The glossary of terms is arranged alphabetically. Click on the
letters below to find terms beginning with that letter.
Capacity Release (also called Capacity Assignment):
The ability of a holder of firm transportation rights
("capacity") to allocate, release or assign, permanently or
temporarily, all or part of that capacity to others.
Cash-out: Mechanism that allows shippers to
resolve imbalances (above or below those that are resolved
through "book-out" procedures) by selling gas to the pipeline,
or purchasing gas from the pipeline.
City gate: Physical location (facility) where
gas is delivered by a pipeline to a local distribution company.
CME Group: The largest, most diverse financial
exchange in the world for trading futures and options for both
individual and institutional traders. Formed by the 2007 merger
of the Chicago Board of Trade and Chicago Mercantile Exchange;
followed by the 2008 acquisition of New York Mercantile Exchange
(NYMEX). The exchange where the natural gas futures and options
and other energy futures are traded.
Cogeneration: The sequential production of
electricity and useful thermal energy from the same energy
source. Natural gas is a favored fuel for combined-cycle
cogeneration units, in which waste heat is converted to
Commodity Charge: That portion of a natural gas
sales or transportation rate based upon the volume actually used
Contract Demand: The daily, monthly or annual
quantity of gas or transportation a supplier or transporter
agrees to furnish and for which a buyer agrees to pay a set
charge. Often expressed in monthly fees for daily maximum
Contract (Futures): The natural gas futures
contract is in reality a set of regulations under which buyers
and sellers adhere. The standard contract for natural gas is
10,000 MMBtu. The contract specifies the unit of sale, how it is
quoted in dollars, minimum and maximum price fluctuations, when
and at what times the contract is traded, how delivery is made
and over what period, and penalties for failure to make or take
delivery if one is holding along or short position at the
termination of trading.
Cubic Foot: The most common unit of measurement
of gas volume. The amount of gas required to fill a volume of
one cubic foot under standard conditions of temperature,
pressure and water vapor, usually referenced to 14.7 PSI and 60
degrees Fahrenheit. Very roughly, one cubic foot equals 1,000
Btu's (1 Cf= 1 MBtu).
Curtailment: Reduction of gas deliveries due to
a shortage of supply or because demand for service exceeds a
pipeline's capacity. Usually there is a hierarchy of customers,
in which some may be required to partially or totally cut back
takes of gas before others. Industrial users, for example, are
usually curtailed before service to residential users.
Customer Classes: The common classes of
customers that receive service from a utility are: residential,
commercial, industrial, electric generation and sale for resale.
The state of California designates customer classes as core
(residential and small commercial/ industrial users) and
non-core (large users who qualify for interruptible
transportation). California also has a core subscription class
of non-core customers who choose to buy from the distributor.