[Federal Register Volume 61, Number 197 (Wednesday, October 9, 1996)]
[Notices]
[Page 52930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25840]
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DEPARTMENT OF ENERGY
[Docket No. RP97-8-000]
Granite State Gas Transmission, Inc.; Notice of Proposed Changes
in FERC Gas Tariff
October 3, 1996.
Take notice that on October 1, 1996, Granite State Gas
Transmission, Inc. (Granite State) tendered for filing as part of its
FERC Gas Tariff, Third Revised Volume No. 1, revised tariff sheets
containing changes to its Base Tariff Rates for transportation
services, proposed to become effective on November 1, 1996 as follows:
Eighth Revised Sheet No. 21
Ninth Revised Sheet No. 22
Eighth Revised Sheet No. 23
Granite State indicates that the primary purpose of the rate
changes in the instant filing is to recover the additional costs
Granite State will incur that are attributable to an agreement with
Portland Pipe Line Corporation to extend a lease pursuant to which
Granite State operates a pipeline owned by Portland Pipe Line. The
leased line is an 18-inch pipeline, formerly a crude oil pipeline owned
by Portland Pipe Line, which Granite State leased and converted to
natural gas service and began operating as an integral component of its
system in November 1987. The leased line connects Granite State's
system to Canadian gas supplies that are delivered at the border to
Granite affiliated distribution customers, Bay State Gas Company and
Northern Utilities, Inc.
Granite State states that the lease was scheduled to expire on
March 31, 1997, and on March 5, 1996, Portland Pipe Line and Granite
State executed an agreement to extend the lease to April 30, 1998. The
leased pipeline is operated by Granite State pursuant to an limited-
term certificate issued by the Commission. On September 11, 1996, the
Commission extended the limited term certificate to operate the leased
pipeline until April 30, 1998, consistent with the duration of the
lease extension agreement. (Docket No. CP87-39-004)
Granite State's filing indicates that the cost of service submitted
is based on a test year comprised of the 12 months of actual operating
experience ended July 31, 1996, adjusted for known and measurable
changes occurring within 9 months thereafter. The proposed annual
increase in revenues is $3.7 million. In addition to reflecting the
recovery of costs attributable to the lease extension, the cost of
service includes increased costs for operating and maintenance, ad
valorem taxes, costs for complying with the requirements of the Gas
Industry Standards Board, and for minor plant additions. The filing
proposes an overall return of 10.69% on rate base, which includes an
implicit return of 13.50% on equity. The revised Base Tariff Rates are
derived by applying the Straight Fixed Variable method of cost
allocation and rate design to the proposed cost of service.
Granite State further states that the Portland Pipe Line operates a
24-inch crude oil pipeline which parallels the 18-inch line leased to
Granite State. During the term of the lease, Portland Pipe Line expects
to increase the throughput of oil in the 24-inch line. Electric power
costs for operating the pumps on the 24-inch line will increase with
the increase in throughput. Granite State has agreed to reimburse
Portland Pipe Line for the increased power costs. These costs are
extremely variable and depend upon monthly throughput in the 24-inch
pipeline. In this filing, Granite State is proposing to add a cost
adjustment procedure in the General Terms and Conditions of its tariff
to provide a cost recovery mechanism for the electric power costs paid
to Portland Pipe Line. Pro Forma tariff sheets with this proposal are
included in this filing.
According to Granite State, the revised rates in this filing are
applicable principally to the firm transportation services which
Granite State renders to Bay State Gas Company and Northern Utilities,
Inc. Granite State also serves interruptible transportation customers.
Granite State indicates that it has service a complete copy of this
filing by first class mail, postage prepaid, on all of Granite State's
customers and on the regulatory commissions of the States of Maine,
Massachusetts and New Hampshire.
Any person desiring to be heard or to protest said filing should
file a motion to intervene or protest with the Federal Energy
Regulatory Commission, 888 First Street, N.E., Washington, D.C., 20426,
in accordance with Sections 385.211 and 385.214 of the Commission's
Rules and Regulations. All such motions or protests must be filed as
provided in Section 154.210 of the Commission Regulations. Protests
will be considered by the Commission in determining the appropriate
action to be taken, but will not serve to make protestants parties to
the proceeding. Any person wishing to become a party must file a motion
to intervene. Copies of this filing are on file with the Commission and
are available for public inspection in the Public Reference Room.
Lois D. Cashell,
Secretary.
[FR Doc. 96-25840 Filed 10-8-96; 8:45 am]
BILLING CODE 6717-01-M