[Federal Register Volume 62, Number 241 (Tuesday, December 16, 1997)]
[Notices]
[Page 65803]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32715]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. RP98-84-000]


Tennessee Gas Pipeline Company; Notice of Filing

December 10, 1997.
    Take notice that on December 5, 1997, Tennessee Gas Pipeline 
Company (Tennessee), pursuant to Section 4 of the Natural Gas Act and 
Part 154 of the Regulations of the Federal Energy Regulatory Commission 
(Commission) filed original and revised tariff sheets setting forth 
Tennessee's policy regarding the construction and financing of new 
facilities on its system for the receipt, delivery or measurement of 
natural gas supplies (Receipt and Delivery Facilities).
    Tennessee states that its existing lateral line policy is set forth 
in Article XVII of the General Terms & Conditions of Tennessee's FERC 
Tariff, Volume No. 1 to satisfy the requirements of Section 154.109(b) 
of the Commission's Regulations which requires that the General Terms & 
Conditions of a pipeline's tariff set forth the pipeline's policy 
regarding the construction and financing of delivery laterals, 
including when the pipeline will pay for or contribute to the 
construction cost. Tennessee's existing policy provides that Tennessee 
will not build or contribute to the cost of building any service 
lateral. However, Tennessee has the right to seek a waiver of that 
policy during any proceeding before the Commission instituted under 
Section 7 of the Natural Gas Act.
    Tennessee states that this policy is too inflexible in the 
competitive marketplace which exists today. Thus, Tennessee is 
proposing to eliminate the current provisions of Article XVII.
    Tennessee states that the proposed tariff sheets establish and 
define two categories of Receipt and Delivery Facilities--Tap 
Facilities and Connecting Facilities. The proposed tariff sheets also 
establish two categories of cost reimbursement--prior to the 
construction of the facilities and over time with interest. 
Additionally, the proposed tariff sheets eliminate the current 
provisions of Article XVII and permit Tennessee to contribute to the 
cost of constructing service laterals as Connecting Facilities without 
obtaining a waiver from the Commission. Tennessee states that these 
proposed changes to its tariff will enable Tennessee to compete on a 
level playing field with other pipelines.
    Although Tennessee states that it is not obligated to construct Tap 
Facilities or Tap and Connecting Facilities for any requesting party, 
the proposed tariff sheets provide that, subject to certain conditions 
specified in the tariff sheets, Tennessee will construct Tap Facilities 
or Tap and Connecting Facilities for any requesting party who agrees to 
pay for the cost of constructing such facilities. With respect to the 
financing of Tap Facilities constructed by Tennessee, the proposed 
tariff sheets provide that the requesting party will generally pay 
Tennessee for the cost of such facilities prior to the construction of 
the Connecting Facilities but always prior to the commencement of 
service at the Tap Facilities. With respect to the financing of 
Connecting Facilities, the proposed tariff sheets provide that the 
requesting party shall pay Tennessee for the cost of such facilities 
either prior to the construction of the Tap Facilities but always prior 
to the commencement of service at the Connecting Facilities, over time 
with interest or through some combination thereof.
    Further, the tendered tariff sheets enable Tennessee to pay all or 
a portion of the costs of constructing Connecting Facilities which are 
economically or operationally beneficial to Tennessee. The proposed 
tariff sheets set forth the criteria that Tennessee will evaluate in 
determining whether the construction of Connecting Facilities is 
economically or operationally beneficial to Tennessee.
    The proposed tariff provisions also permit Tennessee to condition 
its construction of Connecting Facilities on the reimbursement by the 
requesting party of related costs such as operating and maintenance 
expenses, administrative and general expenses, gross-up for state and 
federal income taxes, taxes other than income taxes, depreciation costs 
and the time value of money. These provisions recognize that, in 
certain circumstances, it may be appropriate to recover costs of this 
nature from the requesting party rather than the system as a whole. 
Tennessee's decision not to seek recovery of these costs from a 
requesting party would not preclude Tennessee from seeking to recover 
such costs in its general system rates in a Section 4 rate filing.
    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 Section 385.211 and 385.214 of the Commission's 
Rules and Regulations. All such motions or protests should 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 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. 97-32715 Filed 12-15-97; 8:45 am]
BILLING CODE 6717-01-M