TeachMeFinance.com - explain Local distribution company (LDC)
Local distribution company (LDC) The term 'Local distribution company (LDC)' as it applies to the area of energy can be defined as ' A legal entity engaged primarily in the retail sale and/or delivery of natural gas through a distribution system that includes main lines (that is, pipelines designedto carry large volumes of gas, usually located under roads or other major right-of-ways) and laterals (that is, pipelines of smaller diameter that connect the end user to the mainline). Since there structuring of the gas industry, the sale of gas and/or delivery arrangements may be handled by other agents, such as producers, brokers, and marketers that are referred to as 'non-LDC.''.
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