[Federal Register Volume 62, Number 111 (Tuesday, June 10, 1997)]
[Notices]
[Pages 31587-31588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15047]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. RP97-373-000]
Koch Gateway Pipeline Company; Notice of Proposed Changes in FERC
Gas Tariff
June 4, 1997.
Take notice that on May 30, 1997, Koch Gateway Pipeline Company
tendered for filing as part of its FERC Gas Tariff, Fifth Revised
Volume No. 1, the tariff sheets listed on the filing, to become
effective December 1, 1997.
Koch states that the proposed changes would increase revenues from
jurisdictional service by $81 million based on the 12-month period
ending January 31, 1997, as adjusted.
Koch states that this filing proposes changes to the rates for Koch
Gateway's transportation and gathering rates to reflect cost increases,
and the change in rate design to a zone gate method comprised of four
zones for pricing its transportation services. Koch further states that
the filing fulfills its commitment under Section VII of the Joint
Stipulation and Agreement dated February 10, 1995, approved in Docket
No. RP94-120, and it addresses a significant undercollection of Koch's
current settled cost-of-service.
Koch Gateway proposes an effective date of July 1, 1997, 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 become effective December 1,
1997.
Koch seeks to increase the cost-of-service used to derive its
maximum tariff rates by $81 million over its settled cost-of-service
level established in Docket No. RP94-120 and by $48 million over the
cost-of-service which Koch originally filed for in Docket No. RP94-120.
As part of the enhancements to Koch's system included in this increase,
Koch has reduced its fuel rate from 2.0% to 1.6%, while Koch's
customers will benefit from new assets, including installation of new
information systems.
Koch seeks to roll-in the costs of its Bastian Bay supply lateral,
with these facilities costs paid by customers utilizing this zone. Koch
proposes inclusion of a negative salvage provision for onshore
transmission facilities, allowing for recovery of future abandonment
costs. All other depreciation rates remain the same, however, annual
depreciation expense increased by $23 million over the depreciation
expenses included in the currently effective rates from Docket No.
RP94-120.
Koch proposes a hypothetical capital structure in its filing, and
that it be granted 58% equity and 42% debt upon which to base its
return. Koch seeks an overall rate of return on equity of 17.7%. The
rate of return in the currently effective rates is 14.16% pretax. The
return and income taxes included in this filing are $82 million, an
increase from its previous rates.
Koch proposes change in its rate design from six 100-mile types to
a zone gate method. It has divided its system into four geographic
zones and provided for a system access charge in addition to a zone
component for each zone theoretically utilized to provide
transportation service. The zone rate structure will only apply to
Koch's firm and interruptible transportation services. No-Notice
service rates, including the small customer option, will continue under
average postage stamp rates based upon seasonal MDQs.
Koch states that the proposed rate increase is the result of
increases in Koch's cost-of-service, its rate base, and the utilization
of a discount adjustment to throughput for the purpose of designing
rates. No change from SFV rate design methodology, nor in the
functionalization or classification of assets or expenses is proposed.
Interruptible transportation service remains on a 100% load factor
design basis and Koch maintains its 33.3% load factor to impute volumes
for small customer option services. The proposed rates will not affect
Koch's NNS-SCO, FTS, FTS-SCO or ITS customers which are currently
capped by previously negotiated discounted transportation agreements.
Koch states that the tariff sheet changes propose to eliminate ITS
revenue crediting, propose zones for calculation of transportation
rates, and other minor changes.
Any person desiring to be heard or to protest this 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 385.214 and 385.211 of the Commission's
rules and regulations. All such motions or protests must be filed in
accordance with Section 154.210 of the Commission's 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
[[Page 31588]]
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. 97-15047 Filed 6-9-97; 8:45 am]
BILLING CODE 6717-01-M
