[Federal Register Volume 59, Number 56 (Wednesday, March 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6799]


[[Page Unknown]]

[Federal Register: March 23, 1994]


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DEPARTMENT OF ENERGY
[Docket No. CP94-289-000]

 

Equitrans, Inc.; Application

March 17, 1994.
    Take notice that on March 16, 1994, Equitrans, Inc. (Equitrans) 
3500 Park Lane, Pittsburgh, Pennsylvania 15275, filed in Docket No. 
CP94-289-000 an application pursuant to section 7(c) of the Natural Gas 
Act for a certificate of public convenience and necessity authorizing 
the immediate sale for resale in interstate commerce of up to 600,000 
dekatherms (dt) of natural gas under Equitrans, Inc. Rate Schedule MSS 
(Unbundled Merchant Service) from a certificated storage reservoir for 
a limited term expiring either (1) 90 days from the date of issuance of 
the certificate or (2) upon termination of the underlying sales 
contracts if such contracts extend for a period in excess of 90 days, 
all as more fully set forth in the application which is on file with 
the Commission and open to public inspection.
    Equitrans states that sales would be made by Equitrans' merchant 
division, Equitrans Marketing Services Company (EMSC), at market-
clearing rates negotiated with individual customers on an open access 
non-discriminatory basis under Rate Schedule MSS.
    In light of the crucial winter heating requirements being 
experienced throughout much of the United States, Equitrans requests 
that the Commission grant whatever waivers of its Regulations that may 
be necessary to permit the proposed sales to commence no later than 
March 31, 1994. Equitrans further requests pregranted abandonment 
authorization at the expiration of the underlying contracts for the 
sales of the working gas.
    It is stated that the proposed sales would be made from the Hunters 
Cave storage reservoir from gas that was injected under Equitrans' 
blanket certificate for testing and development.\1\ Equitrans states 
that these newly injected volumes need to be withdrawn for testing 
purposes and, due to increased demand, should be made available for 
immediate sale to help meet this winter's heating needs.
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    \1\Section 157.215(a)(4) of the Commission's Regulations 
provides that a storage field developed under these regulations will 
not be utilized to render service without further authorization from 
the Commission, except that gas may be withdrawn for testing 
purposes. This filing was required since Equitrans proposes to make 
sales of gas to be withdrawn.
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    Equitrans states that at the time the additional volumes were 
injected into storage as test gas at Hunters Cave, the gas was 
reflected in Equitrans' rate base in the amount of $2.33 per dt. Upon 
sale of the gas under Rate Schedule MSS at individually negotiated, 
market-based rates, Equitrans proposes to credit its Account No. 164 by 
the amount that the gas is currently reflected in the rate case. If the 
sale is at a price lower than the rate base amount, Equitrans states 
that it will absorb the difference. Equitrans submits that this 
passthrough of revenues to its jurisdictional customers will provide 
them with rate relief while maintaining the same high level of service. 
Equitrans contends that this is the approach recently approved by the 
Commission for the sale of excess storage gas in, among other cases, 
Panhandle Eastern Pipe Line Company, 61 FERC 61,357 at 62,433 (1992), 
reh'g denied on this issue, 62 FERC 61,288 at 62,883-84 (1993).
    Although this and other cases involve sales-in-place, Equitrans 
states that the new gas at Hunters Cave must be withdrawn for 
operational/testing reasons and cannot be allowed to remain in storage. 
Equitrans contends that, nonetheless, the ratemaking determinations for 
sales of excess storage gas should be the same whether or not the gas 
remains in storage.
    Equitrans states that, as in Panhandle, it will bear the full 
revenue risk if the market does not allow the gas to be sold above the 
$2.33 level reflected in the rate base. It is stated that only the 
revenue, if any, above the rate base level will be retained by 
Equitrans, through its merchant division, EMSC.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before April 1, 1994, file 
with the Federal Energy Regulatory Commission, Washington, DC 20426, a 
motion to intervene or a protest in accordance with the requirements of 
the Commission's Rules of Practice and Procedure (18 CFR 385.214 or 
385.211) and the Regulations under the Natural Gas Act (18 CFR 157.10). 
All protests filed with the Commission will be considered by it in 
determining the appropriate action to be taken but will not serve to 
make the protestants parties to the proceeding. Any person wishing to 
become a party to a proceeding or to participate as a party in any 
hearing therein must file a motion to intervene in accordance with the 
Commission's Rules.
    Take further notice that, pursuant to the authority contained in 
and subject to jurisdiction conferred upon the Federal Energy 
Regulatory Commission by sections 7 and 15 of the Natural Gas Act and 
the Commission's Rules of Practice and procedure, a hearing will be 
held with further notice before the Commission or its designee on this 
application if no motion to intervene is filed within the time required 
herein, if the Commission on its own review of the matter finds that a 
grant of the certificate is required by the public convenience and 
necessity. If a motion for leave to intervene is timely filed, or if 
the Commission on its own motion believes that a formal hearing is 
required, further notice of such hearing will be duly given.
    Under the procedure herein provided for, unless otherwise advised, 
it will be unnecessary for Equitrans to appear or be represented at the 
hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 94-6799 Filed 3-22-94; 8:45 am]
BILLING CODE 6717-01-M