An LDC Caucus report, An Issue Paper Regarding Future Unsubscribed Pipeline Capacity, forecasts an increase in reduced subscriptions of firm capacity due to a combination of factors:
s Shifting patterns of gas purchasing will reduce the need for transportation over certain pipeline corridors.
s Single-fixed-variable rate design makes capacity reservation costly for LDCs with low load factors.
s Increased availability of new pipeline connections, storage facilities, and sophisticated capacity-management services creates lower-cost options as alternatives to year-round capacity reservations.
s The threat of bypass and potential for state-ordered unbundling increases risks associated with LDCs that contract for firm transportation.
Using two methods of calculation, the report analyzes the regional potential for significant LDC reductions in capacity reservations by 2000. California and the Great Lakes states exhibit the highest potential. Substantial potential also exists for states in the northern mid-continent area west of the Mississippi River, in southern states immediately west of the Appalachian Mountains and in New England.