TEAM 2014 Project Texas Eastern Transmission, LP FERC Section 7(b) and 7(c) Application and Public Exhibits, Except F-1 FERC Docket No. CP13-___-000 Volume I “PUBLIC” February 2013 5400 Westheimer Court Houston, TX 77056-5310 Mailing Address: P.O. Box 1642 Houston, TX 77251-1642 713.627.5400 main February 27, 2013 Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C. 20426 Re: Texas Eastern Transmission, LP, Docket No. CP13-___-000 Abbreviated Application for a Certificate of Public Convenience and Necessity and for Related Authorizations and Order Approving Abandonment Dear Ms. Bose: Texas Eastern Transmission, LP (“Texas Eastern”) hereby submits for filing with the Federal Energy Regulatory Commission (“Commission”) an Abbreviated Application for a Certificate of Public Convenience and Necessity and for Related Authorizations and Order Approving Abandonment (“Application”) regarding its proposed Texas Eastern Appalachia to Market Project 2014 (“TEAM 2014 Project” or “Project”). The TEAM 2014 Project is a production-driven project designed to provide the pipeline capacity necessary to deliver production from the emerging Marcellus Shale play to diverse markets in the Northeast, Midwest, Southeast and Gulf Coast. The Project responds to significant interest from Marcellus Shale producers who require firm pipeline capacity as their production comes on line. The Project involves modifications of Texas Eastern’s existing facilities in Pennsylvania, West Virginia, Ohio, Kentucky, Tennessee, Alabama, and Mississippi. Included herewith are four volumes. Volume I contains public information and is comprised of the Application and its public exhibits, except Exhibits F-I and Z-4. Volume II contains the public version of Exhibit F-I and Exhibit Z-4. Volume III contains privileged and confidential information and is comprised of Appendix F (landowner and stakeholder lists), Appendix J (cultural resource survey reports), Exhibit I (confidential market data), and electronic versions of the hydraulic models supporting Exhibit G. Volume IV contains Critical Energy Infrastructure Information (“CEII”) and is comprised of Appendix B (plot plans), Exhibits G, GI, G-II, and Exhibit Z-3. Pursuant to the Commission’s guidelines for eFiling,1 Texas Eastern is hereby eFiling the Application and will provide two complete copies of the Application to OEP Room 62-46 and one complete copy to OGC-EP Room 101-66. Volume IV is marked “CONTAINS CRITICAL ENERGY INFRASTRUCTURE INFORMATION—DO NOT RELEASE”2 and should be treated as confidential pursuant to Order No. 630, et seq. and is for use by the Commission Staff 1 Federal Energy Regulatory Commission Filing Guide/Qualified Documents List (January 2, 2013). 2 18 C.F.R. §§ 388.112(b), 388.113 (2012). Ms. Kimberly D. Bose, Secretary February 27, 2013 Page 2 only and not to be released to the public.3 Volume III is marked “CONTAINS PRIVILEGED INFORMATION—DO NOT RELEASE.”4 Privileged information should be treated as confidential and is for use by Commission Staff only and not to be released to the public. Questions pertaining to confidential information may be submitted to: Marcy F. Collins Associate General Counsel Texas Eastern Transmission, LP P.O. Box 1642 Houston, Texas 77251-1642 Phone: (713) 627-6137 Fax: (713) 989-3191 Email: mfcollins@spectraenergy.com The hydraulic models contain both CEII and PRIVILEGED AND CONFIDENTIAL information. Texas Eastern notes that the Commission’s eFiling system does not include the ability to designate files as both CEII and privileged and confidential. Accordingly, Texas Eastern is marking these hydraulic model files as privileged and confidential for eFiling purposes, but Texas Eastern requests both CEII and privileged and confidential treatment for the files. In accordance with Rule 2011(c)(5) of the Commission’s Rules of Practice and Procedure, 18 C.F.R. § 385.2011(c)(5), I hereby state that I have read the hard copy version of the filing and am familiar with the contents thereof; that the paper copies contain the same information as the electronic media; and that all of the statements contained therein are true and correct, to the best of my knowledge, information and belief. 3 Critical Energy Infrastructure Information, Order No. 630, FERC Stats & Regs Regulations Preambles ¶ 31,140 (2003), 68 Fed. Reg. 9857 (Mar. 3, 2003), order on reh’g, Order No. 630-A, 104 FERC ¶ 61,106 (2003), 68 Fed. Reg. 46456 (Aug. 6, 2003). 