Restructuring local distribution services in a competitive natural gas industry

Journal Article · Sun Dec 31 04:00:00 EST 1995 · NRRI Quarterly Bulletin

OSTI ID:381199

Duann, D J; Costello, K W

The restructuring of local distribution services is now the focus of the natural gas industry. It is viewed by some as the last major step in the {open_quotes}reconstitution{close_quotes} of the natural gas industry and a critical element in realizing the full benefits of regulatory and market reforms that have already taken place in the wellhead and interstate markets. It could also be the most important regulatory initiative for most end-use customers since they are affected directly by the costs and reliability of distribution services. Several factors contributed to the current emphasis on distribution service restructuring. They include the unbundling and restructuring of upstream markets, a realization of the limitations of supply-side options (such as gas procurement oversight), and the increased diversity and volatility of gas demand facing local distribution companies (LDCs). Overall, restructuring requires the LDC to transform itself from a franchised monopoly providing a uniform bundled service into a {open_quotes}competitive{close_quotes} enterprise delivering distinct unbundled services.

• OSTI ID: 381199
• Journal Information: NRRI Quarterly Bulletin, Journal Name: NRRI Quarterly Bulletin Journal Issue: 4 Vol. 16; ISSN NQBUEK; ISSN 8756-632X
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
29 ENERGY PLANNING, POLICY, AND ECONOMY
DEREGULATION
NATURAL GAS DISTRIBUTION SYSTEMS
NATURAL GAS INDUSTRY
PUBLIC POLICY