Key Terms |
Definition |
Commercial Price |
The price of gas used by nonmanufacturing establishments or agencies primarily engaged in the sale
of goods or services such as hotels, restaurants, wholesale and retail stores and other service
enterprises; and gas used by local, State and Federal agencies engaged in nonmanufacturing
activities.
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Local Distribution Company (LDC) |
A legal entity engaged primarily in the retail sale and/or delivery of natural gas through a distribution
system that includes mainlines (that is, pipelines designed to carry large volumes of gas, usually located
under roads or other major right-of-ways) and laterals (that is, pipelines of smaller diameter that connect
the end user to the mainline). Since the restructuring of the gas industry, the sale of gas and/or delivery
arrangements may be handled by other agents, such as producers, brokers, and marketers that are referred
to as "non-LDC."
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Marketer (of Natural Gas) |
A company that arranges purchases and sales of natural gas. Unlike pipeline companies or local distribution
companies, a marketer does not own physical assets commonly used in the supply of natural gas, such as pipelines
or storage fields. A marketer may be an affiliate of another company, such as a local distribution company,
natural gas pipeline, or producer, but it operates independently of other segments of the company.
In States with residential choice programs, marketers serve as alternative suppliers to residential users of
natural gas, which is delivered by a local distribution company.
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Natural Gas |
A gaseous mixture of hydrocarbon compounds, the primary one being methane.
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Nominal Price |
The price paid for a product or service at the time of the transaction.
Nominal prices are those that have not been adjusted to remove the effect of changes
in the purchasing power of the dollar; they reflect buying power in the year in which
the transaction occurred.
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Residential Price |
The price of gas used in private dwellings, including apartments, for heating, cooking, water heating,
and other household uses.
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