Improving Load Factors Can Increase Profits

✍ Scribed by Taylor, Craig A.

• Book ID: 102220473
• Publisher: John Wiley and Sons
• Year: 2008
• Weight: 375 KB
• Volume: 8
• Category: Article
• ISSN: 0743-5665
• DOI: 10.1002/gas.3410080403

✦ Synopsis

The ongoing deregulation of the interstate pipeline business by the FERC is placing increasing importance on themanagement of load factors. LDCs, large end users, and shippers have experienced or will experience increased fixed costs as deregulation proceeds unless they have a well thought-out strategy for load-factor management.

The prospect for higher costs or alternately, the opportunity for significant savings due to furtherderegulation, depends on how each user of interstate pipelines manages the efficiency with which it uses the pipelines.