Before Commissioners: Martin L. Allday, Chairman; Charles A. Trabandt, Elizabeth Anne Moler, Jerry J. Langdon and Branko Terzic. On February 28, 1991, Alabama-Tennessee Gas Company (Alabama Tennessee) filed a petition for waiver of section 284.223(a) of the Commission's regulations in the above docket. Section 284.223(a) provides interstate pipelines that have accepted a blanket certificate under section 284.221 of the Commission's regulations with automatic authorization to commence transportation service on behalf of any shipper for a term of 120 days. The 120-day term may be extended indefinitely if the transporting pipeline complies with the prior notice requirements of section 157.205 of the Commission's regulations. The prior notice requirement is satisfied if no protests are filed after issuance of notice by the Commission.2 Section 157.205(e) establishes a 45-day notice period for such protests. Alabama-Tennessee instituted transportation service pursuant to section 284.223(a) for EFP South Corporation on December 1, 1990, and filed a prior notice request for authorization to continue the service with the Commission on February 28, 1991. Due to the late filing of the prior notice request, the self-imple 118 C.F.R. § 284.223(b). menting transportation portion of this transaction will expire before the end of the 45-day comment period for the prior notice request. Therefore, Alabama-Tennessee requests that the Commission waive its regulations by extending the 120-day limit in section 284.223(a). Alabama-Tennessee states, "The delay in filing the prior notice application was due to administrative difficulties...." We find that the potential hardship inherent in interrupting the ongoing transportation service outweighs the potential benefit of strict adherence to the 120-day limitation in section 284.223(a)(1) of the regulations. The Commission orders: The 120-day limitation in section 284.223(a)(1) of the Commission's regulations is waived to the extent necessary to permit Alabama-Tennessee to continue the transportation activity described in its petition without interruption until 45 days after the date notice was issued in this proceeding in accordance with section 157.205 of the regulations. 2 18 C.F.R. § 157.205(a). [¶ 61,365] New England Power Company, Docket Nos. ER90-525-000 and ER90-526-000 Order Granting Motion to Collect Settlement Rates on an Interim Basis (Issued March 29, 1991) Before Commissioners: Martin L. Allday, Chairman; Charles A. Trabandt, On February 22, 1991, New England Power Company (New England) filed a motion requesting authorization for New England to collect proposed settlement rates on an interim basis, pending Commission action on a settlement agreement filed on February 22, 1991. 1 The settlement agreement, filed jointly by New England and the intervening parties, resolves all issues in this proceeding.2 New England requests permission, effective on April 1, 1991, to reduce the 1991 revenue increase associated with the W-12(a) rates to the level provided in the settlement agreement on an interim basis, pending Commission approval of the settlement. New England asserts that such a reduction would shorten the period during which the parties would be billed at the higher, filed rates. Also, New England claims that the collection of the reduced settlement rates would relieve New England from having to make large refunds if the settlement is accepted by the Commission. New England represents that the intervening parties that executed the settlement and the trial staff concur in this motion. If the Commission does not approve the settlement, New England states that it will automatically reinstate the currently effective W-12(a) rates, subject to refund, and will bill New England's customers for the amounts that would have been collected under the currently effective W-12(a) rates in the interim. While the motion does not expressly state so, we interpret the motion to provide that such surcharges would be with interest in accordance with 18 C.F.R. § 35.19a (1990); interest is necessary to place the parties in the position they would have occupied had New England continued to bill its customers at the filed rates. Given the concurrence of the affected customers, and in the absence of prejudice to any other party, we find good cause exists to grant the motion as ordered below. This action, however, is without prejudice to our subsequent determination on the merits of the proposed settlement. The Commission orders: Good cause having been shown, New England is hereby authorized, pursuant to section 35.1(e) of the Commission's regulations, to implement its proposed settlement rates on an interim basis, subject to refund, effective April 1, 1991, until the date of final Commission action on the proposed settlement, as discussed in the body of this order. In the event that the proposed settlement agreement is not approved, the provisions of the motion, as discussed in the body of this order, shall apply with respect to the reinstatement of New England's otherwise effective rates. [¶ 61,366] Carnegie Natural Gas Company, Docket No. TQ91-6-63-000 1 The settlement agreement is jointly executed by New England, the Attorney General of Rhode Island and the Rhode Island Division of Public Utilities and Carriers, the Department of the Army, Green Mountain Power Corporation, and the Towns of Merrimac and Groveland, Massachusetts. The Massachusetts Department of Public Utilities and the New Hampshire Public Utilities Commission, by counsel, advised New England that neither will contest the offer of settlement. Counsel for the Town of Norwood, Massachusetts advised New England on February 22, 1991, that Norwood supports the settlement; on March 8, 1991, based upon formal approval at a Town meeting, counsel for Norwood forwarded Norwood's signed copy of the settlement agreement. On March 22, 1991, the presiding judge certified the uncontested settlement agreement to the Commission. 