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For both firm and interruptible customers, curtailment periods can upset a company's operations and ultimately the bottom line.
The use of interruptible contracts is one of the standard tools National Grid uses to balance the gas network in the conditions we expect to see in a severe winter.
The respondents to Form EIA-903 were 34 natural gas companies who accounted for nearly all of the volumes delivered to end users under interruptible c ontracts in the Northeast in 1998, while respondents to Form EIA-904 were 97 end users in New England who received natural gas under interruptible service contracts.
Because the last time dual-fuel customers were asked to switch over to gas was in the winter of 1995/96, four years ago, many interruptible customers neglected their oil reserves.
It is worth noting at this point that, as both interruptible and curtailable rates are currently formulated, firms receive a credit on the basis of discounted demand, rather than on the actual or expected amount of load reduction.
Under the Interruptible Load Program, business customers that consume at least 1 megawatt may opt to run their own generator sets instead
Participants in organized markets face competitive pressures and other requirements that may make the traditional firm and interruptible gas services, at best, a very imperfect match for their needs," says Andrew Ulmer, director, Federal Regulatory Affairs, California Independent System Operator Corporation.
Tenders are invited for Interruptible Natural Gas Supply
Total capacity for the Interruptible Load Program (ILP) is now at 133 megawatts (MW), said Meralco's head of utility economics Lawrence Fernandez.
Tricor Ten Section Hub LLC's non-binding open season for its planned natural gas storage and hub facility in Kern County, CA 10 miles southwest of Bakersfield, resulted in significant oversubscription for firm service, and Tricor also received bids for interruptible and hub services.