[Federal Register Volume 61, Number 197 (Wednesday, October 9, 1996)]
[Page 52930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25840]


[Docket No. RP97-8-000]

Granite State Gas Transmission, Inc.; Notice of Proposed Changes 
in FERC Gas Tariff

October 3, 1996.
    Take notice that on October 1, 1996, Granite State Gas 
Transmission, Inc. (Granite State) tendered for filing as part of its 
FERC Gas Tariff, Third Revised Volume No. 1, revised tariff sheets 
containing changes to its Base Tariff Rates for transportation 
services, proposed to become effective on November 1, 1996 as follows:

Eighth Revised Sheet No. 21
Ninth Revised Sheet No. 22
Eighth Revised Sheet No. 23

    Granite State indicates that the primary purpose of the rate 
changes in the instant filing is to recover the additional costs 
Granite State will incur that are attributable to an agreement with 
Portland Pipe Line Corporation to extend a lease pursuant to which 
Granite State operates a pipeline owned by Portland Pipe Line. The 
leased line is an 18-inch pipeline, formerly a crude oil pipeline owned 
by Portland Pipe Line, which Granite State leased and converted to 
natural gas service and began operating as an integral component of its 
system in November 1987. The leased line connects Granite State's 
system to Canadian gas supplies that are delivered at the border to 
Granite affiliated distribution customers, Bay State Gas Company and 
Northern Utilities, Inc.
    Granite State states that the lease was scheduled to expire on 
March 31, 1997, and on March 5, 1996, Portland Pipe Line and Granite 
State executed an agreement to extend the lease to April 30, 1998. The 
leased pipeline is operated by Granite State pursuant to an limited-
term certificate issued by the Commission. On September 11, 1996, the 
Commission extended the limited term certificate to operate the leased 
pipeline until April 30, 1998, consistent with the duration of the 
lease extension agreement. (Docket No. CP87-39-004)
    Granite State's filing indicates that the cost of service submitted 
is based on a test year comprised of the 12 months of actual operating 
experience ended July 31, 1996, adjusted for known and measurable 
changes occurring within 9 months thereafter. The proposed annual 
increase in revenues is $3.7 million. In addition to reflecting the 
recovery of costs attributable to the lease extension, the cost of 
service includes increased costs for operating and maintenance, ad 
valorem taxes, costs for complying with the requirements of the Gas 
Industry Standards Board, and for minor plant additions. The filing 
proposes an overall return of 10.69% on rate base, which includes an 
implicit return of 13.50% on equity. The revised Base Tariff Rates are 
derived by applying the Straight Fixed Variable method of cost 
allocation and rate design to the proposed cost of service.
    Granite State further states that the Portland Pipe Line operates a 
24-inch crude oil pipeline which parallels the 18-inch line leased to 
Granite State. During the term of the lease, Portland Pipe Line expects 
to increase the throughput of oil in the 24-inch line. Electric power 
costs for operating the pumps on the 24-inch line will increase with 
the increase in throughput. Granite State has agreed to reimburse 
Portland Pipe Line for the increased power costs. These costs are 
extremely variable and depend upon monthly throughput in the 24-inch 
pipeline. In this filing, Granite State is proposing to add a cost 
adjustment procedure in the General Terms and Conditions of its tariff 
to provide a cost recovery mechanism for the electric power costs paid 
to Portland Pipe Line. Pro Forma tariff sheets with this proposal are 
included in this filing.
    According to Granite State, the revised rates in this filing are 
applicable principally to the firm transportation services which 
Granite State renders to Bay State Gas Company and Northern Utilities, 
Inc. Granite State also serves interruptible transportation customers.
    Granite State indicates that it has service a complete copy of this 
filing by first class mail, postage prepaid, on all of Granite State's 
customers and on the regulatory commissions of the States of Maine, 
Massachusetts and New Hampshire.
    Any person desiring to be heard or to protest said 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 385.211 and 385.214 of the Commission's 
Rules and Regulations. All such motions or protests must be filed as 
provided in Section 154.210 of the Commission 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 of this filing are on file with the Commission and 
are available for public inspection in the Public Reference Room.
Lois D. Cashell,
[FR Doc. 96-25840 Filed 10-8-96; 8:45 am]