2 New England Power Company, 52 FERC ¶ 61,344, amended, 53 FERC ¶ 61,106, order denying reh'g, 53 FERC ¶ 61,268 (1990). (Issued March 29, 1991) By Direction of the Commission: Lois D. Cashell, Secretary. Reference: Fourth/Twelfth Revised Sheet Nos. 8 and 9 to FERC Gas Tariff, Second Revised Volume No. 1. On March 1, 1991, Carnegie Natural Gas Company (Carnegie) filed the referenced tariff sheets to implement an out-of-cycle purchased gas adjustment with a proposed effective date of March 2, 1991. Waiver of the notice requirements is granted and the subject tariff sheets are accepted effective March 2, 1991, subject to refund1 and subject to the outcome of the proceeding in Docket No. TQ91-3-63-001. The accepted tariff sheets implement a 62.7 per Dth current adjustment decrease in the commodity rate along with a 9.83 per Dth increase in the standby charge. Carnegie states the filing was necessitated by an unanticipated significant decrease in projected system sales for the month of March 1991 and a recent rate decrease implemented by Texas Eastern Transmission Corporation, Carnegie's pipeline supplier. Notices of intervention and unopposed timely filed motions to intervene are granted pursuant to the operation of Rule 214 of the Commission's Rules of Practice and Procedure (18 C.F.R. section 385.214). Any opposed or untimely filed motion to intervene is governed by the provisions of Rule 214. This acceptance for filing shall not be construed as a waiver of the requirements of section 7 of the Natural Gas Act, as amended; nor shall it be construed as constituting approval of the referenced filing or of any rate, charge, classification, or any rule, regulation, or practice affecting such rate or service contained in your tariff; nor shall such acceptance be deemed as recognition of any claimed contractual right or obligation associated therewith; and such acceptance is without prejudice to any findings or orders which have been or may hereafter be made by the Commission in any proceeding now pending or hereafter instituted by or against your company. [¶ 61,367] El Paso Natural Gas Company, Docket No. TM91-4-33-000 (Issued March 29, 1991) By Direction of the Commission: Lois D. Cashell, Secretary. Reference: See Enclosure for Tariff Sheet Listing. On March 1, 1991, El Paso Natural Gas Company (El Paso) filed the referenced tariff sheets reflecting a revision to the take-or-pay monthly direct charge and throughput surcharge. El Paso states the filing is made to reflect interest on the unrecovered balance of its buy-out and buy-down costs and is pursuant to sections 21.4(d)(iii) and 21.5(c)(iii) of its FERC Gas Tariff, Second Revised Volume No. 1. The tariff sheets listed in the Enclosure are accepted and suspended, effective April 1, 1991, subject to refund and the outcome of the issues in the technical conference in Docket No. RP90-81-000, as well as the outcome of the underlying proceedings including Docket Nos. RP88-44-000, RP88-184-000, RP89-132-000, RP89-230-000, and TM90-3-33-000; and the outcome of El Paso's filing in Docket No. RP91-26-000. Acceptance is also subject to Commission action on El RP90-81-000, 1 All costs collected by a quarterly or out-of-cycle PGA filing are subject to refund and review in the Paso's filing in Docket Nos. TQ91-3-33-000 and RP86-157-005 since the subject tariff sheets reflect the rate adjustments proposed therein. The Public Utilities Commission of the State of California filed a protest requesting the filing be suspended for one day, and made subject to refund, based upon the final outcome of related issues in El Paso's underlying dockets. The Commission has conditioned acceptance herein accordingly. The City of Willcox, Arizona and Arizona Electric Power Cooperative, Inc. filed a protest raising issues and allegations previously raised in Docket No. RP90-81-000, as well as allegations that the direct bill violates the filed rate doctrine. The Commission has addressed these issues in its order issued March 16, 1990, wherein a technical conference was also convened. See 50 FERC 61,359 (1990). These issues will not be further discussed in this filing, but will be addressed in that underlying proceeding. As to the filed rate doctrine issue, El Paso has been granted a deferral of the succeeding annual PGA. (Order No. 483, FERC Statutes and Regulations ¶ 30,778, at p. 30,875.) Order No. 528 [53 FERC 61,163] stay until 30 days after a Commission order on the global settlement in Docket No. RP88-44-000 et al. See 53 FERC ¶ 61,348, at p. 62,268. El Paso's instant semiannual interest adjustment filing contains no new buyout/buydown costs and is appropriate under El Paso's effective tariff and in accordance with the deferral of stay. Notices of intervention and unopposed timely filed motions to intervene are granted pursuant to the operation of Rule 214 of the Commission's Rules of Practice and Procedure (18 C.F.R. section 385.214). Any opposed or untimely filed motion to intervene is governed by the provisions of Rule 214. This acceptance for filing shall not be construed as a waiver of the requirements of