Conservation always reduces cost: energy managers can rely on energy management-even in turbulent times. .(Editorial)

Recent news reports citing high natural gas prices, nuclear plant outages, and spot shortages due to transmission limits all point to the possibility of higher than expected electricity prices this summer. That natural gas prices will be high is a given, but readers shouldn't forget that persistent $5-$7 per MMBtu pricing will have a ripple effect on other energy costs.

A report published in The Canadian Press quotes North American officials as saying that consumers should expect at least three more years of heavy price volatility in natural gas before new sources begin to come on stream.

Ken Vollman, chairman of Canada's National Energy Board, told a continental energy market conference in the Rocky Mountain resort town of Banff, AB, "We're saying, 'We can't see any relief for three years -- these new sources of supply are after that."'

In case you think this is a problem for our neighbors to the north, U.S. Federal Energy Regulatory Commission Chairman Patrick Wood seemed to agree. However, it could be every nation for itself when it comes to Canada's gas supplies. Vollman said it would be "unlikely and unfortunate" if Canada re-introduced regulation to limit exports of gas to the United States and to maintain certain reserve levels.

Gas has increasingly concerned U.S. policymakers because it was apparent for some time that storage levels would near record lows by the end of last winter. Cold temperatures drove some of the draw down in supply but the increasing use of gas for power generation may have made a critical difference. And with the summer peak season nearly upon us, the use of natural gas for power generation won't make it any easier for suppliers to replenish natural gas stocks. High prices also reduce their incentive to do so.

The situation could be made worse if the nuclear industry continues to be haunted by ...