AGA GRF-1987 Gas Rate Fundamentals (Fourth Edition F00502)《气体率基本原理.第四版 F00502》.pdf

1、ikl iMMSSSM (M iXUMSdU . O C3I3 JO= -c o f a. GAS RATE FUNDAMENTALS Fourth Edition 1987 American Gas Association Rate Committee 1515 Wilson Boulevard, Arlington, VA 22209 GAS RATE FUNDAMENTALS Fourth Edition Copyright o 1987 by the American Gas Association Printed in the United States of America All

2、 rights reserved. This book, or parts thereof, may not be reproduced in any form without permission of the American Gas Association Foreword GAS RATE FUNDAMENTALS-Fourth Edition Gas Rate Fundamentals first appeared in 1960. The book was sponsored by the Rate Committee of the American Gas Association

3、 as a reference work on gas rate fundamentals and practices. That edition was “a col lection of papers especially proposed by rate men in various segments of the gas industry.“ A revised edition was issued in 1969, then a Third Edition was published in 1978. Like its predecessors, this Fourth Edi ti

4、on reflects some modest revisions as well as some rather extensive editing of particular chapters. During this latest rewriting effort, the gas industry was changing rapidly. Thus, some chapters may not fully describe important but very recent developments. Each chapter in this edition was revised b

5、y a member of the Rate Committee as well as by the editor. The chapters then were reviewed by other members of the committee. Therefore, the book reflects the work and views of many individual rate professionals. Some members of the Rate Committee may hold views that differ from those presented in t

6、his work. Similarly, the publication of Gas Rate fundamentals by the American Gas Association does not imply that the thoughts, view points, and positions expressed are necessarily those of the Associa tion or its member companies. Because ratemaking is a dynamic art, readers must judge the prin cip

7、les set forth here in the light of their own particular circumstances. They must look beyond the scope of this reference work to determine which ideas are relevant and appropriate to them. In any case, the Fourth Edition of Gas Rate Fundamentals continues a tradition begun more than 25 years ago. Th

8、e book describes principles and practices that will help gas industry rate men and women do their jobs in a tech nically competent way. Ill The Fourth Edition of GAS RATE FUNDAMENTALS has been sponsored and prepared by the A.G.A. RATE COMMITTEE Chairmen Samuel R. Clammer, Chairman 1982-1984 Lone Sta

9、r Gas Company G. Gerald Turner, Chairman 1984-1986 Alabama Gas Corporation Richard Hare, Chairman 1986-1988 National Fuel Gas Distribution Corporation Editor of the Fourth Edition Robert G. Uhler National Economic Research Associates, Inc. Contributing Authors for the Fourth Edition Charles F. Belkn

10、ap, Jr., Consumers Power Company Joseph A. Bettinger, National Fuel Gas Distribution Corporation James R Bolduc, Connecticut Natural Gas Corporation Janice Coleman, Arizona Public Service Company Jay A. Copan, American Gas Association Joseph R. Crespo, Coopers cumulative frequency curve of consolida

11、ted factor 252 Introduction Ratemaking for public utilities involves the application of the principles of economics, engineering, accounting, statistics, law, and public rela tions. While this is true of ratemaking for all types of public utility enterprises - railroad, telephone, water, electric, a

12、nd gas - Gas Rate Fun damentals applies particularly to gas utilities. Two types of gas com panies are described in this reference work: A gas distribution company is an enterprise that furnishes gas service within its own service area, principally to end-use con sumers. Such a utility may also prod

13、uce and transport part of the gas that it supplies to its customers. A gas transmission company (i., pipeline company) is an enter prise that transports gas from production areas to distribution service areas. Its customers are primarily gas distribution utilities. A pipeline may also produce a part

14、 or all of the gas that it transports and it may have some distribution operations. While gas production companies are mentioned, their operations are not described in any detail in this book. A proper understanding of ratemaking requires a general knowledge of the history of the gas industry as wel

15、l as an appreciation of the economics of gas production, transmission, and distribution. Present rate structures reflect historical considerations as well as economic fac tors. Today, it is impossible for a rate person of a pipeline or distribu tion company to carry out his or her duties without a g

