Total Peaking Services, L.L.C.; Notice of Application

[Federal Register Volume 61, Number 133 (Wednesday, July 10, 1996)]
[Notices]
[Pages 36363-36364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17511]


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DEPARTMENT OF ENERGY
[Docket No. CP96-339-000]


Total Peaking Services, L.L.C.; Notice of Application

July 3, 1996.
    Take notice that on April 22, 1996, as supplemented on June 24, 
1996, and July 1, 1996, Total Peaking Services, L.L.C. (TPS), 5400 
Westheimer Court, P.O. Box 1642, Houston, Texas 77251-1642, filed in 
Docket No. CP96-339-000 an application pursuant to Section 7(c) of the 
Natural Gas Act for a certificate of public convenience and necessity 
authorizing TPS to employ and operate in interstate commerce an 
existing LNG peak-shaving facility located in Milford, Connecticut 
presently used by Southern Connecticut Gas Company (Southern 
Connecticut) for its Connecticut operations, for the purpose of making 
sales, with pregranted abandonment, of gas revaporized at the plant 
pursuant to the blanket certificate issued under Part 284, Subpart L of 
the Commission's regulations, at negotiated rates for resale and for 
sale to end-use customers, including sales to Southern Connecticut to 
replace the volumes which Southern Connecticut has in the past made 
available to itself from the Milford LNG plant, all as more fully set 
forth in the application which is on file with the Commission and open 
to public inspection.
    TPS indicates that it is a limited liability company whose members 
are CNE Energy Services Group, Inc. (CNE), a wholly-owned subsidiary of 
Connecticut Energy Corporation and an affiliate of Southern Connecticut 
and PanEnergy Plus Milford Ventures Company (PEPMV), a wholly-owned 
subsidiary of EnergyPlus Ventures Company, which in turn is a wholly-
owned subsidiary of PanEnergy Corp. TPS indicates that initially CNE 
would hold a 95 percent membership interest and PEPMV would hold a 5 
percent membership interest. It is stated that, upon receipt of all 
regulatory authorizations, PEPMV will acquire an additional 44 percent 
interest from CNE in accordance with the terms of the TPS Limited 
Liability Company Agreement.
    TPS states that its proposal is designed to satisfy the growing 
demand for peaking gas in the Northeast, where, it is indicated, gas 
consumers need reliable gas supplies to meet their needs on the coldest 
winter days. It is stated that, by virtue of the Milford LNG Plant's 
location within the Northeast consumption area, and through access to 
the Northeast's elaborate pipeline grid, TPS states that its customers 
will be able to purchase gas from TPS on peak days and receive it 
virtually instantaneously.
    Specifically, TPS states that, upon receipt of the requested 
authorizations and other necessary state regulatory approvals, TPS will 
acquire a leasehold interest in the Milford LNG Plant from CNE and will 
employ and operate the Milford LNG Plant for the purpose of receiving, 
liquefying, storing for TPS' benefit, regasifying, and selling pursuant 
to a Part 284, Subpart L blanket certificate quantities of natural gas, 
to be purchased and owned by TPS, on a winter peak day basis to 
customers in the northeastern region of the United States, at 
negotiated rates. According to TPS, the Milford LNG Plant will be 
operated by Southern Connecticut on behalf of TPS. It is further stated 
that base gas purchases as well as sales of revaporized gas will be 
arranged on behalf of TPS by PanEnergy Trading and Market Services, 
Inc., an affiliate of PEPMV, as agent for TPS. Further, it is stated 
that Southern Connecticut has capacity on certain third party 
pipelines, and that Southern Connecticut will make sales of gas to TPS 
at points of delivery on such third party pipelines in order to enable 
TPS to make peak day sales and to optimize the use of the Milford LNG 
Plant. It is stated that TPS will sell to Southern Connecticut 
equivalent volumes from the Milford LNG Plant or at Southern 
Connecticut's gas stations.
    TPS states that there are four open-access interstate pipelines 
immediately approximate to the Milford LNG plant with the capacity of 
transporting peak gas from the Plant to customers throughout the 
region, and that the extensive pipeline grid that exists in the 
Northeast will enable consumers virtually anywhere in the region to 
purchase gas from TPS on peak days and receive it on a timely basis. 
TPS goes on to state that the pervasiveness of other LNG and gas 
storage facilities throughout the Northeast, the wide availability of 
alternate fuels, the intense competition between and among those many 
suppliers, and the fact that the sales or storage rates of most of 
those suppliers are subject to state utility regulatory jurisdiction, 
will ensure that the price of gas available from TPS will at all times 
be low enough to compete aggressively with those alternatives.
    By seeking the rights to charge competitive, negotiated rates for 
its sales of peaking gas, TPS states that it is willing to forego 
traditional cost of service rates designed to insure recovery of its 
costs. As a result, TPS states that it, and not its customers, will be 
at risk for any underrecovery of costs generated by these rates. Also, 
TPS states that as a new entrant in this market, it obviously will be 
required to price its services aggressively in order to attract 
customers from the many other alternatives available.
    TPS further states that it has designed the type of service--sales 
at negotiated rates--to meet the desire of the market for sales 
services, backed up by assets, and to more efficiently utilize the 
Milford LNG Plant given the integrally related replacement service for 
Southern Connecticut.
    TPS states that because, among other reasons, it proposes to use 
the Milford LNG Plant for its own benefit and does not propose to 
perform any transportation or storage services for third parties, the 
sales service it proposes is the equivalent in all respects of sales 
being made currently by other similarly situated marketers at 
negotiated, market-based rates under automatic blanket certificates 
issued pursuant to Order No. 547 (III FERC Stats and Refs, Preamble 
para. 30,957).
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before July 24, 1996, file 
with the Federal Energy Regulatory Commission, 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 the jurisdiction conferred upon the Federal Energy 
Regulatory Commission

[[Page 36364]]

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 unnecessary for TPS to appear or be represented at the 
hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 96-17511 Filed 7-9-96; 8:45 am]
BILLING CODE 6717-01-M