Discussion of two important aspects of allocation policy. The first is the overall distribution of energy supplies among different energy products and among four major sectors of the economy: residential, commercial, industrial, and transportation. Several hypothetical energy balances for California for the year 1974 are developed, with overall projections of supply and use to illustrate how a given supply shortage can translate into shortages to consumers. Also illustrated is the effect that conservation or curtailment of one type of fuel can have on alleviating shortages in other fuels. The second aspect of interest is the allocation of supplies among individual consumers within a sector. The focus is on the possibility of rationing or curtailment of electricity to residential customers. (Statement before the Subcommittee on Energy Policy, Committee on Planning and Land Use, California State Assembly, Sacramento, December 11, 1973.) 22 pp.