Glossary of Terms
Not familiar with a term? We've got you covered!
Just and Reasonable as in J&R rates. This is a subjective term in ratemaking.
The process of burying offshore or river crossing pipelines by hydraulically blowing sand or dirt from beneath the pipelines.
- Joint Use (or Common Use) Facility
A facility jointly used by two or more power generating units.
Portion of the company’s activities that are subject to the rules and regulations of the particular government entity which regulates it.
That part of a natural gas company’s business which is subject to the rules and regulations of the Commission. Generally, the Commission has (1) rate jurisdiction over transportation and sales of gas for resale in interstate commerce and (2) certificate jurisdiction over those facilities (except purely gathering) used to transport gas across state lines in interstate commerce.
- Just and Reasonable
Section 4(a) of the NGA of 1938 specifies that all rates and charges made, demanded, or received by any natural gas company for or in connection with the transportation or sale of natural gas ... shall be “just and reasonable.” The term “just and reasonable” has been interpreted to apply to rates which are assessed without undue bias or discrimination that allow the natural gas companies to recover all prudently incurred costs applicable to rate payers, including a return on capital (i.e., the cost of capital) sufficient to maintain and support its credit and enable it to raise the money necessary for the proper discharge of its public duties.