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 gas”, “unaccounted for gas”, 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. Read More