In a draft order the FERC approved Northwest Pipeline’s mainlineexpansion plans in the Columbia River Gorge area of WashingtonState. The expansion will add 10,870 horsepower of compression atthree existing stations, increasing mainline capacity by 50,000Dth/d between the Stanfield, OR, meter station, where Northwestinterconnects with PG&E Gas Transmission-Northwest, andNorthwest’s interconnect with Sumas International Pipeline (SIPI)near Sumas, WA. (Dockets CP98-554-000 and CP98-554-001)

Northwest said it needs to expand to accommodate a request byDuke Energy Trading and Marketing for 50,000 Dth/d of additionalcapacity through its Columbia Gorge pipeline. Duke plans to delivergas from Alberta to BC Gas Utility, which is affiliated with SIPI,under a seasonal delivery contract approved by the British ColumbiaUtilities Commission.

The project cost is estimated at $18.57 million, including alump-sum reimbursement to PG&E Gas Transmission Northwest formodifications it will need to make to meter equipment. Duke willcompensate Northwest for the incremental cost-of-serviceattributable to the additional facilities through a facilitiescharge that adjusts annually to recover each year’s cost ofservice. The Commission said in Northwest’s next general NGASection 4 proceeding it will address the use of facility charges inthe context of existing and new customers’ rates, the use of bothrolled-in and incremental-plus rate designs for system expansionson the same system, and Northwest’s potential market power tocommand prices exceeding cost-based rates as the result of thepipeline’s existing postage stamp rate design.

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