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Principles and considerations in setting gas distributor transportation rates

Journal Article · · Public Util. Fortn.; (United States)
OSTI ID:5460574
The author gives a broad review of the equity, economic efficiency, and other factors bearing upon the pricing of transportation service for customer-owned natural gas performed by local distribution companies. Interstate pipelines had traditionally purchased and then resold natural gas to local distribution companies (LDCs) who resold the gas to end users. Increasing numbers of end users are now purchasing gas directly and using pipelines and LDCs only as transporters. The author examines the appropriate structure of LDC tariffs for the transportation of customer-owned gas, and finds that transport charges should be based upon the margin that the distributor normally collects on system gas to minimize distortions. Two appendices illustrate the calculations used in the analysis.
Research Organization:
Illinois Commerce Commission, Springfield
OSTI ID:
5460574
Journal Information:
Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 115:4; ISSN PUFNA
Country of Publication:
United States
Language:
English