β Scribed by Randolph, Kenneth E.
No coin nor oath required. For personal study only.
Having selected suppliers at various pricing options, the next step is for the purchaser to firm up its transportation arrangements. In &as where pipeline capacity is overbuilt, it may be just as reliable and more cost effective to continue to rely on interruptible transportation. However, firm transportation and/or storage may be merited where insufficient capacity does not exist and, therefore, intemptible transportation is inadequate.
There are several different options available:
Firm capacity on the existing interstate pipelines is held by the local distribution companies or by a downstream pipeline on behalf of its LDCs. The fastest way for an LDC to obtain firm transportation is to simply convert its firm sales service to firm transportation. Lack of comparability between firm sales service and firm transportation has discouraged conversions to firm transportation, but many LDCs have chosen to convert anyway.
For customers for which converted firm transportation or brokered firm transportation is insufficient or unavail-Kenneth E. Rondolpl, ir senior vice president ond general counsel of h % ~~r c l l Gas Clnrringhouse, of Houston.
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