Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

Pricing local distribution services in a competitive market

Technical Report ·
DOI:https://doi.org/10.2172/231326· OSTI ID:231326
Unbundling and restructuring of local distribution services is the focus of the natural gas industry. As a result of regulatory reforms, a competitive local distribution market has emerged, and the validity of traditional cost-based regulation is being questioned. One alternative is to completely unbundle local distribution services and transform the local distribution company into a common carrier for intrastate transportation services. Three kinds of alternative pricing mechanisms are examined. For firm intrastate transportation services, cost-based pricing is the preferred method unless it can be shown that a competitive secondary market can be established and maintained. Pricing interruptible transportation capacity is discussed.
Research Organization:
National Regulatory Research Inst., Columbus, OH (United States)
Sponsoring Organization:
National Association of Regulatory Utility Commissioners, Washington, DC (United States)
OSTI ID:
231326
Report Number(s):
NRRI--95-12; ON: DE96011044
Country of Publication:
United States
Language:
English