[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