Glossary of Terms - R

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

Rate Base: The investment value established by a regulatory authority upon which a utility is permitted to earn a specified rate of return.

Rate Design: The method of classifying fixed and variable costs between demand and commodity components.

Rate of Return: The percentage that a company earns on its investment. A pipeline's rate of return is set by federal regulators.

Rebundling: After pipelines finished unbundling to create a menu of services under FERC's Order 636, a number of industry players began offering "rebundled" services. Marketing companies, as well as pipelines, now offer "one-stop shopping" to customers who prefer not to do all the footwork themselves in setting up gas deals.

Receipt Point: The point at which gas is delivered to or received from a pipeline, such as the interconnection between a producer's wellhead facilities and the pipeline system (also see "delivery point").

Releasing Shipper: The original capacity holder of firm space on a pipeline for which reservation fees are paid. This party may release capacity for others to use.

Replacement Shipper: Party acquiring capacity that has been released by another shipper.

Reservation Charge or Fee: A charge paid to reserve firm transportation capacity on a pipeline. Also referred to as a demand charge.

Reserves: Estimated volume of recoverable natural gas in a reservoir, based on drilling and geological/geophysical information.