4 18 C.F.R. §§ 380.12, 388.112 (2012). UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Texas Eastern Transmission, LP ) Docket No. CP13-____-000 ABBREVIATED APPLICATION OF TEXAS EASTERN TRANSMISSION, LP FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY AND FOR RELATED AUTHORIZATIONS AND ORDER APPROVING ABANDONMENT UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Texas Eastern Transmission, LP ) Docket No. CP13-____-000 ABBREVIATED APPLICATION OF TEXAS EASTERN TRANSMISSION, LP FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY AND FOR RELATED AUTHORIZATIONS AND ORDER APPROVING ABANDONMENT Pursuant to Sections 7(b) and 7(c) of the Natural Gas Act (“NGA”), as amended,1 and Part 157 of the regulations of the Federal Energy Regulatory Commission (“Commission”),2 Texas Eastern Transmission, LP (“Texas Eastern”) hereby files this abbreviated application for a certificate of public convenience and necessity and for related authorizations and order approving abandonment (“Application”) seeking Commission authorization to make the necessary facility modifications, as described herein, and enable Texas Eastern to provide service under the Texas Eastern Appalachia to Market 2014 Project (“TEAM 2014 Project” or “Project”). Texas Eastern initiated the pre-filing process for the TEAM 2014 Project in Docket No. PF12-19-000 and received approval from the Commission to use the prefiling process on July 13, 2012.3 The instant Application incorporates the comments and information received during the pre-filing process from Commission Staff and relevant stakeholders. 1 15 U.S.C. §§ 717f(b)-(c) (2012). 2 18 C.F.R. § 157.7 (2012). 3 Texas Eastern Transmission, LP, Approval of Pre-Filing Request, Docket No. PF12-19 (July 13, 2012). The TEAM 2014 Project is a production-driven project that will provide the capacity necessary for Texas Eastern to transport an additional 600,000 dekatherms per day (“Dth/d”) of natural gas from receipt points on the Texas Eastern system in the Marcellus Shale region in western Pennsylvania and West Virginia to delivery points in Texas Eastern’s traditional market areas in New Jersey and New York, as well as to expanding markets in Ohio, Mississippi and Louisiana. The Project is designed to provide 300,000 Dth/d of incremental transportation service from western Pennsylvania to the eastern end of the system in Lambertville, New Jersey and Staten Island, New York, 50,000 Dth/d of incremental transportation service from western Pennsylvania to the Lebanon, Ohio hub and 250,000 Dth/d of incremental transportation service from western Pennsylvania to markets in Texas Eastern’s Zones ELA and WLA in the Access Area. The facilities that are proposed as part of the Project are described in detail herein and involve pipeline looping and aboveground modifications located on various segments of the Texas Eastern system in Pennsylvania, West Virginia, Ohio, Kentucky, Tennessee, Alabama, and Mississippi, including approximately 33.6 miles of new 36-inch diameter pipeline loop and related aboveground facilities, compressor station upgrades and abandonments resulting in a net increase of 77,100 horsepower (“HP”) of compression, and certain other facility modifications to accommodate bi-directional flow along Texas Eastern’s system. Texas Eastern has executed precedent agreements with two shippers for long-term firm transportation service for the full 600,000 Dth/d of Project capacity. These two shippers are major producers in the Marcellus Shale play and require the firm capacity to be created by the Project to ensure that pipeline capacity exists to transport their 2 production to growing markets as the production comes on line. Texas Eastern is proposing to charge initial incremental recourse rates for service on the TEAM 2014 Project facilities under Rate Schedule FT-1. These recourse rates and the support for the derivation of these rates are set forth in Exhibit P to the Application. The TEAM 2014 Project shippers have agreed to pay negotiated rates in accordance with the terms of the executed precedent agreements and Section 29 of Texas Eastern’s General Terms and Conditions (“GT&C”).4 Texas Eastern requests that the Commission grant the authorizations requested herein on or before November 21, 2013, in order for Texas Eastern to have the time necessary to complete and place into service the facilities proposed herein by November 1, 2014. Texas Eastern has agreed pursuant to the terms of its Precedent Agreements with the Project shippers to proceed with due diligence to complete and place the Project facilities into service by November 1, 2014, which, in turn, will ensure that pipeline capacity exists to transport the Project shippers’ production to growing markets as that production comes on line. In support hereof, Texas Eastern shows as follows: I. Identity of Applicant The exact legal name of Texas Eastern is Texas Eastern Transmission, LP. Texas Eastern is a limited partnership organized and existing under the laws of the State of Delaware and has its principal place of business at 5400 Westheimer Court, Houston, Texas 77056-5310. Texas Eastern is an indirect, wholly owned subsidiary of Spectra Energy Transmission, LLC. 4 Texas Eastern will file the applicable negotiated rate tariff records for approval within 30 to 60 days prior to the in-service date of the TEAM 2014 Project. 