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Title: Can The Volume Based Rate Be Saved?
Author: Dean Hale
Source: American Gas Association 1982
Year Published: 1982
Abstract: The pricing of gas service is a complicated process. This is probably true because accoumants, lawyers, economists, and statisticians have had such a great input to the ratemaking process. Not to mention politicians and social scientists. The volume-based rate for gas service is widely used. As far as we can determine, nearly every entity providing gas service uses the volume-based rate in some fashion. Events of the past eight years or so quite possibly can lead to a very simple question: Is the volume-based rate out of date? Is it, like the dodo, extinct -as a useful concept? This question is asked seriously, because the rate-making process does lag actual conditions, and gas distributing utilities are feeling the impact not only of thai lag, but also of changing market conditions.




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