Rate-revenue-cost of service simulation of a natural gas utility

摘要

A major midwestern utility was faced with the dilemma of increased demands for natural gas energy while the supplies of natural gas were diminishing. Questions on how to meet seasonal or off-peak demands, how to utilize underground storage, and how much new supply would be required to eliminate waiting lists for residential customers were typical of the problems confronting this utility. In addition, the cost of service due to inflation and pipeline cost adjustments indicated that this company should perhaps request a general rate increase and required substantial calculations in the PGA (Purchase Gas Adjustment) area.

A set of linked models was built for this utility to answer these questions. The models considered the areas of rate, revenue, cost of gas, PGA, and income. Each model could be run independently of the others; however, all could be linked to provide an integrated planning system for the utility. The models were implemented in a conversational mode on a time-shared computerand allowed the model users to interactively vary rate structures, pipeline contract terms and alternative sources of supply over a five-year planning horizon.