Natural Gas Utilization Act

Natural Gas Utilization Act - Amends the Powerplant and Industrial Fuel Use Act of 1978 to repeal certain prohibitions on the use of natural gas as a primary energy source in existing electric powerplants and major fuel-burning installations.

Repeals the system compliance option provisions of the Act, which provides that existing powerplants owned or operated by a utility shall be considered in compliance with prohibitions relating to natural gas usage if the utility has in effect an approved system compliance plan.

Permits local distribution companies to provide natural gas service to residential customers for use in outdoor lighting fixtures installed, and receiving natural gas, before the enactment of the Powerplant and Industrial Fuel Use Act of 1978.

Requires each local distribution company, in accordance with rules established by the Secretary of Energy, to: (1) periodically inform its customers of the amount of natural gas consumed by outdoor lighting; and (2) report such information method to the Secretary.

Permits the Secretary to grant a permanent exemption from the prohibitions on the use of natural gas in a gas-coal mixture in a new powerplant or installation if: (1) emissions would be reduced; and (2) disregarding any variances, the proportion of natural gas in a mixture complies with applicable environmental requirements.

Repeals the Federal requirement of incremental pricing under the Natural Gas Policy Act of 1978.