[Federal Register Volume 60, Number 51 (Thursday, March 16, 1995)]
[Pages 14276-14277]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6455]


Federal Energy Regulatory Commission

Pacific Gas Transmission Co.; Notice of Amendment

[Docket No. CP93-618-004]
March 10, 1995.
    Take notice that on March 3, 1995, Pacific Gas Transmission Company 
(PGT), 160 Spear Street, San Francisco, California, 94105-1570, filed 
an application in Docket No. CP93-618-004. In this case, PGT is seeking 
an amendment to a Certificate of Public Convenience and Necessity 
issued in Docket Nos. CP93-618, et al. under Section 7(c) of the 
Natural Gas Act, and Part 157, Subpart A of the commission's 
Regulations. The Certificate that PGT seeks to amend was issued by the 
Commission's Order of January 12, 1995, in the above dockets. PGT wants 
to partially increase the size of the Medford Extension, one of the two 
pipeline extensions approved by the January 12, 1995, Order. PGT's 
proposal is more fully set forth in the amendment which is on file with 
the Commission and open to public inspection.
    PGT now seeks to construct and operate about 22 miles of 16-inch 
pipeline on the Medford Extension, from the interconnection with PGT's 
mainline to Klamath Falls, Oregon, rather that 12-inch pipeline for 
that segment. The remainder of the 86.5 miles of the Medford Extension, 
which continues on to Medford, Oregon, would be a 12-inch pipeline, as 
previously approved. The increased diameter pipe would allow for 
additional capacity on the Medford Extension so PGT can provide up to 
90,000 MMBtu per day of additional firm transportation service to 
Diamond Energy, Inc. (Diamond Energy). Diamond Energy, a subsidiary of 
Mitsubishi Corp., and the City of Klamath Falls have plans to jointly 
build a gas-fired electric generation station which would be 
operational in 1998.
    PGT states that it seeks to take advantage of the short-term 
opportunity to install the larger pipe when the Medford Extension is 
initially constructed this summer. PGT says that this will avoid 
unnecessary future environmental disruptions and higher project costs 
associated with the future construction of pipeline looping or 
compressor facilities in three years time. PGT says that the additional 
cost of the larger pipe is estimated to be $2.3 million, including 
AFUDC. The increased costs of the 16-inch pipe would be held out of the 
rate base of the Medford Extension until after service to Diamond 
Energy begins.
    PGT proposes to recover the incremental cost-of-service of the 
increased pipe size through surcharges to its existing FTS-1 Rate 
Schedule. Diamond Energy would pay the FTS-1 rate for mainline service 
and a surcharge for service on the Medford Extension.
    PGT says that the surcharge that Diamond Energy would pay is a 
negotiated rate based on the avoided costs of Diamond Energy; Diamond 
Energy would not have to build its own pipeline to PGT. The negotiated 
reservation surcharge is $0.090388 for the first 45,000 MMBtu per day 
of service and $0.035477 for the second 45,000 MMBtu per day of 
    PGT says that incremental revenues from the rates paid by Diamond 
Energy will reduce costs of WP Natural Gas, a division of The 
Washington Water Power Company (Wash. Water), the only other customer 
on the Medford Extension. In the January 12, 1995, Order the Commission 
approved a special deferred cost recovery account/ rate mechanism for 
Wash. Water. PGT says that Wash. Water's obligations under the deferred 
cost recovery mechanism will be reduced and shortened in time from 30 
years to 18 years. PGT says it will include this revenue crediting 
information in its annual reports/filings containing the adjusted Wash. 
Water rate and related information on any deferred balance.
    PGT proposes to recover the cost of Medford Extension based upon a 
straight-line depreciation schedule which is equal to the length of the 
transportation agreements for each extension. For service to Wash. 
Water over the Medford Extension the term of the contracts is 30 years, 
(there are two contracts between PGT and Wash. Water). For service to 
Diamond Energy over the Medford Extension the term of the contract is 
27 years. Diamond Energy would begin service in November, 1998, three 
years after Wash. Water begins service.
    PGT states that copies of its amendment have been sent to all 
interested state regulatory agencies and all parties on the official 
service list in Docket No. CP93-618, et al. PGT asks for expeditious 
approval of its proposal by June 1, 1995, so that the Medford Extension 
can be in-service by November, 1995. Otherwise, it will withdraw its 
request to install the 22 miles of 16-inch pipe and only build the 
approved 12-inch pipeline extension.
    Any person desiring to be heard or to protest said amendment should 
file a motion to intervene or protest with the Federal Energy 
Regulatory Commission, [[Page 14277]] 825 North Capitol 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 
should be filed on or before March 24, 1995. 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 or 
to participate as a party in any hearing therein must file a motion to 
intervene in accordance with the Commission's Rules. However, any 
person who has already filed an intervention(s) in Docket No. CP93-618, 
et al., need not file again.
Lois D. Cashell
[FR Doc. 95-6455 Filed 3-15-95; 8:45 am]