Local distribution company (LDC)

A local distribution company, or LDC, is the gas utility that transports and distributes gas from the citygate to end users. LDCs may also take responsibility for purchasing and reselling gas to certain classes of end-use customers. Most LDCs are investor-owned utilities regulated by state commissions, but in some cases LDCs are owned by municipalities and are not regulated by the state utility commission. Prior to deregulation most gas was purchased by LDCs and resold to end users under regulated rates and rules. Currently, many large end users — and in some states small customers — purchase their gas supply directly from marketers or producers and simply pay the LDC for transport services.

Some LDCs may also own storage. They may use this storage for their own supply portfolio (serving end-use customers) and/or may offer storage services to end-use customers and/or marketers.

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