55796 Federal Register / Vol. 62, No. 208 / Tuesday, October 28, 1997 / Notices

24 Indeed, even Midwest Power’s request for a

declaratory order was dismissed, as Midwest

Power’s depreciation rate change for accounting

purposes was effective prior to Midwest Power and

was based on sound depreciation accounting

practices. 70 FERC at 61,793.

25See, e.g., American Municipal Power-Ohio,

Inc., et al., 57 FERC ¶ 61,358 at 62,161 & n.5 (1991),

reh’g denied, 58 FERC ¶ 61,182 (1992). For power

marketers or other entities that only sell at marketbased rates, the Commission does not prescribe

depreciation rates for accounting purposes. Indeed,

the Commission’s accounting requirements under

Part 101 of its regulations are typically waived for

such entities. See, e.g., PEC Energy Marketing, Inc.

79 FERC ¶ 61,329 at 62,433 (1997). Accordingly,

those entities would not need to submit any filings

pursuant to section 302 of the FPA.

26See 79 FERC at 61,794 n.8.

27See supra note 15 and accompanying text.

28Arkansas Power & Light Co. v. FPC, 185 F.2d

751, 752 (D.C. Cir. 1950), cert. denied, 341 U.S. 909

91951); accord, H.R. Rep. No. 74–1318, at 30–31

(1935); S. Rep. No. 74–621, at 53 (1935).

1These are the Commission’s Optional Certificate

procedures. In the alternative, North Atlantic seeks

the same natural gas facilities construction and

operation certificate under Part 157, Subpart A of

the Commission’s Regulations. North Atlantic filed

executed Letters of Interests with 6 shippers for

269,000 MMBtu per day of capacity.

the Code of Federal Regulations or by

invoking its general legislative authority

under Part II of the FPA. Finally, the

May 15 order does not constitute an

amendment of a prior legislative rule.

We conclude, therefore, that the May 15

order is an interpretative rule.

Moreover, in this regard, the May 15

order did not set a depreciation rate for

accounting purposes for Southern (or

any public utility or licensee).24 It

merely reminded all public utilities and

licensees of the need to obtain

Commission authorization for changes

in their depreciation rates for

accounting purposes.

We also are not persuaded by

Southern’s arguments that changes in

the electric utility industry somehow

warrant allowing entities not to comply

with the requirement that we approve

their depreciation rates for accounting

purposes. While Southern suggests that

the movement to market-based power

sales rates warrants our relieving public

utilities and licensees of the

requirement that they file, the fact is

that there yet remain many cost-based

power sales rates, as well as cost-based

transmission rates, that reflect the

companies’ depreciation rates.25

Nevertheless, we have strived to comply

with out statutory responsibilities in the

least burdensome, and the most

expeditious, manner possible. Our

intent is not to unduly burden the

industry, but to fulfill our statutory

responsibilities. Thus, we have allowed

an amnesty period until the end of the

year for these filings. Additionally, we

allow these filings to be made under

Rule 204 of the Commission’s Rules of

Practice and Procedure, 18 CFR

§ 285.204 (1996), which does not require

payment of a filing fee. We also expect

that the vast majority of these filings can

be processed expeditiously by the Office

of the Chief Accountant.26

Finally, we disagree with Southern’s

contention that this Commission should

regulate depreciation accounting

practices of jurisdictional public

utilities only to the extent that the

underlying capital is dedicated to

jurisdictional service. The

Commission’s authority to prescribe a

uniform system of accounts and to

require a public utility to keep accounts

accordingly is not open to doubt.27 If a

state desires a utility to keep a separate

set of books for retail ratemaking

purposes, however, the state is free to

direct the utility to do so.28

The Commission orders

(A) Southern’s motion to intervene

out of time is hereby granted, as

discussed in the body of this order.

(B) Southern’s request for rehearing is

hereby denied, as discussed in the body

of this order.

(C) The Secretary shall promptly

publish a copy of this order in the

Federal Register.

(D) The Secretary shall promptly

serve copies of this order on all State

commissions, as defined in section 3(15)

of the Federal Power Act.

By the Commission.

