HI5019 STRATEGIC INFORMATION SYSTEMS FOR BUSINESS AND ENTERPRISE Assignment Help Holmes
Residential customer gas usage is highly correlated with the weather. Commercial customer usage is partially weather dependent. Industrial customer usage is governed almost entirely by business factors.
The company buys natural gas from 10 pipeline companies in the amounts specified in contracts that run for 5 to 15 years. For some contracts, the supply is in equal monthly increments; for other contracts, the supply varies according to the heating season. Supply over the contract amounts is not available, and some contracts contain take-or-pay clauses. That is, the company must pay for the gas volume specified in the contract, regardless of the amount used.
To match customer demand with supply, gas is pumped into a storage field when supply exceeds customer demand. Gas is withdrawn when demand exceeds supply. There are no restrictions on the gas storage field except that the field must be full at the beginning of each gas year (September 1). Consequently, when the contractual supply for the remainder of the gas year is less than that required to satisfy projected demand and fill the storage field, CGC curtails service to industrial customers (except for heating quantities). The curtailments must be carefully controlled to prevent either an oversupply at year-end or a curtailing of commercial or residential customers so the storage field can be filled at year-end.