Firm service
Encyclopedia
Firm services, also called uninterruptible services, are services, such as electricity
and natural gas
supplies, that are intended to be available at all times during a period covered by an agreement. Also, the service is not subject to a prior claim from another customer and receives the same priority as any other firm service. Conditional firm service is similar to firm service in that it is reserved and has priority over interruptible service. However, it can have restrictions, such as times when it would be curtailed before firm service but after interruptible service. The cost per unit with this service is called a firm rate or uninterruptible rate. The opposite of firm service is non-firm service, also called interruptible service or as-available service. The cost per unit for this service is called a non-firm rate or interruptible rate. The interruptible load is the portion of a utility's load that comes from customers with interruptible service.
Firm service cannot be interrupted during adverse conditions, such as periods of high demand. However, firm service may also refer to service that is covered by a long-term contract
, such as a year or more. There are extreme cases when firm services may be interrupted, such as emergencies and when system reliability is threatened. Services to homes and small businesses are usually firm. Some businesses that cannot afford interruptions also have firm service. Businesses that can afford to have services interrupted or that can significantly reduce their consumption when notified by the provider can get better rates by having non-firm service. Customers that have non-firm service may have a low level or baseline firm service that is guaranteed so that they do not have to shut down completely. Firm and non-firm service is also available for companies that rent or lease pipeline
or electrical transmission capacity.
Firm service for natural gas pipelines and electrical transmission lines often include two charges. The first is a reservation charge related to how much capacity the customer reserves. This charge is paid regardless of how much capacity is actually used. The second charge is based on how much capacity is used. Interruptible rates are volumetric, being based only on the volume of gas or electricity delivered.
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
and natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
supplies, that are intended to be available at all times during a period covered by an agreement. Also, the service is not subject to a prior claim from another customer and receives the same priority as any other firm service. Conditional firm service is similar to firm service in that it is reserved and has priority over interruptible service. However, it can have restrictions, such as times when it would be curtailed before firm service but after interruptible service. The cost per unit with this service is called a firm rate or uninterruptible rate. The opposite of firm service is non-firm service, also called interruptible service or as-available service. The cost per unit for this service is called a non-firm rate or interruptible rate. The interruptible load is the portion of a utility's load that comes from customers with interruptible service.
Firm service cannot be interrupted during adverse conditions, such as periods of high demand. However, firm service may also refer to service that is covered by a long-term contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
, such as a year or more. There are extreme cases when firm services may be interrupted, such as emergencies and when system reliability is threatened. Services to homes and small businesses are usually firm. Some businesses that cannot afford interruptions also have firm service. Businesses that can afford to have services interrupted or that can significantly reduce their consumption when notified by the provider can get better rates by having non-firm service. Customers that have non-firm service may have a low level or baseline firm service that is guaranteed so that they do not have to shut down completely. Firm and non-firm service is also available for companies that rent or lease pipeline
Pipeline transport
Pipeline transport is the transportation of goods through a pipe. Most commonly, liquids and gases are sent, but pneumatic tubes that transport solid capsules using compressed air are also used....
or electrical transmission capacity.
Firm service for natural gas pipelines and electrical transmission lines often include two charges. The first is a reservation charge related to how much capacity the customer reserves. This charge is paid regardless of how much capacity is actually used. The second charge is based on how much capacity is used. Interruptible rates are volumetric, being based only on the volume of gas or electricity delivered.