| What is distribution service, what is transportation service, and what is the difference? |
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| Distribution service is the transportation service (or capacity utilized) provided by the Local Distribution Company (LDC) from the citygate interconnection with the interstate pipeline to the meter at a specific facility. Transportation service is related to the movement of natural gas supplies from the supply basin to the citygate, sometimes referred to as the "upstream transportation". This service is tied to large volume customers under the applicable rate schedules with their LDC's who are able to contract for their own natural gas commodity. It is the link between the natural gas commodity cost at the production basin and the delivery to the citygate. |
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| Who qualifies to transport gas? |
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| Large industrial customers are eligible for transportation service, depending on their rate schedule with their particular LDC. |
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| What is a citygate delivered price? |
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| Natural gas delivered to the appropriate citygate interconnection with
the LDC's system is commonly priced as "delivered gas" because it included all upstream costs such as transportation, options and margins. |
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| How can I determine the future cost of gas? |
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| It is impossible to determine the future cost of gas without contracting for it in advance. Natural gas commodities are traded on the NYMEX (New York Mercantile Exchange) for future months and years. The natural gas market is one of the most volatile commodities and prices can change with great frequency. |
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| What is being done to alleviate high prices? |
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| Natural gas producers are drilling new wells to help the supply/demand balance. New LNG projects are submitting the required documents to obtain permits to build new sites that will tie into some of the most constraint sections of the national grid as another resource to help meet the supply/demand balance. Additionally, at Cascade we are working to stabilize prices for our customers by diversifying our supply portfolio and working with state commissions on numerous pilot programs. |
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| "What happens if my natural gas needs are expanding along with my facilities?" |
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| Certain LDC system capabilities may determine your immediate ability to increase your distribution needs. There is a finite amount of space available for this service, even though it can be reinforced. As a large industrial customer, you may be able to work through your natural gas representative or agent with the LDC and work out any details and/or additional costs to supply additional service. |
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CGC Energy
