[Federal Register Volume 63, Number 26 (Monday, February 9, 1998)]
[Notices]
[Pages 6550-6551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-3137]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket Nos. CP98-150-000; CP98-154-000; CP98-155-000 and CP98-156-000]


Millennium Pipeline Company, L.P.; Notice of Applications for 
Certificates and for a Presidential Permit and Section 3 Authorization

February 3, 1998.
    Take notice that on December 22, 1997, Millennium Pipeline Company, 
L.P. (Millennium), P.O. Box 10146, Fairfax, Virginia 22030-0146, filed 
applications pursuant to Sections 3 and 7(c) of the Natural Gas Act. In 
Docket No. CP98-150-000, Millennium seeks a certificate of public 
convenience and necessity to (1) Construct, acquire, and operate a 
natural gas pipeline, to (2) transport up to 700,000 dt of natural gas 
per day for nine shippers, and (3) to authorize a capacity lease and 
exchange arrangement with Columbia Gas Transmission Corporation 
(Columbia). Millennium seeks in Docket No. CP98-134-000 a blanket 
certificate pursuant to Subpart G of Part 284 to provide self-
implementing transportation authority. In addition, Millennium also 
requests in Docket No. CP98-155-000 a blanket certificate pursuant to 
Subpart F of Part 157 to provide certain routine activities. Finally, 
in Docket No. CP98-156-000 Millennium requests a Presidential Permit 
and Section 3 authorization under Section 153 of the Commission's 
Regulations, all as more fully set forth in the application which is on 
file with the Commission and open to public inspection.
    Millennium states that it will be a limited partnership organized 
under the laws of the State of Delaware by Columbia, MCN Investment 
Corporation, TransCanada Pipelines Limited and Westcoast Energy (US) 
Inc.
    In Docket No. CP98-150-000, Millennium proposes to construct 
approximately 376.4 miles of 36-inch diameter pipeline extending from 
an interconnection with facilities to be constructed by TransCanada at 
a United States-Canada border at a point in Lake Erie to a point in 
Ramapo, New York; approximately 39.3 miles of 24-inch pipeline from 
Buena Vista, New York to a point in Mount Vernon, New York; and 
metering and regulating facilities and related facilities. In addition, 
Millennium proposes to acquire from Columbia approximately 6.7 miles of 
24-inch pipeline from Ramapo to Buena Vista; approximately 10.5 miles 
of 10- and 14-inch pipeline from a point in Orange County, New York to 
a point in Pike County, Pennsylvania; the Milford Compressor Station in 
Pike County, Pennsylvania; 9.6 miles of short pipeline segments in 
various counties in Pennsylvania and New York and metering and 
regulating facilities. It is stated that about 86 percent of the route 
will utilize existing Columbia easements or pipeline corridors. 
Millennium estimates the cost of the facilities to be constructed and 
acquired, exclusive of AFUDC, is $677.8 million which would be financed 
through equity contributions and project-financed debt. To eliminate 
duplicate facilities, Columbia has agreed to abandon facilities in 
place, by removal or by conveyance to Millennium. It is indicated that 
Columbia would remove certain segments of pipeline and Millennium would 
later place its pipeline in the same trench.
    Millennium proposes to provide firm service for the following 
shippers:

------------------------------------------------------------------------
                                                  Maximum               
                                                   daily       Term of  
                    Shipper                       quantity     service  
                                                 (Mdth/day)    (Years)  
------------------------------------------------------------------------
CoEnergy Trading Co...........................         65.0           20
Columbia Energy Serv..........................         78.4           15
Duke Energy Trading and Marketing L.L.P.......         23.5           15
El Paso Energy Marketing Canada, Inc..........         15.7           10
Engage Energy (U.S.), L.P.....................        235.1           10
PanCanadian Petroleum Company.................         19.6           10
Renaissance Energy (US) Inc...................         19.6           10
Stand Energy Corp.............................          8.0           20
TransCanada Gas Serv., A Division of                                    
 TransCanada Energy Ltd.......................        235.1           10
------------------------------------------------------------------------

