Summary

The industry trend in the sale of natural gas to endusers is one of increased competition and increased customer choice of services. Natural gas commodity and delivery services will be marketed as unbundled components or as rebundled components in an economically attractive and convenient package of services. The LDC will retain the primary responsibility for distribution of gas from the city gate to the customer's facility. This distribution will be available as a regulated unbundled service. LDCs may or may not continue to be the dominant seller of gas to its customers. Third-party brokering of gas is expected to continue its growth as a mainstream service and will likely penetrate even to the residential level. As a result of gas sales competition, commodity pricing is expected to be highly competitive, with modest profit margins achievable by the seller.

Commodity gas and delivery services will continue to be available on a firm and non-firm basis, or various combinations of both. Pipeline transportation rates and LDC distribution rates will remain regulated and will generally be based on the cost-of-service. Customers will be marketed to by pipelines, LDC, gas brokers, and other energy services companies, each striving to provide the best combination of price and customized services to meet specific requirements.

lectricity is consumed by virtually every residential, ■M commercial, industrial, and institutional facility in the United States. As illustrated in Figure 20-1, powered by coal, natural gas, petroleum, nuclear, hydro, and geo-thermal energy, some 30 quadrillion Btu (31.7 trillion MJ) are consumed in providing 3 billion MWh per year of electric power to the nation's electricity consumers.

infusion of increased competition in the electric generation market. Environmental considerations and growth in non-utility generation (NUG), both fueled by federal legislation, have also had their impact in redefining the electric industry.

The trend toward deregulation in the electric industry has and will continue to have a profound impact on

Electric Utilities

Coal 16.21

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