[Federal Register Volume 65, Number 208 (Thursday, October 26, 2000)]
[Notices]
[Pages 64206-64207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27486]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP01-5-000]


Algonquin Gas Transmission Company; Notice of Application

October 20, 2000.
    Take notice that on October 10, 2000, Algonquin Gas Transmission 
Company (Algonquin), 5400 Westheimer Court, P.O. Box 1642, Houston, 
Texas 77251-1642, filed in Docket No. CP01-5-000 an application 
pursuant to the provisions of section 7 of the Natural Gas Act for a 
certificate of public convenience and necessity to construct and 
operate pipeline facilities for the transportation of natural gas, to 
establish initial incremental rates for service, and to authorize the 
leasing of capacity on the proposed facilities and on Algonquin's 
existing system all as more fully set forth in the application which is 
on file with the Commission and open to public inspection. This filing 
may be viewed on the web at http://www.ferc.fed.us/online/rims.htm 
(call 202-208-2222 for assistance).
    Specifically, Algonquin seeks to construct and operate: (1) 
Approximately 29.4 miles of 24-inch pipeline from an interconnection 
near Beverly, Massachusetts with the proposed facilities of Maritime & 
Northeast Pipeline L.L.C. to an interconnection with Algonquin's 
existing I-9 lateral in Weymouth, Massachusetts; \1\ (2) a 5.4 mile 16-
inch lateral from milepost 16.3 of the 29.4-mile proposed pipeline to 
the wastewater treatment plant owned by the Massachusetts Water 
Resources Authority (MWRA) on Deer Island (Deer Island Lateral); (3) a 
meter station on the Deer Island Lateral; and (4) other appurtenant 
facilities. Algonquin states that the proposed facilities will be 
capable of delivering approximately 230,500 dekatherms (Dth) per day on 
a year-round basis at an estimated cost of $159 million. Algonquin 
proposes to place the facilities in service on November 1, 2002.
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    \1\ From Beverly, the proposed pipeline will proceed offshore 
through Beverly Harbor, Salem Sound, Massachusetts Bay, Boston 
Harbor, Quincy Bay, and Hingham Bay. The last 0.5 mile of pipeline 
will proceed onshore to the interconnection with the existing 
Algonquin facilities.
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    Algonquin has executed: (1) Precedent agreements with Sithe Power 
Marketing L.P. (Sithe, 140,000 Dth per day), Southern Energy Kendall 
L.L.C. (35,000 Dth per day), Southern Connecticut Gas Company (20,000 
Dth per day), and Providence Gas Company (500 Dth per day); a letter of 
a agreement with MWRA (25,000 Dth per day); and a lease agreement with 
Texas Eastern Transmission Corporation (80,000 Dth per day). The firm 
service under these various agreements totals 300,500 Dth per day. Of 
this total, 220,500 Dth per day will transported through the proposed 
facilities.\2\ Algonquin will render this firm transportation service 
subject to its existing Rate Schedule AFT-1. In addition to the 
currently effective rates under Rate Schedule AFR-1, Algonquin proposes 
to establish an incremental reservation surcharge of $1.8607 per Dth 
for those agreements that specify primary firm delivery points and/or 
primary firm receipt points between (and including) Beverly and 
Weymouth. The surcharge is based on the cost of the facilities 
(exclusive of the Deer Island Lateral) plus the cost of the Fore River 
lateral facilities approved in Docket No. CP00-34-000. In addition, 
Algonquin proposes to establish an initial incremental recourse rate 
for service on the Deer Island Lateral of $10.4366 per Dth that is 
based solely on the cost of the Deer Island Lateral.
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    \2\ Algonquin's existing agreement with Sithe under Rate 
Schedule AFT-CL for 70,000 Dth per day of firm service that was 
approved in Docket No. CP00-34-000 will be converted to an agreement 
under Rate Schedule AFT-1 for service in this proceeding. The path 
of this service will be from the interconnection of Algonquin's I 
and Q system's to Sithe's Fore River generating station in Weymouth.
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    Algonquin seeks authorization to lease 80,000 Dth per day of 
capacity from Beverly to the existing interconnection between Algonquin 
and Texas Eastern in Lambertville, New Jersey for a term of 20 years. 
The fixed monthly lease payment under the Lease Agreement is $559,360. 
In addition, Texas Eastern will pay a volumetric charge equal to the 
maximum commodity charge applicable to Rate Schedule AFT-1 per 
dekatherm delivered at Lambertville. Algonquin states that the monthly 
lease payment is less than maximum recourse rate and thus meets 
Commission standards for lease payments.
    Algonquin states that the revenues from the proposed incremental 
charges will allow the construction of the proposed facilities without 
any subsidization from existing customers, therefore satisfying the 
Certificate Policy Statement's (Policy Statement) threshold 
requirement.\3\ Algonquin avers that it has made significant efforts to 
minimize any adverse impacts in accordance with the Policy Statement.

[[Page 64207]]

Further, Algonquin asserts that its proposal provides significant 
benefits to its firm shippers and to the public, including: providing 
service to new electric generation customers and local distribution 
company shippers that have executed service agreements with Algonquin; 
providing direct access to a new source of supply for markets behind 
the Algonquin and Texas Eastern systems; lowering natural gas costs by 
providing upstream pipeline alternatives; increasing the reliability of 
the electric generation and transmission grid; and advancing clean air 
objectives.
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    \3\ See, 88 FERC para. 61,227 (1999), clarification 90 FERC 
para. 61,128 (2000), further clarification 92 FERC para. 61,094 
(2000).
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    Any questions regarding the application should be directed to 
Steven E. Tillman, Director of Regulatory Affairs, Algonquin Gas 
Transmission Company, P.O. Box 1642, Houston, Texas 77251-1642 at 713-
627-5113.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before November 13, 2000, 
file with the Federal Energy Regulatory Commission, 888 First Street 
NE., Washington, DC 20426, a motion to intervene or protest in 
accordance with the requirements of the Commission's Rules of Practice 
and Procedure (18 CFR 385.211 and 385.214) and the regulations under 
the NGA (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. Any 
person wishing to become a party in any proceeding must file a motion 
to intervene in accordance with the Commission's rules. Beginning 
November 1, 2000, comments and protests may be filed electronically via 
the internet in lieu of paper. See, 18 CFR 385.2001(a)(1)(iii) and the 
instructions of the Commission's web site at http://www.ferc.fed.us/efi/doorbell.htm.
    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 issued by the Commission, filed by the 
applicant, or filed by all other 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 serve copies of comments 
or any other filing it makes with the Commission to every other 
intervenor in the proceeding, as well as filing 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 an original and two 
copies of such 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 Commission by 
sections 7 and 15 of the NGA 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 the proposal 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 for, unless otherwise advised, it will be 
unnecessary for Algonquin to appear or to be represented at the 
hearing.

David P. Boergers,
Secretary.
[FR Doc. 00-27486 Filed 10-25-00; 8:45 am]
BILLING CODE 6717-01-M