Glossary of Terms - I

The glossary of terms is arranged alphabetically. Click on the letters below to find terms beginning with that letter.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Imbalance: Discrepancy between the amount a shipper contracted to use or transport and actual volumes used or transported. Shippers may be forced to pay an imbalance penalty for variances greater than a certain percentage. Marketers sometimes take responsibly to balance loads so their customers can avoid penalties.

Incremental Rates: The allocation of cost for an additional service or construction project directly to those who benefit from the service instead of rolling it into overall rates. To determine the incremental unit cost, the added cost is divided by the added capacity or output.

Indexing: Tying the commodity price in a contract to other published prices, such as NYMEX prices, spot prices for gas or alternate fuels, or general indexes like the Government Consumer Price Index or Producer Price Index.

Interruptible Service: Gas service subject to interruption at the option of the pipeline. Also referred to as "best efforts." Tariffs for interruptible service are cheaper than firm service. Interstate Gas: Gas transported through interstate pipelines to be sold and consumed in states other than the one in which it was produced. Also refers to gas produced in the federal domain of the Outer Continental Shelf.

Intrastate Gas: Gas sold and consumed in the state in which it was produced and not transported in interstate pipelines.

IT: Interruptible transportation.