A simulation model of market expansion policies for natural gas distribution utilities

A long-term simulation model is developed to evaluate the impacts of different market expansion policies for a natural gas distribution utility serving a multi-county region. The model is based on economic, engineering, accounting, and regulatory relationships, and is designed to replicate the operations and decision-making processes of the real world system composed of the utility, its suppliers, its customers, and its regulators. Each market expansion policy is evaluated in the light of financial, adequacy of service, and economic efficiency criteria. The usefulness of the model is illustrated for the East Ohio Gas Company.