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If the utility were to go with the emergency pipeline gas at the rate of $1.80/Mcf, then the cost of the emergency gas is $3,070,800. However, the Distrigas option costs only $2,832,011.01, or a savings of $238,788 annually (Appendix 3). The annual cost of the Distigras policy is $21,460,644.64.
Distrigas business strategy should be to project itself as a cost leader, which promises reliability, speed, and the required gas amount when needed, all at an affordable rate...
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The annual cost of the Distigras policy is $21,460,644.64.
Distrigas business strategy should be to project itself as a cost leader, which promises reliability, speed, and the required gas amount when needed, all at an affordable rate. To maintain such a position, it will need to be able to store gas in an economical manner...
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