Management places increased importance on measurement and its affect on the bottom line.

Pipeline & Gas JournalVol. 230 Nbr. 7, July 2003

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Summary


Measurement: issues

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Management places increased importance on measurement and its affect on the bottom line.

People outside gas distribution often erroneously think there is little monetary advantage to be gained by improving measurement efficiency and controlling gas losses within distribution systems when the state commissions (or cities, such as in Texas) allow for gas loss rates of up to 5 percent. Even distribution companies believed this until just a few short years ago.

Utilities historically focused on recovering their cost of service (operating expense including allowance for rate of return and income taxes). Gas losses were the norm, and not challenged until they reached a po...

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