Restructuring local distribution services in a competitive natural gas industry
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, Vol. 16, Issue 4; Other Information: PBD: Win 1995
- Country of Publication:
- United States
- Language:
- English
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