Balancing: The process of managing a customer's natural gas supply to match the customer's daily usage with the customer's confirmed pipeline delivery of natural gas supplies.
Basis: The value differential in price between two points. (i.e., NYMEX vs. Houston Ship Channel)
BTU: One British Thermal Unit: The quantity of heat required to raise the temperature of one pound of water, one degree Fahrenheit.
Cashout: Cost of liquidating the monthly imbalances.
Curtailment: Notification that end-user’s gas might be cut short or interrupted per the contract requirements. A reduction in gas deliveries or gas sales necessitated by a shortage of supply.
Daily Imbalance: Difference between the nominated volume and the actual daily usage.
Firm Service: The highest quality sales or service offered to customers — no planned interruption. This includes both a firm commodity and transportation.
City Gate: Physical location where gas is delivered by an intrastate pipeline to a local distribution company.
Interruptible Service: Gas service that is subject to interruption at the option of any party. Tariffs or rates for interruptible service are cheaper than firm.
Monthly Imbalance: Accumulation or total of daily imbalances for the month.
Nomination: A request for a physical quantity of gas to be delivered at a specific point.
LDC: Local Distribution Company — the regulated utility.
Line Loss: A percentage of gas received by a pipeline or LDC that is retained to compensate for lost and unaccounted for gas in a pipeline system.
MCF: 1,000 cubic feet.
NYMEX: New York Mercantile Exchange: The commodity exchanges based in New York where natural gas futures contracts and other energy futures are traded.
Telemetry: Technology that allows remote measurement and reporting of natural gas consumption. Measurement information can be accessed through pipeline websites.