Effectively Managing Natural Gas Costs
| Date: 21 April 2011, 05:32
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Natural gas purchasing is generally deregulated on a federal or interstate basis. However, intrastate, there are many conditions that come into play which typically translate into higher costs for the commercial or industrial user. This book is intended to serve as comprehensive reference which can be used by the natural gas purchaser to sort out both the potential pitfalls that can negatively impact gas costs, and the opportunities for significant savings available to the informed user. Each step in the process of natural gas production and delivery to the marketplace is thoroughly examined, including production, inter/intrastate transportation, regulation, cost factors, local distribution, company structures, and deregulation processes. Also fully covered is the natural gas LDC billing process, and how understanding it can lead to significant savings
Table of Contents
CHAPTER 1 Natural Gas—An Overview
The natural gas scenario
What is natural gas
Miscellaneous information about natural gas
Deregulation in the natural gas industry
Natural gas restructuring summary
Regulations/laws that affect the production/supply segment
Regulations/laws that affect natural gas pipeline companies
Regulations/laws that affect local distribution companies
U.S. gas market changes over the last decade
Units of measurement
Synopsis
CHAPTER 2 Regulation of Natural Gas
Local Distribution Company (LDC)
Natural gas – the plentiful fuel
Intrastate regulation (within the states)
Federal entities
Interstate regulation (between states)
The Influence Intrastate Regulation has on Natural Gas Costs
The natural gas regulation process
Major intrastate natural gas LDC’s
Synopsis
CHAPTER 3 Developing a Strategy for Reducing Natural Gas Costs
Producing a cost reduction strategy
Basic LDC data needed
What is an Applicable Tariff or Rate Schedule?
Sales tax and economic development enterprise zone data
Unregulated engineering service company (ESCO) programs
Why is reducing natural gas costs so complicated
Synopsis
CHAPTER 4 Understanding the Natural Gas LDC Billing Process
The natural gas LDC billing process
Natural gas billing example – LDC full serving billing
Natural gas billing example – LDC delivery service
Marketer natural gas billing example – marketer natural gas delivery service
Synopsis
CHAPTER 5 The Natural Gas Process
Natural gas – from exploration to customer burner tip
Exploration
Extraction
Processing natural gas
Interstate transportation
Intrastate natural gas pipelines
Natural gas storage
Intrastate transportation distribution
Classes of natural gas service
Alternate/backup fuel systems
Natural gas deregulation
The purchase of deregulation natural gas
Quantitative data required to evaluate an agent transportation contract
Interstate transportation – routing and cost
Necessary items on agent’s billing to customer
Synopsis
CHAPTER 6 The Deregulated Natural Gas Agent Contract Process
Contract processes
How to establish a fixed price for natural gas
The best contract for the customer
The RFP process
Synopsis
CHAPTER 7 Billing, Nomination, Balancing, and Hedging Procedures
The monthly billing process—nomination and balancing procedures
Hedging strategies
Synopsis
CHAPTER 8 Choosing a Natural Gas Consultant
The natural gas consultant
Establishing a natural gas cost reduction program
Natural gas bill auditors
Synopsis
CHAPTER 9 Analyzing Your Facility for Natural Gas Savings
Putting all of the information to use
The natural gas evaluation process
Details of a thorough natural gas facility analysis
Items to consider when analyzing for natural gas savings opportunities
Synopsis
CHAPTER 10 Synopsis of Natural Gas
Summary of natural gas cost reduction strategies
Comparison of natural gas costs with electricity costs
What customers need to do to reduce natural gas costs
Synopsis
CHAPTER 11 Glossary of Natural Gas Terms
INDEX
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