    It is stated that capacity was contracted following a publicly-
announced open season and that each of the shippers has executed an 
exclusive, binding precedent agreement for the firm service to be 
provided by Millennium.
    Millennium proposes to provide firm service under Rate Schedule FTS 
and interruptible service under Rate Schedule ITS, under rates, terms 
and conditions provided in a pro forma tariff submitted with the 
application.
    Millennium proposes to recover all costs associated with the 
transportation service through a reservation charge, with lower rates 
proposed for longer term contracts. Millennium proposes 100 percent 
load factor rates of $0.5353 for 10-year contracts, $0.4989 for 15-year 
contracts, and $0.4745 for 20-year contracts.
    It is indicated that the 10-year rate is based upon a conventional 
cost of service in the first year of operation. It is also indicated 
that, in order to recognize the benefits created by longer term 
commitments from the shippers, Millennium proposes to derive rates for 
the 15 and 20-year contracts at lower levelized rates. It is stated 
that the 15-year rate is based on a levelized cost of service over the 
initial 10 years of the 15-year contracts and the 20-year rate is based 
on a levelized cost of service over the initial 15 years of the 20-year 
contracts. It is also indicated that shippers under 10-year contracts 
and new shippers that obtain firm service after the project's in-
service date will pay a non-levelized rate. Millennium also will offer 
interruptible transportation service at the 100 percent load factor 
derivative of the maximum non-levelized firm rate.
    Millennium proposes to depreciate its facilities over a 20-year 
period, with depreciation rates consistent with the levelized cost of 
service associated with 15 and 20-year contracts, and straight-line 
depreciation for the 10-year contracts. Millennium also proposes that 
it be accorded regulatory asset treatment for the difference between 
its straight-line and levelized depreciation expense. Millennium 
proposes a return on equity of 14 percent, while the cost

[[Page 6551]]

of debt capital is estimated to be 7.5 percent, with an overall rate of 
return of 9.775 percent, based on a 65 percent debt-35 percent equity 
capital structure.
    Millennium requests issuance of blanket certificates pursuant to 
Subpart G of Part 284 of the Commission's Regulations to provide open-
access transportation service and a blanket certificate pursuant to 
Subpart F of Part 157 of the Commission's Regulations to construct 
minor facilities and provide routine operations. Millennium also seeks 
authority under Section 3 of the Natural Gas Act and a Presidential 
Permit to construct and operate border facilities to attach its 
facilities to those of TransCanada.
    Any person desiring to participate in the hearing process or to 
make any protest with reference to said application should on or before 
February 24, 1998, file with the Federal Energy Regulatory Commission, 
888 First St., N.E., Washington, D.C. 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. The Commission's rules require 
that protestors provide copies of their protests to the party or 
parties directly involved. 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.
    A person obtaining intervenor status will be placed on the service 
list maintained by the Secretary of the Commission and will receive 
copies of all documents filed by the applicant and by every one of the 
intervenors. An intervenor can file for rehearing of any Commission 
order and can petition for court review of any such order. However, an 
intervenor must submit copies of comments or any other filing it makes 
with the Commission to every other intervenor in the proceeding, as 
well as an original and 14 copies with the Commission.
    A person does not have to intervene, however, in order to have 
comments considered. A person, instead, may submit two copies of 
comments to the Secretary of the Commission. Commenters will be placed 
on the Commission's environmental mailing list, will receive copies of 
environmental documents and will be able to participate in meetings 
associated with the Commission's environmental review process. 
Commenters will not be required to serve copies of filed documents on 
all other parties. However, commenters will not receive copies of all 
documents filed by other parties or issued by the Commission and will 
not have the right to seek rehearing or appeal the Commission's final 
order to a federal court.
    The Commission will consider all comments and concerns equally, 
whether filed by commenters or those requesting intervenor status.
    Take further notice that, pursuant to the authority contained in 
and subject to the 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 without 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 Millennium to appear or be represented at 
the hearing.
David P. Boergers,
Acting Secretary.
[FR Doc. 98-3137 Filed 2-6-98; 8:45 am]
BILLING CODE 6717-01-M