Glossary of Terms - P

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

Peak: Period of greatest gas demand. The peak period in northern regions is during the winter months. In some southern regions and in portions of California, where gas is used for electric generation, the peak is during summer months when air conditioning is in high demand.

Peak Shaving: Supply of fuel gas for distribution systems from an auxiliary source (of limited supply, higher cost) during periods of maximum demand when the primary source is not adequate, e.g. propane, LNG.

Pipeline Rate Case: The regulatory procedure under Section 4 of the Natural Gas Act in which a pipeline, its customers, and the regulatory agency set new overall rates, usually including an evidentiary hearing, a settlement or decision by an administrative law judge, and a final decision by the full Commission.

Pooling Point: The place where gas is aggregated from many receipt points to serve a number of contracts without tying a particular receipt point to a particular contract. Order 636 expanded the definition of a "pooling point" to include places where title passes from the gas merchant to the shipper, or where aggregation, balancing and penalties are determined. Order 636 also prohibits tariffs that inhibit the development of pooling points.

Postage Stamp Rates: Flat rates charged for transportation service without regard to distance, as opposed to zone or mileage-based rates.

Prearranged Release: An agreement that is reached between a releasing shipper and a prospective acquiring shipper. If the acquiring shipper is paying the maximum charge or taking capacity for less than one month, the pre-arranged release will stand as posted on the EBB. If not, other shippers will have an opportunity to make a better bid for capacity. The original bidding shipper then has the "right of first refusal" to retain the space by matching the higher bid.

Price Majeure: The retarding of interruptible gas resulting from significant upward or downward price changes.