[Federal Register Volume 59, Number 44 (Monday, March 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5096]
[[Page Unknown]]
[Federal Register: March 7, 1994]
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DEPARTMENT OF ENERGY
[Docket No. RP94-149-000]
Pacific Gas Transmission Co.; Proposed Change in FERC Gas Tariff
March 1, 1994.
Take notice that on February 28, 1994, Pacific Gas Transmission
Company (PGT) submitted for filing pursuant to section 4 of the Natural
Gas Act, new and revised tariff sheets in Second Revised Volume No. 1
and First Revised Volume No. 1-A of its FERC Gas Tariff. PGT states
that the primary and alternate tariff sheets revised rates for its
transportation services and reflect other changes to the FERC Gas
Tariff, Second revised Volume No. 1 and First Revised Volume No. 1-A.
PGT states that the revised rates reflect an increase of approximately
$22.6 million over present rates. An effective date of April 1, 1994 is
proposed for the revised tariff sheets.
PGT states that it is submitting this general rate case in
compliance with the Settlement Agreement approved by the Commission in
Docket No. RS92-46-000, which requires PGT to file a rate case pursuant
to section 4 of the National Gas Act within fourteen months of the
commencement of restructured services on PGT's system in order to
provide a forum for the resolution of whether rates applicable to PGT's
shippers should be determined on an equalized basis.
In this regard, PGT states that the primary tariff sheets submitted
reflect rates per mile of haul that have been equalized through rolled-
in cost allocation so that the only difference in charges from firm
service will reflect the distance the gas is transported. PGT requests
that the Commission order an expedited procedural schedule that will
allow this issue to be resolved (and rates implemented) by the end of
the suspension period. PGT states that the current regime of vintaged
rates is irreparably harming PGT's shippers because the substantial
rate disparities that exist under vintaged pricing severely impair the
ability of shippers subject to surcharges to release capacity as
contemplated by Order No. 636, et seq. In the event the Commission is
unable to resolve this issue by the end of the suspension period, PGT
requests authority to implement its proposed equalized rates at the end
of the suspension period (subject to refund) pursuant to an escrow
arrangement, which is more fully discussed in PGT's filing. PGT states
that, in the event the Commission does not grant either request, it is
submitting alternate tariff sheets reflecting the continuation of
vintaged pricing to become effective pending the Commission's final
determination on its primary tariff sheets.
PGT states that the annual cost of service underlying the proposed
rates is $216,925,450, which is based on the twelve months of actual
experience ending October 31, 1993, adjusted for known and measurable
changes occurring during the nine-month period ending July 31, 1994. As
more fully set forth in PGT's filing, this annual cost of service
reflects updated operation and maintenance expenses; an overall rate of
return of 9.24%, based on a capital structure consisting of 65.5% debt
and 34.5% equity, a cost of debt of 7.26%, and a cost of equity of
13.00%; updated plant costs; updated depreciation expenses that reflect
an increase in the depreciable basis and a change in the depreciation
rate for transmission plant due to an extension of the useful life for
older transmission plant to 2023, and revised negative salvage value
rates; and adjustments to tax expenses.
PGT states that it has not changed the method of Straight-Fixed
Variable cost classification and rate design the Commission approved,
most recently in PGT's restructuring proceeding in Docket No. RS92-46-
000. PGT further states that it has also continued to design and bill
the firm reservation charges on the basis of contract demand, and
allocated costs and designed rates on a strict mileage basis using
contract demand and commodity units. In addition, PGT states that it is
fully allocating its total cost of service between interruptible and
firm transportation service and designing its rates to recover the
allocated costs.
PGT states that it is submitting certain tariff modifications to
afford shippers additional flexibility, including overrun service for
all firm and interruptible shippers under Rate Schedules FTS-1 and ITS-
1; to permit shippers to determine the length of the bidding period for
all subject capacity releases; to streamline the number of release
types; to shorten the time period to effectuate a Rapid Release; and to
add a reservation charge credit provision and clarifying and updating
other provisions of PGT's open-access tariff.
PGT states that copies of its filing were served on all
jurisdictional customers and interested state regulatory agencies.
Any person desiring to be heard or protest said filing should file
a motion to intervene or protest with the Federal Energy Regulatory
Commission, 825 North Capitol Street, NE., Washington, DC 20426, in
accordance with Secs. 385.214 and 385.211 of the Commission's Rules of
Practice and Procedure. All such motions or protests should be filed on
or before March 8, 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
in the public reference room.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 94-5096 Filed 3-4-94; 8:45 am]
BILLING CODE 6717-01-M
