What is a curtailment?

A curtailment is the reduction of gas deliveries due to a shortage of supply or because demand for service exceeds a pipeline's capacity. Usually there is a hierarchy of customers, in which some may be required to partially or totally cut back takes of gas before others. Industrial users, for example, are usually curtailed before service to residential users is reduced.

For our customers who choose interruptible transportation, SEMI issues a curtailment order when service has to be interrupted. This means energy reserves have dropped or are expected to drop below a certain level. The curtailment order signals that rotating outages are going to occur.

Most customers with alternative fuel sources (#2 oil, #6 oil, waste oil, coal and others) choose interruptible service for the majority of their energy load. However, customers agreeing to interruptible service must comply with curtailment orders or pay noncompliance fees.

Interruptible customers are curtailed in order of priority to ensure firm deliveries are met. Residential customers, small general service rate customers and other end users holding firm transportation contracts will not be curtailed.

For more information about the pros and cons of being an interruptible customer, contact an account representative or call us at 800-472-1051. We'll be glad to help you.