Getting A Better Handle On Lost And Unaccounted For Gas
Tuesday August 9, 2016
Natural gas is a major source of electricity in the United States. Roughly one-third of the 33 trillion cubic feet of gas produced each year is used to power our homes and businesses. And it's the gas delivery and transmission industry that ensures these services are delivered nationwide.
Most of us don't think about this industry often, or the gas for that matter, unless it's unavailable when we need it, or it costs more than usual. But it's important to pay attention. That's because not all of the gas flowing through our pipelines actually reaches its intended destination a problem that is further complicated by a poorly defined and complex method for tracking this paid-for but unused gas.
An indicator of gas system efficiency, accounting for lost gas (known by insiders as lost and unaccounted for gasâ€, unaccounted for gasâ€, LAUF or its many other acronyms) is how distribution companies manage the overall flow and supply of gas through their systems. Essentially, it is a ratemaking tool for calculating the difference between the volume of gas purchased by operators and the volume of gas delivered to customers that includes leakage, venting, theft, meter errors, temperature and pressure changes and other factors.
Complicated, to say the least, the reporting and accounting of this lost gas gets even more complex with the countless, disparate methodologies industry uses to calculate it. Without a common metric, there's no way to compare performance across operators and improve the efficiency of the nation's gas delivery system.
Need for Transparent Accounting
Last week, however, EDF and other stakeholders came together to address this issue. Together we approached the North American Energy Standards Board (NAESB) a leading non-profit organization that develops standards for the gas and electric industries to develop a uniform way to calculate LAUF. Better accounting of the gas passing through our pipeline system can help identify solutions to reduce unnecessary leakage and stabilize inefficiencies in the system.
Industry observers have also pointed out the benefits. A uniform calculation method will allow ratepayer advocates and public ...