A bill to amend the Natural Gas Policy Act of 1978 to define abuse for purposes of determining whether pass-throughs of amounts paid to interstate pipelines for natural gas should be denied, and to deny pass-throughs to interstate pipelines for actions which are imprudent.

Amends the Natural Gas Policy Act of 1978 to prohibit cost passthroughs by an interstate pipeline for imprudent actions on the part of the pipeline. Defines "abuse" and "imprudence" for the purpose of determining whether or not cost passthroughs should be denied. Defines "abuse" to include: (1) take-or-pay clauses; and (2) indefinite price escalator clauses which meet specified criteria. Defines "imprudence" as any action which: (1) is not in the public interest; or (2) materially prevents a pipeline from responding to changes in customer demands or other relevant market factors.