[Federal Register: March 27, 1998 (Volume 63, Number 59)]
[Notices]               
[Page 14913-14915]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27mr98-67]

-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. CP98-285-000]

 
Northwest Pipeline Corporation; Notice of Application

March 23, 1998.
    Take notice that on March 18, 1998, Northwest Pipeline Corporation

[[Page 14914]]

(Northwest), 295 Chipeta Way, Salt Lake City, Utah 84158, filed an 
application pursuant to Sections 7 (b) and (c) of the Natural Gas Act 
and Part 157 of the Commission's Regulations for amendments to existing 
certificates of public convenience and necessity, permission and 
approval for abandonments and approval of various tariff waivers and 
modifications as necessary to implement changes in its use of storage 
for system balancing and its provision of storage from the Jackson 
Prairie Storage Project (Jackson Prairie), in which it is a one-third 
owner, all as more fully set forth in the application which is on file 
with the Commission and open to public inspection.
    Northwest states that the proposed changes generally are related to 
and/or consistent with proposals by Puget Sound Energy, Inc. (Puget 
Sound), the Project Operator of Jackson Prairie, to implement an 
updated and amended Gas Storage Agreement (Update Project Agreement) 
and expand the storage project.
    Concurrently with the implementation of the Updated Project 
Agreement proposed by Puget Sound, which is anticipated to occur in the 
fall of 1998, Northwest proposes to:
    (1) Abandon the certificated services provided under Rate Schedule 
SGS-1 and X-82 for the two-thirds of the Jackson Prairie capacity owned 
by Puget Sound and The Washington Water Power Company. (Each owner 
henceforth will have direct access to its one-third ownership share of 
storage rights in Jackson Prairie.)
    (2) Abandon the certificated Rate Schedule SGS-1 services from 
Northwest's one-third ownership share of storage rights in Jackson 
Prairie. (Each SGS-1 customer has elected to convert to open-access 
service under Rate Schedule SGS-2F.) Northwest also requests waivers of 
the posting/billing provisions in Section 25 of the General Terms and 
Conditions in its FERC tariff to the extent necessary to effectuate 
these conversions.
    (3) Increase total firm deliverability by 2,200 Dth per day (Dth/d) 
and total firm working gas capacity by 60,400 Dth available for 
Northwest's storage services from its one-third ownership share in the 
storage project. (These increased storage quantities result from 
utilization of an updated thermal conversion factor for the existing 
volumetric capacities of the storage project.) Northwest specifically 
requests waivers of the available capacity posting provisions in 
Sections 17.4(c) and 26 of the General Terms and Conditions in its FERC 
tariff to allow these available storage quantities to be allocated pro 
rata among Northwest's existing firm storage customers, as reflected in 
the new Rate Schedule SGS-2F service agreements replacing existing 
service agreements for both converting Rate Schedule SGS-1 customers 
and existing Rate Schedule SGS-2F customers.
    (4) Utilize for system balancing all firm, best-efforts and 
interruptible rights to which Northwest is entitled under the Updated 
Project Agreement, to the extent such rights are not being used to 
provide firm service under Rate Schedule SGS-2F. (This clarification of 
existing certificate authority ensures that Northwest's existing 
balancing flexibility will be maintained.)
    (5) Abandon its certificate for operation of the Jackson Prairie 
meter station. (Northwest henceforth will operate the meter station as 
agent for and under the certificate authority of Puget Sound, the 
project operator.)
    (6) Implement the related tariff changes necessary to: cancel Rate 
Schedules X-82 and SGS-1; enhance the best-efforts withdrawal rights 
under Rate Schedule SGS-2F; clarify and revise the scheduling and 
curtailment priorities for Northwest's use of its storage service 
rights under the Updated Project Agreement; clarify and enhance 
availability of interruptible service under Rate Schedule SGS-2I; 
explicitly define injection capacity rights under Rate Schedule SGS-2F; 
and update and revise the provisions of Rate Schedule TF-2 for storage 
redelivery transportation service.
    Upon completion of the Jackson Prairie expansion proposed by Puget 
Sound, which is anticipated to occur in the fall of 1999, Northwest 
proposes to:
    (1) Realign storage capacity authorized to be retained for system 
balancing by replacing 3.04 Bcf of its existing Clay Basin storage 
capacity and the associated 25.3 MMcf/d of firm deliverability with 
Northwest's share of the proposed Jackson Prairie expansion capacity, 
1.067 Bcf of storage capacity and the associated 100 MMcf/d firm 
deliverability;
    (2) Abandon, by sale, Northwest's certificated share of the Jackson 
Prairie Zone 2 cushion gas (0.73 Bcf) and Zone 9 testing gas (0.33 Bcf) 
which will be converted to working gas as a result of Puget Sound's 
proposed expansion;
    (3) Implement the related tariff changes necessary to: revise the 
fuel gas reimbursement procedures applicable to Northwest's share of 
the Jackson Prairie storage fuel and lost and unaccounted-for-gas; 
allow the sale of the cushion gas and testing gas proposed to be 
abandoned; and reflect the storage project's proposed new withdrawal 
deliverability formula in Rate Schedule SGS-2F.
    Further, Northwest requests the Commission to make a determination 
in this proceeding that Northwest's one-third share (approximately $10 
million) of the Jackson Prairie expansion costs should be treated on a 
rolled-in basis in Northwest's next general rate case. Northwest 
proposes to use its share of the expanded storage capacity for system 
balancing, which will provide system-wide operational benefits. 
Northwest contends that its cost-of-service attributable to the 
expansion will be more than offset by the associated reduction in Clay 
Basin storage expenses.
    Northwest also requests blanket authority to make periodic, short-
term (less than one year) adjustments in the quantity of Clay Basin 
storage capacity and associated injection and withdrawal rights which 
it retains for system balancing, as appropriate to accommodate by 
short-term changes in its operational balancing agreements.
    Any person desiring to be heard or to make any protest with 
reference to said amendment should on or before April 13, 1998, 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 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.
    Take further notice that, pursuant to the authority contained in 
and subject to 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 with further notice before the Commission or its designee on this 
application if no motion to intervene is filed within the time required 
herein, or if the Commission on its own review of the matter finds that 
permission and approval for the proposed certificate and abandonment 
are 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

[[Page 14915]]

required, further notice of such hearing will be duly given.
    Under the procedure herein provided for, unless otherwise advised, 
it will be unnecessary for Northwest to appear or be represented at the 
hearing.
David P. Boergers,
Acting Secretary.
[FR Doc. 98-8008 Filed 3-26-98; 8:45 am]
BILLING CODE 6717-01-M