Lois D. Cashell,

Secretary.

[FR Doc. 97–28540 Filed 10–27–97; 8:45 am]

BILLING CODE 6717–01–M

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

[Docket Nos. CP98–29–000, CP98–30–000,

CP98–31–000, and CP98–32–000]

North Atlantic Pipeline Partners, L.P.;

Notice of Applications for Certificates

of Public Convenience and Necessity,

and for a Presidential Permit and

Section 3 Authorization

October 22, 1997.

Take notice that on October 15, 1997,

North Atlantic Pipeline Partners, L.P.

(North Atlantic), 7500 Texas Commerce

Tower, 600 Travis, Houston, Texas

77002, filed applications pursuant to

Sections 3 and 7(c) of the Natural Gas

Act (NGA). In Docket No. CP98–29–000,

North Atlantic seeks a Presidential

Permit and Section 3 authorization

pursuant to Part 153 of the

Commission’s Regulations. In Docket

No. CP98–30–000, North Atlantic seeks

a Certificate of Public Convenience And

Necessity to construct and operate

natural gas pipeline facilities under Part

157, Subpart E of the Commission’s

Regulations.1 In Docket No. CP98–31–

000, North Atlantic seeks a Certificate of

Public Convenience And Necessity for

the transportation of natural gas under

Part 284, Subpart G of the Commission’s

Reglations. Finally, in Docket No. CP98–

32–000, North Atlantic seeks a

Certificate of Public Convenience And

Necessity for certain blanket

construction and operation

authorization under Part 157, Subpart F

of the Commission’s Regulations. North

Atlantic’s proposal is more fully set

forth in the applications which are on

file with the Commission and open to

public inspection.

North Atlantic is a limited

partnership formed under the laws of

the State of Delaware. North Atlantic’s

general partner is North Atlantic

Pipeline Company, L.L.C., a Delaware

limited liability company, and North

Atlantic’s limited partner is Tatham

Offshore, Inc. North Atlantic anticipates

admitting additional limited partners.

In Docket No. CP98–30–000, North

Atlantic wants authority to construct,

own, operate and maintain about 190

miles of 42-inch diameter pipeline

under Section 7(c) of the NGA and the

Commission’s optional certificate

procedure under Part 157, Subpart E of

the Commission’s Regulations. The

pipeline will extend from the United

States-Canada International Boundary in

the Gulf of Maine to a proposed point

of interconnection in East Kingston,

New Hampshire with the Joint Pipeline

currently authorized to be owned by

Maritimes & Northeast Pipeline, L.L.C.

and Portland Natural Gas Tranmission

System. About 179 miles of the pipeline

will be offshore and about 11 miles will

be onshore. The total estimated cost of

the United States portion of the project

is $472 million. (The Canadian portion

of the project will initially go from

Country Harbor, Nova Scotia to the

United States-Canadian Boundary.)

North Atlantic says the initial design

capacity of the pipeline is 590,000 Mcf

per day or 615,370 dekatherms per day,

which is currently limited due to

pressure limitations on interconnecting

upstream and downstream facilities; but

ultimately, as upstream offshore

Atlantic Canada gas fields are further

developed, North Atlantic’s facilities

will have the capacity to deliver up to

2,200,000 Mcf of natural gas per day on

a firm basis. North Atlantic says that its

project will meet a growing demand for
Federal Register / Vol. 62, No. 208 / Tuesday, October 28, 1997 / Notices 55797

natural gas in the northeastern United

States and will provide an

environmentally-sound means of

assessing the significant reserves of

natural gas in offshore Atlantic Canada.

North Atlantic seeks approval of its

initial rates and pro forma tariff

provisions. North Atlantic proposes to

offer a single rate schedule for firm

transportation service, Rate Schedule

FT–1, and to have the authority to

negotiate, on a non-discriminatory basis,

with shippers to charge rates for firm

service that deviate from the FT–1

maximum rate of $12.2761, which is a

cost-of-service based rate, designed

under the straight-fixed variable (SFV)

method and based on the design

capacity of the pipeline. Rates for

authorized overrun and unauthorized

overrun service are also stated in North

Atlantic’s pro forma tariff.

