Glossary 1 Flashcards
BALANCING
Reconciling an LDC’s delivery of gas into a pipeline with withdrawals out of a pipeline system. Balancing may be required daily, monthly or seasonally with penalties assessed for excessive transportation imbalances.
BASIS DIFFERENTIAL
The difference in the market value of natural gas at two separate physical locations at the same point in time.Used as a proxy for the market value of pipeline transportation between those two locations at that time.
BTU
British Thermal Unit. The quantity of heat required to raise one pound of water, one degree Fahrenheit.
CAPACITY ASSIGNMENT
The process by which an entity that holds the rights and obligations to interstate pipeline capacity transfersthose rights and obligations to another entity.
CCF
100 cubic feet.
CGA
Cost of Gas Adjustment. The mechanism by which a utility periodically adjusts its prices in order to compensate for changes in thegas acquisition costs.
CITY GATE
Physical location where gas is delivered by an interstate pipeline to a local distribution company.
COGENERATION
The sequential production of electricity and useful thermal energy from the same energy source.
CUBIC FEET
The most common unit of measure of gas volume. One cubic foot roughly equals 1,000 Btu’s.
CURTAILMENT
Reduction of gas deliveries because of a shortage of supply or because demand for service exceeds a pipeline’scapacity.
DEKA THERM
10 therms of 1 million Btu’s. Very roughly = 1 MMBtu.
DISTRIBUTION
Local pipeline delivery of natural gas.
DUAL-FUEL
The ability of a facility or piece of equipment to use more than one kind of fuel, usually gas or oil.
FERC
Federal Energy Regulatory Commission.
FIRM SERVICE
The highest quality sales or service offered to customers; anticipates no planned interruption.
FUEL LOSS
A percentage of gas received by a pipeline or LDC that is retained to compensate for lost and unaccounted for gas.
INTERRUPTIBLE SERVICE
Gas service, which is subject to interruption at the option of the pipeline or LDC. Tariffsfor interruptible service are cheaper than firm.
INTERSTATE PIPELINE
A federally regulated company engaged in the business of transporting natural gas across state lines fromproducing regions to end use markets.
LDC
Local Distribution Company (i.e. the utility)
LNG
Liquefied Natural Gas. Natural gas converted to a liquid state, usually for storage purposes, by pressure and severe cooling.
LOAD FACTOR
The ratio of the average amount of gas a customer takes to the peak amount of gas a customer takes ina given period.
MCF
1,000 cubic feet.
NYMEX
New York Mercantile Exchangeother energy futures are traded.
OFF-PEAK
Period of year when minimum demand for fuel occurs (typically April through October). Generally, costsare lower during this period.
