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Title: An Ldcs Perspective On The Impact Of Order 436/500
Author: John P. Rudiak
Source: American Gas Association 1988
Year Published: 1988
Abstract: Connecticut Natural Gas Corporation is a local distribution company with approximately 135,000 customers and annual requirements of 30 BCF. It is located near the end of the interstate pipeline systems and is served by two pipelines: Tennessee Gas Pipeline and Algonquin Gas Transmission. Approximately three years ago, when the Federal Energy Regulatory Commission issued the plan to deregulate natural gas (known as Order 436), an opportunity was recognized by Connecticut Natural. The goal of this plan was to provide all parties equal access to pipeline gas transportation. It also provided for quick approval of new services and construction projects if the pipeline was willing to accept sufficient risks. Customers of a pipeUne electing to operate under Order 436, which is a voluntary program, would have originally been entitled to reduce or convert their sales contracts with a pipehne to a firm transportation service. This would enable Local Distribution Companies (LDCs) such as Connecticut Natural to purchase gas supplies directly from producers.

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