3 Texas Eastern is a natural gas company as defined in the NGA, engaged in transmission of natural gas in interstate commerce, subject to the jurisdiction of the Commission. Texas Eastern’s transmission system extends from Texas, Louisiana and the Gulf of Mexico, through the states of Mississippi, Arkansas, Missouri, Tennessee, Illinois, Indiana, Kentucky, Ohio, Pennsylvania and New Jersey, to its principal terminus in the New York City metropolitan area. The names, titles and mailing addresses of the persons to whom correspondence and communications concerning this Application should be addressed are: *Berk Donaldson Director, Rates and Certificates Austin C. Isensee Analyst, Rates and Certificates Texas Eastern Transmission, LP P.O. Box 1642 Houston, Texas 77251-1642 Phone: (713) 627-4488 Fax: (713) 627-5947 Email: bdonaldson@spectraenergy.com *Marcy F. Collins Associate General Counsel Texas Eastern Transmission, LP P.O. Box 1642 Houston, Texas 77251-1642 Phone: (713) 627-6137 Fax: (713) 989-3191 Email: mfcollins@spectraenergy.com and *James D. Seegers James E. Olson Sabina D. Walia Suzanne E. Clevenger Vinson & Elkins L.L.P. 1001 Fannin, Suite 2500 Houston, Texas 77002 Phone: (713) 758-2939 Fax: (713) 615-5206 Email: jseegers@velaw.com * Texas Eastern requests that these persons be included on the Commission’s official service list. 4 II. Description of Project A. Overview of Project The TEAM 2014 Project is an efficient and cost-effective means for providing additional capacity to satisfy the need of the Project shippers to have pipeline capacity available to transport the shippers’ production to growing markets as that production comes on line. The Project facilities are designed to transport this new production to the traditional Northeastern market area and to expanding markets in the Midwest, Southeast and Gulf Coast. The Project will deliver supplies of Marcellus Shale gas from certain Texas Eastern interconnections in Greene County, Pennsylvania, Fayette County, Pennsylvania and Marshall County, West Virginia to delivery points along Texas Eastern’s system at Lambertville, New Jersey and Staten Island, New York, and to delivery points in other market areas along the system in Lebanon, Ohio, Copiah County, Mississippi and Acadia Parish, Louisiana. The TEAM 2014 Project will improve the flexibility and reliability of service on the Texas Eastern system and the overall pipeline grid. The Project will have no adverse impact on Texas Eastern’s existing customers or on existing pipelines and their captive customers. As demonstrated by the Resource Reports accompanying this Application, the construction and operation of the TEAM 2014 Project will not involve any significant environmental or landowner impacts that cannot be adequately mitigated. For these reasons, the benefits of the Project outweigh any potential adverse effects. Texas Eastern has executed precedent agreements with two Project shippers, Chevron U.S.A., Inc. (“Chevron”) and EQT Energy, LLC (“EQT”) for transportation service on the Project facilities totaling 600,000 Dth/d, the entire capacity to be created 5 by the Project facilities (“Precedent Agreements”). Chevron and EQT own significant natural gas production acreage in the Marcellus Shale region, and their respective firm service commitments are designed to provide the revenue support necessary for Texas Eastern to construct the firm pipeline capacity that will transport this production to markets along the Texas Eastern system. In addition to providing access to major natural gas markets for the Project shippers, the TEAM 2014 Project will also promote increased commodity price competition and reduce price volatility by introducing new supply sources from the Appalachian production area, particularly the prolific Marcellus Shale, to these market areas. The Project also provides supply access to developing markets in the Gulf Coast Region. Overall, the Project will improve transportation security, flexibility, and reliability on the Texas Eastern system. Pursuant to the Precedent Agreements, Texas Eastern has agreed, subject to certain conditions, to proceed with due diligence to construct the TEAM 2014 Project with a targeted in-service date of November 1, 2014, and to provide, collectively, 600,000 Dth/d of firm service to Chevron (300,000 Dth/d) and EQT (300,000 Dth/d) under firm service agreements with primary terms of 10 years. The Commission views agreements for long-term firm capacity as important evidence of market demand.5 These Precedent Agreements are included herewith as Exhibit I and have been submitted as privileged pursuant to Section 388.112 of the Commission’s regulations. 