North Atlantic has used a capital

structure of 50 percent debt, 50 percent

equity, an after-tax rate of return on

equity of 13.25 percent and cost of debt

of 7.5 percent. The initial overall aftertax rate of return under this

methodology us 10.38 percent. North

Atlantic has also designed its maximum

cost-of-service FT–1 rate based on a 25-

year plant life using straight-line

depreciation.

In additional to the firm rate

schedules described above, North

Atlantic will offer interruptible service

under Rate Schedule IT–1 at a rate of

40.36 cents per dekatherm, which is the

100 percent load factor equivalent of the

maximum FT–1 rate. North Atlantic has

allocated $1 million to its IT–1 service

and, therefore, North Atlantic proposes

to retain its Rate Schedule IT–1

revenues.

North Atlantic also proposes to

negotiate, on a non-discriminatory basis,

rates that differ from North Atlantic’s

generally applicable rate schedules.

North Atlantic’s negotiated rates may be

less than, equal to, or greater than its

cost-based maximum rates and may also

be designed on a basis other than SFV.

Pursuant to the Commission’s

Alternative Ratemaking Policy

Statement, shippers unable to negotiate

a satisfactory agreement are provided an

option to elect the recourse rate, the

maximum rate described above.

North Atlantic offers to cap the firm

service rate for a long-term commitment

made through the close of its open

season. North Atlantic intends to

negotiate with interested shippers on a

non-discriminatory basis to develop

agreements pursuant to which rates will

automatically decrease as throughput

increases over time, as an inducement to

the efficient development of the vast

resources to be accessed by North

Atlantic.

North Atlantic’s pro forma Tariff also

includes the General Terms and

Conditions (GT&C) for all transportation

services, designed to meet the

applicable requirements of Order No.

636, as well as standards recommended

by the Gas Industry Standards Board

and accepted by the Commission. North

Atlantic’s GT&C also include a lateral

construction policy which it says is

consistent with the Commission’s

Pricing Policy For New And Existing

Facilities Constructed By Interstate

Natural Gas Pipelines.

In addition, in Docket No. CP98–29–

000, North Atlantic seeks authority to

construct, own, operate and maintain

250 feet of 42-inch diameter pipeline at

the United States-Canadian Boundary

under Section 3 of the NGA and

Executive Order No. 10485. At the

Boundary, the pipeline will connect

with North Atlantic’s upstream

Canadian affiliate. North Atlantic also

seeks Blanket Certificates under Section

7(c) of the NGA pursuant to Part 284,

Supart G and Part 157, Supbart F., in

Docket Nos. CP98–31–000 and CP98–

32–000, respectively, to transport

natural gas for others, and perform

certain routine construction functions.

Finally, North Atlantic requests a

preliminary determination with respect

to non-environmental issue by March 1,

1998, and a final certificate by

December 1, 1998. North Atlantic has a

November 1, 1999, target date for being

in service.

Any person desiring to be heard or

making any protest with reference to

said application should on or before

November 12, 1997, file with the

Federal Energy Regulatory Commission,

888 First Street, NE, 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 take 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 person to

whom the protests are directed. Any

person wishing to become a party to a

proceeding or to participating 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 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.

However, a person, company or

organization does not have to intervene

in order to have comments on any

aspect of the proposal considered by the

Commission. Instead, such entity may

submit two copies of such comments to

the Secretary of the Commission.

Commenters who are concerned about

environmental or pipeline routing

issues 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 the 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 3, 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 these

applications 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
55798 Federal Register / Vol. 62, No. 208 / Tuesday, October 28, 1997 / Notices

unnecessary for North Atlantic to

appear or be represented at the hearing.

Lois D. Cashell,

Secretary.

[FR Doc. 97–28455 Filed 10–27–97; 8:45 am]

BILLING CODE 6717–01–M

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

[Docket Nos. ER96–399–000; EL96–35–001]

Northern Indiana Public Service

Company and Wabash Valley Power

Association, Inc. v. Northern Indiana

Public Service Company; Notice of

Filing

October 22, 1997.

