Gas purchasing -- Business, legal, and contracting issues
- Rich, May, Bilodeau and Flaherty, Boston, MA (United States)
While the daily newspapers and radio are full of articles and advertisements concerning the impending opening up of the electric industry to customer choice of supplier, little attention is being given to choice in the natural gas markets. The fact is, however, that except for California and some scattered pilot programs, retail electric markets are not yet open and even the imminent deadlines for retail access may prove to be illusory. For example, Rhode Island retail electric markets, by law, were open to competition July 1, 1997 but a month later less than a handful of customers had chosen alternative suppliers. In contrast, customers everywhere are already able to choose their own gas supplier, other than the local gas utility that had supplied all customers for so many years. With this new freedom of choice comes not only a number of benefits, but also risks. This article seeks to provide customers some guidance in obtaining such benefits and avoiding the risks. Ultimately, that is accomplished through a careful selection process, best done by means of an RFP with expert assistance, and through a negotiated gas contract. Before addressing specific contracting issues one must understand the legal and regulatory framework which governs the transportation of the natural gas.
- OSTI ID:
- 619559
- Journal Information:
- Cogeneration and Competitive Power Journal, Journal Name: Cogeneration and Competitive Power Journal Journal Issue: 2 Vol. 13; ISSN CCPJE8; ISSN 1066-8683
- Country of Publication:
- United States
- Language:
- English
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