been <br />used in formulating the regional projections. The following specific impacts <br />of the current and prospective energy regulatory environment are included <br />in the regional energy price and production projections. <br />. Crude petroleum price projections assumed the phased decontrol <br />of domestic crude oil prices as mandated by the Energy Policy <br />and Conservation Act (1975). <br />. Natural gas price projections assumed the deregulation of natural <br />gas prices as mandated by the Natural Gas Policy Act (1978). <br />. Coal price projections include an assessment of the impact of <br />Federal laws concerning mine safety and reclamation. <br />. Electricity price projections reflect an assessment of the impact <br />of the Powerplant and Industrial Fuel Use Act of 1978 on installed <br />capacity and fuel use mix in the region. <br />. Projections of associated (casinghead) natural gas production <br />assumed the continuing effect of allowables on production in the <br />Permian Basin area of Texas. <br />I n addition, energy regulatory impacts are recognized and accounted <br />for in making regional projections of energy production related income as <br />well as other energy assessments. Some of the other specific regulatory <br />considerations are as follows. <br />. Private royalty payment income was adjusted to account for the <br />Crude Oil Windfall Profit Tax Act of 1980. <br />. State severance tax allowance was accounted for under the wind- <br />fall profit tax adjustment. <br />. Utility buy-back provisions of the Public Utility Regulatory <br />Policies Act of 1978 were allowed for in advanced technology <br />economic evaluations. <br />. Federal and state investment tax incentives on new technologies <br />were considered in the advanced technology assessment. <br /> <br />1-2 <br />