5 Agreements for long-term firm capacity are important evidence of market demand for a new project. Certification of New Interstate Natural Gas Pipeline Facilities, 88 FERC ¶ 61,227, at p. 61,744 (1999) (“Certificate Policy Statement”), order clarifying Statement of Policy, 90 FERC ¶ 61,128 (2000), order further clarifying Statement of Policy, 92 FERC ¶ 61,094 (2000). 6 B. Description of Facilities By this Application, Texas Eastern proposes to construct pipeline looping and aboveground modifications located on various segments of the Texas Eastern system in Pennsylvania, West Virginia, Ohio, Kentucky, Tennessee, Alabama, and Mississippi, including approximately 33.6 miles of new 36-inch diameter pipeline loop and related aboveground facilities, compressor station upgrades and abandonments resulting in a net increase of 77,100 HP of compression, and certain other facility modifications to accommodate bi-directional flow along Texas Eastern’s system. Specifically, the proposed pipeline facilities include the following: (i) 6.7 miles of new 36-inch pipeline loop in Fayette County, Pennsylvania, downstream of Texas Eastern’s existing Holbrook Compressor Station; (ii) 8.1 miles total of new 36-inch pipeline loop in two segments (a 2.7-mile segment and a 5.4-mile segment) in Perry County, Pennsylvania, downstream of Texas Eastern’s existing Perulack Compressor Station; (iii) 7.1 miles of new 36-inch pipeline loop in Dauphin County, Pennsylvania, downstream of Texas Eastern’s existing Shermans Dale Compressor Station; (iv) 6.1 miles total of new 36-inch pipeline loop in two segments (a 2.3-mile segment and a 3.8-mile segment) in Lebanon County, Pennsylvania, downstream of Texas Eastern’s existing Grantville Compressor Station; and (v) 5.6 miles of new 36-inch pipeline loop in Berks County, Pennsylvania, downstream of Texas Eastern’s existing Bernville Compressor Station in Berks County, Pennsylvania; The compressor station modifications include the following: (i) uprate of one existing 16,000 HP electric unit to 20,000 HP (by removing the software restriction currently in place in order to allow the unit to operate at its full service factor) and uprate of two existing 12,250 HP units to 13,300 HP each (by exchanging existing engines for new engines capable of greater horsepower) at Texas Eastern’s existing Uniontown Compressor Station in Fayette County, Pennsylvania; 7 (ii) installation of one new 26,000 HP gas turbine compressor unit and one new 26,000 HP electric motor-driven compressor unit at Texas Eastern’s existing Delmont Compressor Station in Westmoreland County, Pennsylvania; (iii) abandonment in place of one existing 18,500 HP gas turbine compressor unit and six 1,100 HP reciprocating gas compressor units for a total abandonment of 25,100 HP at the Delmont Compressor Station in Westmoreland County, Pennsylvania; (iv) installation of one new 18,100 HP gas turbine compressor unit at Texas Eastern’s existing Armagh Compressor Station in Indiana County, Pennsylvania; (v) installation of one new 26,000 HP gas turbine compressor unit at Texas Eastern’s existing Entriken Compressor Station in Huntingdon County, Pennsylvania; and (vi) installation of associated facilities, such as aero assemblies and cooling equipment, on existing gas compressor units at the Delmont, Uniontown, Armagh, and Entriken Compressor Stations, as more fully described in Resource Report 1. The modifications at the compressor stations described above will result in a net increase in certificated horsepower at the stations of 77,100 HP. With this net increase in horsepower, the total certificated horsepower will be: 80,900 HP at the Uniontown Compressor Station; 73,300 HP at the Delmont Compressor Station; 40,100 HP at the Armagh Compressor Station; and 48,000 HP at the Entriken Compressor Station. Texas Eastern proposes to abandon in place the seven compressor units at the Delmont Compressor Station described above by cutting and capping the aboveground suction and discharge pipeline. abandonment. No ground disturbance will be associated with the Texas Eastern may, from time to time, use various parts from the abandoned compressor unit facilities as spare replacement parts for other facilities. Texas Eastern will achieve the uprate of the existing 16,000 HP electric-powered compressor unit at the Uniontown Compressor Station by modifying controls and other 8 ancillary facilities on the existing equipment, as described above, and no earth disturbance will take place as a result of this uprate. In addition to the facilities above, Texas Eastern is also proposing to install associated facilities, such as launchers, receivers, and valves to support the pipeline