[Federal Register Volume 62, Number 66 (Monday, April 7, 1997)]
[Notices]
[Pages 16564-16565]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8752]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. RP97-300-000]


Granite State Gas Transmission, Inc.; Notice of Filing Tariff 
Sheets

April 1, 1997.
    Take notice that on March 27, 1997, Granite State Gas Transmission, 
Inc. (Granite State) tendered for filing with the Commission the 
original and revised tariff sheets listed below in its FERC Gas Tariff, 
Third Revised Volume No. 1, for effectiveness on April 1, 1997:

Original Sheet No. 333, 334 and 335

First Revised Sheet No. 200
First Revised Sheet Nos. 336-339

    According to Granite State, Original Sheet Nos. 333, 334 and 335 
add a new article to the General Terms and Conditions of its tariff to 
establish a tracking methodology to pass through to its firm 
transportation customers certain electric power costs for which Granite 
State is obligated to compensate Portland Pipe Line Corporation 
(Portland Pipe Line). Granite State leases an 18-inch pipeline from 
Portland Pipe Line; the line extends from a connection with Granite 
State's pipeline system near Portland, Maine, to the U.S.-Canadian 
border. Granite State further states that, until an alternate delivery 
system is available, the leased pipeline provides significant and 
indispensable transportation capacity

[[Page 16565]]

for the receipt and delivery of Canadian gas supplies for Bay State Gas 
Company and Northern Utilities, Inc.
    According to Granite State, Portland Pipe Line initially 
constructed and operated the 18-inch line and a parallel 24-inch 
pipeline from South Portland, Maine, to refineries in the vicinity of 
Montreal, Quebec, to provide an overland crude oil transportation 
system for the delivery of off-shore crude to the refineries. It is 
stated that the 18-inch line was idled in 1986 because the capacity in 
the 24-inch pipeline at that time was sufficient to supply the 
refineries. Granite State leased the 18-inch pipeline with the purpose 
of converting the 166-miles of the line from Portland to the U.S.-
Canadian border to natural gas service, and operating the pipeline to 
import Canadian gas supplies for its system and its customers. 
According to Granite State, the Commission issued a limited-term 
certificate to Granite State, extending to March 31, 1996, to operate 
the leased pipeline because Portland Pipe Line had reserved an option 
to terminate the lease as of that date.
    After Portland Pipe Line gave notice of its intent to terminate the 
lease on March 31, 1996, Granite State and Portland Pipe Line 
negotiated an extension of the lease to March 31, 1997 and the 
Commission extended the limited-term certificate to that date. In the 
negotiation of the extension (the First Amendment) it was recognized 
that the crude oil throughput on the 24-inch line could increase during 
the lease extension period. According to Granite State, the pumps on 
the 24-inch line are electric powered and power consumption increases 
with throughput and power usage on the 24-inch operating singly is 
greater than transporting the same volume through both the 18-inch and 
24-inch lines.
    In the First Amendment extending the lease, Granite State agreed to 
compensate Portland Pipe Line for increased power usage for the 
electric pumps on the 24-inch pipeline when throughput increased above 
a base level of an average of 177,000 barrels daily.
    Granite State further states that it is currently operating the 
leased pipeline on a further extension of the lease under a Second 
Amendment and an extension of the limited-term certificate to April 30, 
1998. The electric power compensation provision for increased usage of 
power by the pumps in the 24-inch line has been incorporated in the 
Second Amendment, according to Granite State, and Granite State is 
currently being invoiced for such costs.
    Because of the monthly variable in power usage, Granite State 
proposes in Original Sheet Nos. 333, 334 and 335 to establish a Power 
Cost Adjustment tracking mechanism, beginning April 1, 1997 and 
changing quarterly, based on projected electric costs provided by 
Portland Pipe Line. The tracking mechanism would be used to derive a 
surcharge per Dth applied to the reservation billing determinants for 
firm transportation services under Granite State's Rate Schedules FT-NN 
and FT-1. The first proposed quarterly surcharge, beginning April 1, 
1997, is $0.1737 per Dth shown in materials submitted with the tariff 
filing. The tracking mechanism would establish deferred accounts for 
over and under collections in relation to invoiced costs from Portland 
Pipe Line. Carrying charges would be applied to the deferred account 
balances, either over or under invoiced costs and the account balances 
would be reconciled semi-annually.
    Granite State also states that it filed a rate increase on October 
1, 1996 in Docket No. RP97-8-000 which was accepted by the Commission 
and suspended until April 1, 1997. According to Granite State it filed 
its proposed Power Cost Adjustment tracking procedure as pro forma 
tariff sheets in the Docket No. RP97-8-000 which the Commission noted 
in the suspension order with the observation that the mechanism could 
be considered as part of the resolution of that proceeding. Granite 
State further states that it has moved to put the suspended rates in 
Docket No. RP97-8-000 into effect on April 1, 1997.
    According to Granite State, copies of its filing was served on its 
firm and interruptible customers, the regulatory agencies of the States 
of Maine, Massachusetts and New Hampshire and the parties on the 
official service list maintained by the Secretary in Docket No. RP97-8-
000.
    Any person desiring to intervene or protest said filing should file 
a motion to intervene or protest with the Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, in accordance 
with Rules 211 and 214 of the Commission's Rules of Practice and 
Procedure. All such motions or protests must be filed in accordance 
with 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 Granite State's filing are on file with the 
Commission and are available for public inspection.
Lois D. Cashell,
Secretary.
[FR Doc. 97-8752 Filed 4-4-97; 8:45 am]
BILLING CODE 6717-01-M