[Federal Register Volume 63, Number 90 (Monday, May 11, 1998)]
[Notices]
[Pages 25846-25847]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12374]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. RP98-205-000]


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

May 5, 1998.
    Take notice that on May 1, 1998, Granite State Gas Transmission, 
Inc. (Granite State) tendered for filing as part of its FERC Gas 
Tariff, Third Revised Volume No. 1, the original and revised tariff 
sheets listed below proposing changes in rates for effectiveness on 
June 1, 1998:

Thirteenth Revised Sheet No. 21
Fourteenth Revised Sheet No. 22
Eleventh Revised Sheet No. 23
Original Sheet Nos. 336, 337 and 338

    According to Granite State, the foregoing tariff sheets established 
a special surcharge on its existing Base tariff rates for firm and 
interruptible transportation services to recover the costs that Granite 
State will incur during the third extension its lease of

[[Page 25847]]

the pipeline owned by Portland Pipe Line Corporation (PPLC).
    Granite State further states that it has leased a former oil 
pipeline from PPLC since 1986, converted it to natural gas 
transportation and has operated it pursuant to limited-term 
certificates issued by the Commission. It is said that the leased 
pipeline provides a link between Granite State's system at Portland, 
Maine, and the U.S.-Canadian border and provides transportation 
capacity used by Granite State's firm customers, Bay State Gas Company 
and Northern Utilities, Inc. to purchase and receive deliveries of 
Canadian gas.
    According to Granite State, both Bay State Gas Company and Northern 
Utilities have subscribed for capacity on the Portland Natural Gas 
Transmission System (PNGTS) for transportation capacity that will 
replace their entitlements to capacity on the leased pipeline. It is 
further said that PNGTS has proposed an in-service date of November 1, 
1998 but that there have been delays in the construction schedule, 
raising concerns that the project will not be available for service at 
the beginning of the heating season. Granite State further states that 
its transportation customers, particularly Northern Utilities, must 
have access to the transportation capacity on the leased pipeline or on 
PNGTS at the beginning of the 1998-99 heating season.
    According to Granite State, it has negotiated an arrangement with 
PPLC pursuant to which the leased line can be activated again for 
natural gas transportation service on November 1, 1998, and continuing 
thereafter until April 30, 1999.
    Granite State further states that, under the extended lease, it 
will incur costs for rental payments, costs for reconversion of the 
leased line for oil transportation service, a share of certain joint 
costs for the maintenance of PPLC's right-of-way and for property 
taxes, costs for purging gas from the leased line and for Letters of 
Credit in favor of PPLC. Granite State states that it is obligated to 
make a rental payment of $1.5 million to PPLC in one installment on 
October 25, 1998 and a payment of $5.5 million in reconversion costs. 
If the line is activated for gas transportation service on November 1, 
1998, Granite State will be charged $301,000 in fixed monthly rent for 
the use of the leased pipeline, plus $0.078 per MMBtu of gas 
throughput. Granite State's total cost exposure, if it uses the leased 
line for the full period of the lease extension until April 30, 1999, 
is approximately $10.1 million.
    Granite State proposes to recover the lease related costs over a 
12-month period through the special surcharge on its Base Tariff rates 
which will be derived pursuant to the methodology described in a new 
provision, Section 34, added to the General Terms and Conditions of its 
FERC Gas Tariff.
    According to Granite State, copies of its filing have been served 
on its firm and interruptible customers and on the regulatory agencies 
of the states of Maine, Massachusetts and New Hampshire.
    Any person desiring to be heard or to protest this filing should 
file a motion to intervene or a protest with the Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, in 
accordance with Sections 385.214 and 385.211 of the Commission's Rules 
and Regulations. All such motions or protests must be filed as provided 
in 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 
proceedings. 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.
David P. Boergers,
Acting Secretary.
[FR Doc. 98-12374 Filed 5-8-98; 8:45 am]
BILLING CODE 6717-01-M