[Federal Register Volume 59, Number 89 (Tuesday, May 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11174]
[[Page Unknown]]
[Federal Register: May 10, 1994]
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DEPARTMENT OF EDUCATION
[Docket No. RP94-229-000]
Granite State Gas Transmission, Inc.; Notice of Proposed Changes
in FERC Gas Tariff
May 4, 1994.
Take notice that on April 29, 1994, Granite State Gas Transmission,
Inc. (Granite State) tendered for filing as part of its FERC Gas
Tariff, Third Revised Volume No. 1, the following revised tariff
sheets, containing changes in rates for effectiveness on June 1, 1994:
Third Revised Sheet No. 21
Fourth Revised Sheet No. 22
Third Revised Sheet No. 23
According to Granite State, the increased rates for firm and
interruptible transportation services rendered for its affiliated
distribution customers, Bay State Gas Company and Northern Utilities,
Inc., are based on a test period cost of service consisting of the 12
months of actual operations ending December 31, 1993, adjusted for
known and measurable changes occurring by September 30, 1994. It is
further stated that the test period cost of service reflects costs for
recent additions to plant, projected additions during the test period,
adjusted operating and maintenance expenses, and ad valorem taxes.
Granite State states that the depreciation charges in the cost of
service are based on the depreciation rates established in Granite
State's last rate case. According to Granite State, the test period
cost of service reflects its current costs for debt and equity, for
return on its adjusted rate base and related federal and state income
taxes. It is stated that the debt and equity costs are based on an
adjusted capital structure consisting of 60.3 percent equity and 39.7
percent debt. Granite State states that an overall return of 11.67
percent is claimed on rate base which includes and implicit return of
14.2 percent on the equity component in the adjusted capital structure.
Granite State further states that the test period cost of service
includes an increase in the annual amortization of the costs to convert
a leased crude oil pipeline to natural gas service approved by the
Commission in Docket No. CP87-39-000. Granite State Gas Transmission,
Inc., 40 FERC 61,165 (1987).
According to Granite State, the amortization of the conversion
costs reflected in its existing rates is based on a life of the lease
extending to March 31, 1999. Granite State states that the owner of the
leased pipeline exercised an option to terminate the lease on March 31,
1996 and Granite State negotiated an extension of the lease to March
31, 1999. It is said that the new termination date shortens the period
that Granite State will be operating the leased line by 29 months and
the amortization of the investment costs to convert the leased line to
natural gas service has been adjusted in the test period cost of
service to reflect the shortened life of the lease.
Granite State further states that, in connection with the extension
of the lease of the converted pipeline it agreed to pay for part of the
dismantling, removal and restoration costs to reconvert the pipeline to
oil transportation service. According to Granite State, its commitment
is limited to $1 million and in this filing the test period cost of
service includes an adjustment to amortize this amount over the 29
months of the extended lease to establish a reserve account to hold the
funds until required for the dismantling and restoration.
According to Granite State, copies of its filing were served upon
its customers and the regulatory commissions of the States of Maine,
Massachusetts and New Hampshire.
Any person desiring to be heard or to make any protest with
reference to 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 Rules 211 and 214
of the Commission's Rules of Practice and Procedure (18 CFR 385.211 and
385.214). All such motions or protests should be filed on or before May
11, 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 to the proceeding must file a motion to intervene in accordance
with the Commission's Rules. Copies of this filing are on file with the
Commission and are available for public inspection.
Lois D. Cashell,
Secretary.
[FR Doc. 94-11174 Filed 5-9-94; 8:45 am]
BILLING CODE 6717-01-M
