(also, “curtailable rate”): a special arrangement under which, in return for lower rates, the customer must either reduce energy demand on short notice or allow natural gas utility to temporarily cut off the energy supply for the utility to maintain service for higher priority users.
Allows for a more economical gas rate during normal operational periods.
Natural gas service can be interrupted during severe weather and/ or a user’s rate can skyrocket.
Creative ratemaking has the ability to shape behavior and help bring about a change. Getting off natural gas will be challenging.