94-2811. Koch Gateway Pipeline Co.; Proposed Changes in FERC Gas Tariff

[Federal Register Volume 59, Number 26 (Tuesday, February 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2811]


[[Page Unknown]]

[Federal Register: February 8, 1994]


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DEPARTMENT OF ENERGY
[Docket No. RP94-120-000]

 

Koch Gateway Pipeline Co.; Proposed Changes in FERC Gas Tariff

February 2, 1994.
    Take notice that on January 31, 1994, Koch Gateway Pipeline Company 
(Koch Gateway) tendered for filing proposed changes to its FERC Gas 
Tariff, Fifth Revised Volume No. 1.
    Koch Gateway states that this filing proposes changes to the rates 
for Koch Gateway's existing transportation services. This filing is 
being made in accordance with Section V(B) of the Joint Stipulation and 
Agreement entered into between the parties in Docket No. RP92-235 (62 
FERC 61,290 (1993). The tariff is being revised to make those changes 
which are necessary to conform this tariff to meet the operational 
needs of both the customers and Koch Gateway.
    Koch Gateway proposes an effective date of March 1, 1994, for the 
applicable tariff sheets, anticipating that the Commission will 
exercise its authority under Section 4(e) of the NGA to suspend the 
effectiveness of the sheets for the full five month statutory period so 
the applicable sheets are allowed to be made effective August 1, 1994.
    Koch Gateway states that the rates reflected on the proposed tariff 
sheets are based on a cost of service of $195.7 million. This reflects 
the annual operating costs which Koch Gateway expects to incur 
utilizing a base period covering the twelve months ended September 30, 
1993, adjusted for known and measurable changes anticipated to occur 
during the nine-month period ending June 30, 1994.
    Koch Gateway's is proposing an overall rate of return of 12.55 
percent based on a capital structure consisting of 31.47 percent debt 
and 68.53 percent equity and a claimed return on equity of 13.05 
percent. The overall cost of service represents a $8.5 million increase 
in the cost of service which formed the basis of the rates approved by 
the Commission in Docket No. RS92-26.
    In this filing, Koch Gateway proposes to use the same cost 
allocation methodology and rate design which the Commission approved in 
Docket No. RS92-26. This methodology includes the classification of 
fixed costs under the principles of Straight Fixed Variable (``SFV'') 
rate design methodology, the utilization of seasonal maximum daily 
quantities (``MDQ's'') for the No Notice Service (``NNS''), allocation 
of costs to the contract storage services, retainage of the six 100 
mile rate types and designing ITS rates on a 125% load factor basis.
    Koch Gateway is also proposing several changes to its tariff as a 
result of experience gained the first few months of operations under 
Order No. 636.
    Any person desiring to be heard or to protest said filing should 
file a petition to intervene or protest with the Federal Energy 
Regulatory Commission, 825 North Capitol Street, NE., Washington, DC 
20426, in accordance with 18 CFR 385.214 and 385.211. All such 
petitions or protests must be filed on or before February 9, 1994. 
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.
Lois D. Cashell,
Secretary.
[FR Doc. 94-2811 Filed 2-7-94; 8:45 am]
BILLING CODE 6717-01-M