16、eneral knowledge of other aspects of the gas industry. Moreover, the rate analyst must recognize the mutual responsibilities of each segment of the industry (ije., production, pipeline transmission, and local distribution). A listing of abbreviations used in the gas industry and a numerical conversi

17、on table can be found at the back of the book. A useful companion reference, published separately, is A.G.A.s Glossary for the Gas Industry. American Gas Association, Glossary for The Gas Industry, 1986. xvii xviu GAS RATE FUNDAMENTALS GAS UTILITIES IN THE UNITED STATES In 1985, gas utilities in the

18、 United States transported and distributed 132 miUion therms (a therm equals 100,000 Btus) of energy to 50 miUion customers. The utilities total revenues were $63.3 billion. To provide this amount of service, the utilities required plant and equipment hav ing a book cost of $87 billion. To furnish f

19、uture service, the industry invested an additional $5.7 billion in 1984 for new construction and to maintain deliverability. This giant industry began with the Gas Light Company of Baltimore in 1816, followed by the Boston Gas Light Company in 1822 and the New York Gas Light Company in 1825, to name

20、 only the first three enterprises. These early utilities distributed Tnanufactured gas. It was used principally for lighting. Gas ranges for cooking came later-in 1851. Natural gas was first distributed in 1821 in Fredonia, New York. It was, however, 1858 before the first recorded corporation to off

21、er natural gas service was organized, also in Fredonia. For many years thereafter, natural gas was distributed on a small scale in communities near gas fields. As more and more gas fields were discovered, the distribution of natural gas expanded. In the early 1930s, improvements in the manufacture o

22、f pipe made long distance pipelines possible. These brought natural gas from the southwest producing areas to the midwest. This caused manufactured gas companies to convert to natural gas or mixed gas operations. After 1945, manufactured gas was supplanted by natural gas because of its economic adva

23、ntages to utilities and customers alike. WHAT IS A PUBLIC UTILITY? A public utility is an entity that furnishes an essential service and operates under grants of public privilege. In brief, it is a business af fected with the public interest that operates under a franchise or license issued by a gov

24、ernmental agency. (Generally, a utility has a monopoly or partial monopoly on its particular service within a clearly defined area. The firm, however, is not protected from the competition posed by other forms of energy or service. A utility is subject to public regulation - the open scrutiny of its

25、 accounting, financing, earnings, pricing, and service policies. CHARACTERISTICS OF GAS PUBLIC UTILITIES The unique characteristics of gas public utilities include: INTRODUCTION XIX The capital investment in plant and property is large in relation to annual revenue and return. The rate of capital tu

26、rn-over, therefore, is slow. Utility investment is “fixed“ because of its long life, specialized character and fixed location. The production plant or incoming natural gas line must be physically connected with every piece of equipment to provide service. Many small com ponents of distribution prope

27、rty, such as mains, regulators, ser vice pipes, and meters, are required to establish the physical con nection with the premises of each customer. Storage of gas is needed because of variations in the seasonal de mand of the various types of customers. Public utilities tend to have decreasing unit c

28、osts with an expan ding scale of operations. Thus, there may be incentives towards large scale operation and organization. Utility enterprises generally must secure franchises from govern mental authorities for specific territorial service areas. Competition between gas distribution utilities within

29、 a given ser vice area would lead to duplication of facilities and higher unit costs of operation. Although there is generally no competition bet ween gas utilities within the same service area, gas is in com petition with other forms of energy and with other types of enter prises seeking the consum

30、ers dollar. The pricing, accounting, and financing policies of utilities, as well as the adequacy and quality of service, are usually regulated by governmental tencies. Almost all aspects of the business are sub ject to investigation and regulation. The legal antecedents of our modern public utility

31、 concept can be found in the early common law of England. The English courts imposed duties for enterprises “affected with a public interest.“ These originally included only bridges and ferries, but subsequently other types of ac tivities were covered. They were required to: Serve all who apply for

