Fortnightly Magazine - March 15 1996

Unsubscribed Capacity: A Growing Problem

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.

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