section 7 of the Natural Gas Act, as amended, nor shall it be construed as constituting approval of the referenced filing or of any rate, charge, classification, or any rule, regulation, or practice affecting such rate or service contained in your tariff; nor shall such acceptance be deemed as recognition of any claimed contractual right or obligation associated therewith; and such acceptance is without prejudice to any findings or orders which have been or may hereafter be made by the Commission in any proceeding now pending or hereafter instituted by or against your company. Enclosure Second Revised Volume No. 1 8th Revised Sixth Revised Sheet No. 100 First Revised Volume No. 1-A Second Revised Third Revised Sheet Nos. 20 and 21 Third Revised Volume No. 2 8th Rev 66th Revised Sheet No. 1-D Original Volume No. 2A 8th Rev 68th Revised Sheet No. 1-C [¶ 61,368] Great Lakes Gas Transmission Company, Docket Nos. RP91-110-000 and Letter Order (Issued March 29, 1991) By Direction of the Commission: Lois D. Cashell, Secretary. On March 1 and 12, 1991, Great Lakes Gas Transmission Company (Great Lakes) filed tariff sheets reflecting that certain transportation customers will provide the company use gas needed by Great Lakes to transport gas volumes for such customers effective April 1, 1991. Waiver of the notice requirement in section 4(d) of the Natural Gas Act and section 154.22 of the Commission's regulations is granted and the tariff sheets listed on Appendix A are accepted to be effective on April 1, 1991.1 The tariff sheets also reflect that each customer or Great Lakes will be responsible to the other party for payment of any balances remaining in Great Lakes's subaccount of Account No. 191 related to that customer within 20 days after Great Lakes prepares a statement regarding the status of the subaccount through March 31, 1991. Accordingly, Great Lakes should include a final report in its next annual PGA filing or, if no annual PGA moot. 1 Fourth Revised Sheet No. 295 is rejected as filing is made, make a final report by September 1, 1991. The report should show the amounts disbursed to or received from each customer, together with workpapers showing the calculation of each balance, and the date payment was received or made. Notices of intervention and unopposed timely filed motions to intervene are granted pursuant to the operation of Rule 214 of the Commission's Rules of Practice and Procedure. 18 C.F.R. § 385.214 (1990). Any opposed or untimely filed motion to intervene is governed by the provisions of Rule 214. This acceptance for filing shall not be construed as a waiver of the requirements of section 7 of the Natural Gas Act, as amended; nor shall it be construed as constituting approval of the referenced filing or of any rate, charge, classification, or any rule, regulation, or practice affecting such rate or service contained in your tariff; nor shall such acceptance be deemed as associated therewith; and such acceptance is without prejudice to any findings or orders which have been or may hereafter be made by the Commission in any proceeding now pending or hereafter instituted by or against your company. Appendix A Great Lakes Gas Transmission Company First Revised Volume No. 1 Twenty-Second Revised Sheet No. 57(v) Great Lakes Gas Transmission Company Original Volume No. 2 Substitute Fourth Revised Sheet No. 295 Fourth Revised Sheet No. 437 Midwestern Gas Transmission Company, Docket Nos. TA91-1-5-000 and -001 Letter Order (Issued March 29, 1991) By Direction of the Commission: Lois D. Cashell, Secretary. Reference: (1) Twenty-third Revised Sheet No. 5, and Eighteenth Revised Sheet No. 6 to FERC Gas Tariff, First Revised Volume No. 1; (2) Sub Twenty-third Revised Sheet No. 5, Sub Eighteenth Revised Sheet No. 6, Fourth Revised Sheet No. 46, and Third Revised Sheet No. 55 to FERC Gas Tariff, First Revised Volume No. 1. On January 31, 1991, Midwestern Gas Transmission Corporation (Midwestern) filed the tariff sheets referenced in Item: (1) to implement its annual purchased gas adjustment (PGA) filing. On March 1, 1991, Midwestern filed the tariff sheets referenced in Item (2) to update its current adjustment and to reflect revised "Fuel Retention Factors" associated with rendering transportation service pursuant to Rate Schedules FT and IT. The Commission grants waiver of its notice requirements and accepts and suspends the tariff sheets referenced in Item (2), effective April 1, 1991, subject to refund and to the conditions set forth below. The tariff sheets referenced in Item (1) are rejected as moot. Midwestern is reminded it is required to file 60 days before the proposed effective date of an annual PGA filing or it must request waiver of the notice requirements. Midwestern's estimated cost of purchased gas for the three-month period beginning April 1, 1991, may not be a realistic projection based on known and measurable factors. The Commission notes in its annual (and quarterly) PGA filings during the last year Midwestern projected purchasing high levels of gas from Tennessee Gas Pipeline Company (Tennessee) and then frequently filed interim PGA filings (sometimes to be effective on the same date as quarterly filings) to lower its gas costs based on an anticipated large reduction in its purchases from Tennessee and significant purchases of lower cost spot gas. Under the regulations, a pipeline must estimate its purchased gas costs for the succeeding quarter. The rates for nonpipeline purchases may be adjusted for "known and measurable changes." Pipelines |