32、service within the franchise area. Serve the maximum requirements of a customer. Provide safe and adequate service. Avoid unjust discrimination. Charge a reasonable price for service rendered. Capital Intensity The plant investment needed to produce a dollar of public utility revenue is much larger

33、than that required in almost any other type of business. In recent years, however, these figures have tended to decrease because of the rapid escalation of fuel costs. XX GAS RATE FUNDAMENTALS Not only do utilities require a laie investment per dollar of revenue, but much of their investment is in t

34、he form of land, structures, and specialized long-lived fixed plant and equipment. Because utilities generally do not retain sufficient earnings to pay for future expansion, it is often necessary for them to be able to raise mon at a reasonable cost. A large proportion of utility financing is in the

35、 form of fixed in come securities because of: (1) the large amount of capital employed; (2) the limited average return allowed by regulatory authorities; and, (3) the need to maintain levels of earnings on common stock investments comparable with equity returns in other industries. In recent times,

36、regulators insisted that debt capital should represent not more than about 55 percent of the total capitalization of gas distribution utilities. Special circumstances, of course, may warrant a higher or lower debt ratio. The allowed rate of return has varied from time to time, depending to some exte

37、nt on economic climate, and state by state depending on local considerations. In addition, the methods for determining rate of return vary. Most states use original cost rate bases, while some jurisdic tions use fair value. The authorized rate of return is not guaranteed. Moreover, a deficiency in e

38、arnings in one period generally cannot be recouped in a later period. Rates are set for future periods of time. Competition Many years agc it became evident that the most economical utility operations involved a single utility of a particular type in a given area. Two or more utilities would have un

39、necessary and uneconomic duphca-tion of facilities resulting in higher rates to consumers. Usually, there is no competition between gas utilities within the same service area. Nevertheless, there is real and active competition between gas service and other forms of energy. For example, for home heat

40、ing, the residential consumer may have a choice between gas, oil, wood, and electricity. Likewise, manufacturing companies can choose between gas and several other forms of energy (e.g., residual fuel oil or coal) for their process and comfort heating requirements. Regulation Public utilities in the

41、 United States have faced increasing governmen tal regulation since the first public utility commissions with plenary regulatory powers were established in 1907. Their original purpose was to secure for the public the advantages and economies of public INTRODUCTION xxi utility type operations within

42、 a given service area at reasonable regulated prices. Before such regulatory authorities were established, attempts were made to set utility rates by legislative action. This ap proach broke down because the rates were inflexible and frequently were unfair to either the customer or the utility. Beca

43、use ratemaking involves many elements, the state regulatory commissions have been given power to investigate and regulate financing and accounting of the utilities, to establish standards of service and safety, and to en force those service standards. Today, ail states have regulatory com missions a

44、lthough the scope of regulatory authority varies con siderably. The Federal Energy Regulatory Commission regulates the transportation and sale of natural gas in interstate commerce and the pricing of such gas. Ratemaking Elements In designing rates, a utility considers both the cost and the value of

45、 the service, as well as the purpose for which the gas service is used. Utility rates are generally not made for individual customers (except for specialized industrial applications under certain circumstances) but for customers by class of use, such as residential, commercial, small industrial, lar

46、ge industrial, space heating, etc. The cost of service is frequently used as one element in fixing rates, in conjunction with the value of the service to the customer, the competitive costs of other forms of energy, the previous level of rates, and the provisions of state or federal regulatory requi

47、rements. Before a new or revised utility rate can be made effective, it must be submitted to a state regulatory authority. Under the law, a commis sion has the power to allow the rate to become effective or to suspend it beyond the original requested effective date to allow time for an in vestigatio

48、n as to the reasonableness of the filed rate. If, following a hearing, the regulatory commission determines that the proposed rate is too high, too low or unfair either to the consumer or to the utility, the commission can require the utility to submit a new rate. This rate must be just and reasonable on the basis of evidence that was submit ted to the commission during the hearing. Ratemaking, in brief, is the process of pricing the utilitys service so as to meet a test of reasonableness by customers as well as regulatory acc