Define "Nominations" in the Utility Industry

I have not found this word in my corporate business dictionaries. (Said dictionaries may not be of the highest quality, but I didn’t pick them.) The word nominations is being used in quite a bit of literature I am currently reading on the utilities industries (suppliers of electricity or natural gas). It is used in a way similar to “buy options,” but there are cases where that phrase substitution does not seem to make sense.

Any beanies, lawyers, or Utilities employees familiar with it, out here?


Tom~

Assuming you haven’t found any info on this yet:

Did it have anything to do with “emissions” or “the Clean Air Act” or “pollution?”

Nah. I was able to track it down through a co-worker. (I was close.)

A nomination is a statement from a gas or electricity customer, notifying the energy provider how many cubic feet or kilowatts the customer expects to use during the next period. Contracts are written so that if the customer uses much more fuel (causing a shortage on the part of the supplier) or too little fuel (causing the supplier to have produced extra fuel that then went unused) then the customer must pay a penalty. This is generally done among major corporate customers and has no direct bearing on the charges to individual homeowners.


Tom~