[Federal Register Volume 66, Number 69 (Tuesday, April 10, 2001)]
[Notices]
[Pages 18619-18620]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-8772]



[[Page 18619]]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP01-141-000]


PG&E Gas Transmission, Northwest Corporation; Notice of 
Application

April 4, 2001.
    Take notice that on April 2, 2001, PG&E Gas Transmission, Northwest 
Corporation (PG&E), 1400 SW Fifth Avenue, Suite 900, Portland, Oregon, 
97201, filed an application pursuant to Section 7(c) of the Natural Gas 
Act for authorization to increase compression at five existing 
compressor stations and to install approximately 21 miles of pipeline 
looping, all as more fully set forth in the application 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/htm (call 202-208-2222 for 
assistance).
    PG&E states the purpose of the project is to provide additional 
firm service under its existing Part 284 blanket certificate, with 
partial service commencing November 1, 2001, and full service 
commencing in the summer of 2002. These facilities, it is asserted will 
allow PG&E to bring more than 207,000 Mcf per day (210,800 Dth per day) 
of additional 20,380 Dth per day of winter only capacity will also be 
made available. PG&E requests that the Commission issue a decision by 
August 1, 2001 to allow PG&E to place the looping portion of its 
proposed facilities in service in time for the 2001 winter heating 
season and the compression facilities in service in time for the 2002 
summer cooling season.
    To meet its proposed aggressive schedule, PG&E requests 
authorization to construct a 21-mile long, 42-inch-diameter loop of its 
existing mainline system in Kootenai County, Idaho and Spokane County, 
Washington, and to increase system compression by 97,500 HP (ISO) at 
five existing compressor stations (Stations 4, 6, 8, 10 and 12) in 
Bonner County, Idaho; Spokane County, Washington; Walla Walla County, 
Washington; Sherman County, Oregon; and Deschutes County, Oregon, 
respectively (referred to herein as ``Expansion Project''). The 
additional compression will add approximately 169,000 Dth per day of 
annual capacity to the pipeline and the additional compression will add 
approximately 169,000 Dth per day of annual capacity to the pipeline 
and the additional looping will add approximately 42,000 Dth per day of 
annual capacity.
    PG&E proposes to construct approximately 21 miles of 42-inch-
diameter pipeline looping, beginning at MP 87.4 near PG&E's existing 
Compressor Station 5 near Athol, Idaho and ending at MP 108.4 near 
PG&E's existing MLV 5-2 near East Farms, Washington. A total of 19.4 
miles of pipeline will be constructed in Idaho and 1.6 miles of 
pipeline will be constructed in Washington. The proposed pipeline loop 
will be within the 100-foot permanent right-of way (``ROW'') of the 
existing mainline system and will be installed parallel to and 20 feet 
east of existing Pipeline B. The proposed pipeline loop will be tied-in 
to the mainline system at Compressor Station 5 (MP 87.6) and at 
existing MLV 5-2 (MP 108.3).
    PG&E indicates it held an open season extending from January 2 
through February 15, 2001, to solicit interest in its proposed 
expansion of approximately 200,000 Mcf per day of capacity to be made 
available no later than November 1, 2002. PG&E states prospective 
shippers submitted bids for more than 2 Bcf/day of long-term, firm 
capacity at maximum rates, most of whom indicated that they would 
prefer an earlier in-service date, if possible. PG&E explains that at 
the close of the open-season period, it executed binding precedent 
agreements, one for 175,000 Dth per day of capacity for 52 years and 
another for the remaining 35,800 Dth per day of capacity for 40 years.
    PG&E states that the Expansion Project is well-timed to bring 
needed gas supplies to California and the Pacific Northwest. PG&E notes 
that the two winning bidders of the expansion capacity, Newport 
Northwest, LLC and Calpine Energy Corporation, will utilize this 
capacity to deliver the natural gas required to fuel their new gas-
fired electric generating plants located in the Pacific Northwest and 
California. The addition of natural gas transportation capacity will 
facilitate the introduction of new power supplies into those regions, 
which PG&E maintains will help alleviate the current energy crisis.
    PG&E indicates it will provide the new services on an open-access 
basis under its Part 284 open-access blanket transportation certificate 
and pursuant to its FERC Gas Tariff, First Revised Volume No. 1-A. PG&E 
proposes to charge its generally applicable Part 284 rates for service 
rendered through the proposed facilities. In addition, consistent with 
PG&E's previous expansion, PG&E proposes to charge its Competitive 
Equalization Surcharge (``CES''). This surcharge is designed to ensure 
that all shippers participating in recent expansions pay equivalent 
rates for services. PG&E asserts that all CES revenue received will be 
refunded to shippers through PG&E's existing CES refund methodology as 
set forth in paragraph 35 of the General Terms and conditions of PG&E's 
FERC Gas Tariff, First Revised Volume No. 1-A.
    PG&E's proposed $121.6 million expansion will increase PG&E's 
annual cost of service by approximately $20.5 million, an increase of 
approximately 9.9 percent over the cost of service underlying PG&E's 
general system rates. PG&E maintain that rolling the cost of the 
Expansion Project in with PG&E's general system costs would result in a 
decrease in PG&E's general system rates of approximately 0.19 percent. 
Thus, PG&E requests an advance determination that the costs of the 
Expansion Project may be rolled into PG&E's systemwide rates in PG&E's 
next general NGA Sec. 4 rate case.
    PG&E states that the additional compression may affect PG&E's fuel 
costs which are recovered through a separate tracking mechanism. When 
the initial looping proposed is place into service, there will be a 
downward pressure on PG&E's fuel rate; however, when the new 
compressors are placed into service, PG&E concedes there could be an 
increase in fuel usage as a result of increased fuel needs to operate 
the new compressors. PG&E explains that whether the systemwide cost of 
fuel would increase would depend on many factors including total 
pipeline volumes, which would increase, and load factors, receipt and 
delivery point path, and the price of fuel. In addition, PG&E states 
that the new compressors are more fuel efficient and have lower 
emissions than the existing compressors and will generally be used 
prior to the older compressors.
    PG&E states that the expansion will not have any adverse impact on 
existing pipelines and their captive customers. It is noted that both 
entities subscribing to the proposed capacity are developing new 
electric generation that is not served by any existing pipeline 
facility. PG&E asserts the impact on landowners and other stakeholders 
will be minimal also since all of the station construction for this 
Expansion Project will take place on PG&E's existing compressor station 
property, or in the case of one station, on federal land under existing 
permits. The limited amount of pipeline looping, it is indicated, will 
be entirely in PG&E's existing right of way (ROW) and acquisition of 
additional land rights will be minimal.
    Any questions regarding the application should be directed to John 
Roscher, Director, Rate & Regulatory Affairs, PG&E Transmission, 
Northwest

[[Page 18620]]

Corporation, 1400 SW Fifth Avenue, Suite 900, Portland, Oregon 97201, 
(503) 833-4254.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before April 25, 2001, file 
with the Federal Energy Regulatory Commission, Washington, DC 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. 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. Comments and protests may be filed electronically 
in lieu of paper. See 18 CFR 385.2001(a)(1)(iii) and the instructions 
on the Commission's website at http://ferc.fed.us/efl/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 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 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 necessary for East Tennessee to appear or to be represented 
at the hearing.

David P. Boergers,
Secretary.
[FR Doc. 01-8772 Filed 4-9-01; 8:45 am]
BILLING CODE 6717-01-M