[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]


-----------------------------------------------------------------------

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