Natural Gas

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Residential customer class

Gas and electric utility rate structures and regulatory rules typically classify residential customers as a unique class that includes houses, a …

Retail marketer

A retail marketer is a non-utility entity that sells electric supply, natural gas supply, and other energy services directly to end-use customer …

Revenue allocation

Revenue allocation, also called cost allocation, is a step in the utility ratemaking process whereby it is determined how much of the utility’ …

Revenue requirement

A revenue requirement is the total amount of money a utility must collect from customers to pay all its costs, including its return on investmen …

RIIO performance-based ratemaking

RIIO (the name is from the equation Revenues

Service territory

A service territory defines the geographic area where a utility is allowed and required to provide services.

Spark spread

The spark spread is a quantity that represents the difference between the wholesale market price of electricity and the cost of producing electr …

Specified minimum yield strength (SMYS)

When engineers design a steel gas line, they designate a required pipe minimum yield strength, often called the SMYS.

Speculation

Speculation is the act of taking on risk with the goal of making money.

Spot market

In the energy business, a spot market is a commodities market in which the commodity is sold for cash and is delivered to a specific location fo …

Stranded costs

A stranded cost refers to the amount invested in an asset that exceeds the market value of that asset.

Supply-side competition

Supply-side competition refers to competition between providers of a commodity. In natural gas markets it refers to competition between gas prod …

Synthetic natural gas (Syngas)

Synthetic natural gas (SNG), also sometimes called syngas or substitute natural gas, is natural gas that is created from materials that contain …

Therm

A therm is a natural gas unit equal to 100,000 Btu.

Three-part communication

Three-part communication is a process used in the gas and electric industries to limit errors due to lack of effective communication.

Transmission pipe

Transmission line pipe is typically 12 to 48 inches in diameter and constructed of ¼- to ¾-inch thick steel.

Turbine

A turbine is a machine in which the kinetic energy of a moving fluid causes a series of blades to spin, thus converting kinetic energy to mechan …

U.S. energy flow

There are various sources of energy consumed in the United States and different uses for each.

Unbundled service

Unbundled service happens when the distribution company provides the delivery service but another entity such as a marketer or aggregator provid …

Upstream

The natural gas delivery chain comprises three sectors. The upstream sector is often considered to consist of facilities that are used in the pr …