Study of contracts between interstate pipelines and their customers
This study examines contracts between interstate pipeline companies and direct-sale customers and between pipelines and local distributors for the ultimate sale of natural gas to end-users. Studies previously undertaken by the Energy Information Administration (EIA) have centered principally on the structure of contracts between the producers of the natural gas and the pipeline companies. One provision of these pipeline/distributor contracts which has received increasing attention is a minimum bill clause which requires a minimum payment to a pipeline irrespective of the quantity of gas taken by the distributor company. In a period of declining demand for natural gas, these minimum bill clauses become important, and can have a significant impact on prices to consumers. This report provides the results of a survey based on a sample of pipeline rate schedules on file at the Federal Energy Regulatory Commission (FERC) undertaken by EIA, and discusses the impact of a new rule promulgated by FERC which restricts the costs which can be recovered through minimum bills. The report is intended to be of interest to analysts in the natural gas industry, state and federal regulatory bodies, Congress, and the general public.
- Research Organization:
- USDOE Energy Information Administration, Washington, DC. Office of Oil and Gas
- OSTI ID:
- 6710499
- Report Number(s):
- DOE/EIA-0449; ON: DE84015178
- Country of Publication:
- United States
- Language:
- English
Similar Records
Statistics of interstate natural gas pipeline companies, 1977
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Related Subjects
29 ENERGY PLANNING
POLICY AND ECONOMY
CONTRACTS
ECONOMIC IMPACT
NATURAL GAS
MARKETING
PIPELINES
COST RECOVERY
GAS UTILITIES
GOVERNMENT POLICIES
NATURAL GAS DISTRIBUTION SYSTEMS
PRICES
RATE STRUCTURE
REGULATIONS
ENERGY SOURCES
ENERGY SYSTEMS
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
PUBLIC UTILITIES
032000* - Natural Gas- Transport
Handling
& Storage
294003 - Energy Planning & Policy- Natural Gas
290200 - Energy Planning & Policy- Economics & Sociology