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Title: Fueling opportunities

Abstract

The newly restructured natural gas industry is providing greater opportunities for independent energy producers searching to match fuel supply contracts with project needs. Order No. 636's unbundling of the services offered by pipelines completed the deregulation of the gas industry started by the Natural Gas Policy Act of 1978, which began a phased deregulation of wellhead natural gas prices. Traditionally, the pipelines aggregated gas from numerous producers, transported it, stored it if necessary and sold it to a local distribution company or major customer, such as an electric generator. Order No. 636 separates pipeline transportation, sales and storage services and provides open access to pipelines. Customers are now subject to balancing requirements, scheduling penalties and operational flow orders, but there are new flexibilities in purchase and receipt of gas. The capacity release provisions allow those with excess transportation capacity entitlements to market that capacity. The order also favors the straight fixed-variable rate design which increases demand charges by including all fixed charges, including a pipeline's return and taxes, in the demand component of the rate. Under the previous modified fixed-variable methodology, a pipeline's fixed-cost recovery and earnings depended at least in part on maintaining throughput. Critics say the change willmore » reduce the pipelines' incentive to operate efficiently and to market gas aggressively to power generators.« less

Authors:
Publication Date:
OSTI Identifier:
7203834
Resource Type:
Journal Article
Journal Name:
Independent Energy; (United States)
Additional Journal Information:
Journal Volume: 24:2; Journal ID: ISSN 1043-7320
Country of Publication:
United States
Language:
English
Subject:
03 NATURAL GAS; NATURAL GAS; PRICING REGULATIONS; NATURAL GAS DISTRIBUTION SYSTEMS; US FERC; ENERGY SOURCES; ENERGY SYSTEMS; FLUIDS; FOSSIL FUELS; FUEL GAS; FUELS; GAS FUELS; GASES; NATIONAL ORGANIZATIONS; REGULATIONS; US DOE; US ORGANIZATIONS; 030600* - Natural Gas- Economic, Industrial, & Business Aspects; 031000 - Natural Gas- Legislation & Regulations

Citation Formats

Williams, P L. Fueling opportunities. United States: N. p., 1994. Web.
Williams, P L. Fueling opportunities. United States.
Williams, P L. 1994. "Fueling opportunities". United States.
@article{osti_7203834,
title = {Fueling opportunities},
author = {Williams, P L},
abstractNote = {The newly restructured natural gas industry is providing greater opportunities for independent energy producers searching to match fuel supply contracts with project needs. Order No. 636's unbundling of the services offered by pipelines completed the deregulation of the gas industry started by the Natural Gas Policy Act of 1978, which began a phased deregulation of wellhead natural gas prices. Traditionally, the pipelines aggregated gas from numerous producers, transported it, stored it if necessary and sold it to a local distribution company or major customer, such as an electric generator. Order No. 636 separates pipeline transportation, sales and storage services and provides open access to pipelines. Customers are now subject to balancing requirements, scheduling penalties and operational flow orders, but there are new flexibilities in purchase and receipt of gas. The capacity release provisions allow those with excess transportation capacity entitlements to market that capacity. The order also favors the straight fixed-variable rate design which increases demand charges by including all fixed charges, including a pipeline's return and taxes, in the demand component of the rate. Under the previous modified fixed-variable methodology, a pipeline's fixed-cost recovery and earnings depended at least in part on maintaining throughput. Critics say the change will reduce the pipelines' incentive to operate efficiently and to market gas aggressively to power generators.},
doi = {},
url = {https://www.osti.gov/biblio/7203834}, journal = {Independent Energy; (United States)},
issn = {1043-7320},
number = ,
volume = 24:2,
place = {United States},
year = {Tue Feb 01 00:00:00 EST 1994},
month = {Tue Feb 01 00:00:00 EST 1994}
}