ABSTRACT

Natural gas purchasing generally occurs in one of two scenarios. The natural gas customer receives the monthly billing from the natural gas utility and pays it. The natural gas customer orders the natural gas needed on a monthly basis through the services of a provider, and arranges for transportation of natural gas on both an interstate as well as intrastate basis. The introduction of deregulation, has made the natural gas industry more responsive to customer needs and market forces. Efficiencies, prompted by deregulation can reduce costs for natural gas service for all types of customers. A growing number of natural gas customers have the opportunity to purchase natural gas service on an deregulated basis. Most large-volume natural gas customers-such as electric power generation facilities and manufacturing plants-have found the transition to a more competitive environment relatively straightforward. Natural gas deregulation has progressed on a non-uniform basis due to individual state attitudes toward the process.