The glossary of terms is arranged alphabetically. Click on the
letters below to find terms beginning with that letter.
Peak: Period of greatest gas demand. The peak
period in northern regions is during the winter months. In some
southern regions and in portions of California, where gas is
used for electric generation, the peak is during summer months
when air conditioning is in high demand.
Peak Shaving: Supply of fuel gas for
distribution systems from an auxiliary source (of limited
supply, higher cost) during periods of maximum demand when the
primary source is not adequate, e.g. propane, LNG.
Pipeline Rate Case: The regulatory procedure
under Section 4 of the Natural Gas Act in which a pipeline, its
customers, and the regulatory agency set new overall rates,
usually including an evidentiary hearing, a settlement or
decision by an administrative law judge, and a final decision by
the full Commission.
Pooling Point: The place where gas is
aggregated from many receipt points to serve a number of
contracts without tying a particular receipt point to a
particular contract. Order 636 expanded the definition of a
"pooling point" to include places where title passes from the
gas merchant to the shipper, or where aggregation, balancing and
penalties are determined. Order 636 also prohibits tariffs that
inhibit the development of pooling points.
Postage Stamp Rates: Flat rates charged for
transportation service without regard to distance, as opposed to
zone or mileage-based rates.
Prearranged Release: An agreement that is
reached between a releasing shipper and a prospective acquiring
shipper. If the acquiring shipper is paying the maximum charge
or taking capacity for less than one month, the pre-arranged
release will stand as posted on the EBB. If not, other shippers
will have an opportunity to make a better bid for capacity. The
original bidding shipper then has the "right of first refusal"
to retain the space by matching the higher bid.
Price Majeure: The retarding of interruptible
gas resulting from significant upward or downward price changes.