Please take notice that on August 6,

1997, Northern Indiana Public Service

Company (Northern Indiana) filed its

refund report in the above captioned

case.

Copies of the refund report have been

served on all parties and on the Indiana

Utility Regulatory Commission.

Any person desiring to be heard or to

protest said filing should file a motion

to intervene or protest with the Federal

Energy Regulatory Commission, 888

First Street, N.E., Washington, D.C.

20426, in accordance with the Rules 211

and 214 of the Commission’s Rules of

Practice and Procedure (18 CFR 385.211

and 18 CFR 385.214). All such motions

and protests should be filed on or before

November 3, 1997. 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.

Lois D. Cashell,

Secretary.

[FR Doc. 97–28457 Filed 10–27–97; 8:45 am]

BILLING CODE 6717–01–M

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

[Docket No. EC98–7–000]

Phibro Inc.; Notice of Application for

Authorization Under Federal Power Act

Section 203

October 22, 1997.

Take notice that on October 21, 1997,

Phibro Inc. (Phibro), tendered for filing

a request that the Commission approve

a disposition of facilities and/or grant

any other authorization the Commission

may deem to be needed under Section

203 of the Federal Power Act as a result

of the forthcoming acquisition of

Salomon Inc (Salomon), Phibro’s parent,

by Travelers Group Inc., (Travelers). As

explained in the application, the

planned acquisition will have no effect

on the jurisdictional facilities, rates or

services of Phibro and will be consistent

with the public interest.

Phibro requests expeditious action on

the application in order that there be no

delay in the acquisition of Salomon by

Travelers.

Any person desiring to be heard or to

protest said filing should file a motion

to intervene or protest with the Federal

Energy Regulatory Commission, 888

First Street, N.E., Washington, D.C.

20426, in accordance with Rules 211

and 214 of the Commission’s Rules of

Practice and Procedure (18 CFR 385.211

and 385.214). All such motions or

protests should be filed on or before

November 21, 1997. Protests will be

considered by the Commission 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

must file a motion to intervene. Copies

of this filing are on file with the

Commission and are available for public

inspection.

Lois D. Cashell,

Secretary.

[FR Doc. 97–28539 Filed 10–27–97; 8:45 am]

BILLING CODE 6717–01–M

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

[Docket No. CP98–39–000]

Tennessee Gas Pipeline Company;

Notice of Application

October 22, 1997.

Take notice that on October 20, 1997,

Tennessee Gas Pipeline Company

(Tennessee), 1001 Louisiana, Houston,

Texas 77002, filed an application

pursuant to Section 7 of the Natural Gas

Act (NGA) and Part 157 of the

Commission’s Regulations thereunder

for a certificate of public convenience

and necessity authorizing the

construction and operation of certain

natural gas facilities and an order

granting permission and approval to

abandon the facilities being replaced, all

as more fully set forth in the application

on file with the Commission and open

to public inspection.

Specifically, Tennessee requests that

the Commission issue an order

authorizing Tennessee to (1) abandon

four 26-inch diameter pipelines which

are fastened to the bridge for Highway

82 (Highway 82 Bridge) which crosses

the Mississippi River near Greenville,

Mississippi; (2) construct, own, and

operate one 30-inch diameter pipeline;

and (3) reconfigure six existing

pipelines near the Mississippi River.

Tennessee states that its requests are

necessitated by the State of Mississippi

Highway Department’s (MDOT) plans to

build a new bridge and remove the

Highway 82 Bridge. Tennessee requests

that the Commission grant the requested

authorization by March 16, 1998.

Tennessee states that the proposed

abandonment and construction are

necessary to maintain the integrity of

Tennessee’s mainline transmission

system and to enable Tennessee to

continue to provide uninterrupted

service for shippers. Tennessee states

that the estimated cost for abandoning

the segments of pipeline and

constructing the proposed segments of

pipeline will be approximately

$12,337,000.

Any person desiring to participate in

the hearing process or to make any

protest with reference to said

application should on or before

November 12, 1997, file with the

Federal Energy Regulatory Commission,

888 First Street, 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 take 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