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Title: City Gate Price Projections: A Dynamic Pricing Model
Author: F. F. L. Gaertner, A. Compton
Source: American Gas Association 1976
Year Published: 1976
Abstract: The rapidly changing environment of the gas industry declining reserves, increasing demand, increasing costs, development of nontraditional supply-require rapid responses to gauge the impact on city gate prices. The pricing model described in this paper is an aid to natural gas tramsmission companies in preparing long range economic, financial and marketability analyses. It tests assumptions of partial or complete deregulation occurring ai any future point in time. Existing gas purchase contracts and potential supply addition can be priced out at discrete time intervals, based on contract provisions and projected rate schedules, which include existing area rates and area rate projections as well as projections for deregulated wellhead prices.

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