expansion, as well as minor modifications and maintenance work at 41 existing facility sites along Texas Eastern’s transmission system between Pennsylvania and Mississippi to allow for bi-directional flow on Texas Eastern’s system. All of the work associated with these minor modifications will occur entirely within existing compressor station, launcher and receiver, or meter and regulating facility sites along Texas Eastern’s existing right of way, with the exception of one location that will require additional workspace outside of the previously disturbed pipeline easement. These facilities and their locations are described in detail in Resource Report 1. Texas Eastern requests that the Commission grant the authorizations requested herein on or before November 21, 2013, in order for Texas Eastern to have the time necessary to complete and place into service the Project facilities by November 1, 2014. Texas Eastern has an obligation under the Precedent Agreements to proceed with due diligence to complete construction of the Project facilities and to place such facilities into service by November 1, 2014, which, in turn, will ensure that the pipeline capacity necessary to transport the Marcellus Shale production of Chevron and EQT will be available for growing markets as that production comes on line. Texas Eastern requests that the Commission grant any other authorizations and waivers necessary to implement the proposal contained herein. 9 III. Evaluation of Application Pursuant to Certificate Policy Statement The Commission established criteria for determining whether there is a need for a proposed project and whether the proposed project will serve the public interest in the Certificate Policy Statement.6 The Certificate Policy Statement explains that, in deciding whether to authorize the construction of major new pipeline facilities, the Commission balances the public benefits of the project against the project’s potential adverse consequences.7 The Commission’s stated goal is to give appropriate consideration to the enhancement of the competitive transportation alternatives, the possibility of overbuilding, subsidization by existing customers, the applicant’s responsibility for unsubscribed capacity, the avoidance of unnecessary disruptions of the environment, and the unneeded exercise of eminent domain in evaluating new pipeline construction.8 Once the applicant demonstrates that the benefits to be achieved by the project will outweigh the potential adverse effects, the Commission will find that the project is required by the public convenience and necessity.9 As demonstrated herein, the facilities proposed herein meet the criteria of the Certificate Policy Statement, and approval of the Project will serve the public interest and is required by the public convenience and necessity. A. The TEAM 2014 Project Meets the Threshold No-Subsidy Test. The TEAM 2014 Project satisfies the economic threshold requirement for existing pipelines because it avoids subsidization by Texas Eastern’s existing customers and does not adversely impact their rates. Specifically, Texas Eastern is proposing herein initial 6 Id. 7 Tennessee Gas Pipeline Co., 92 FERC ¶ 61,142, pp. 61,519-20 (2000). 8 Id. 9 Certificate Policy Statement at p. 61,746. 10 incremental recourse rates for service on the TEAM 2014 Project facilities. Because Texas Eastern is proposing herein to recover the costs associated with the TEAM 2014 Project facilities, through incremental rates, the TEAM 2014 Project is financially viable without any adverse rate effect on, or subsidies from, Texas Eastern’s existing customers. Accordingly, the TEAM 2014 Project meets the threshold requirement established by the Commission’s Certificate Policy Statement.10 While Texas Eastern is not seeking approval at this time to roll-in the costs of the Project, Texas Eastern reserves its right to do so in the future as part of a general rate case proceeding. B. The TEAM 2014 Project Will Have No Adverse Effects on Existing Customers or on Existing Pipelines and Their Captive Customers. The next step in the Certificate Policy Statement analysis is to identify potentially adverse effects of the project on the existing customers of the pipeline proposing the project, existing pipelines in the market and their captive customers, or landowners and communities affected by the new construction and to determine whether the applicant has made efforts to eliminate or minimize those adverse effects.11 If residual adverse effects on these groups are identified after efforts have been made to minimize them, the Commission will “evaluate the project by balancing the evidence of public benefits to be achieved against the residual adverse effects.”12 The TEAM 2014 Project will not be detrimental to Texas Eastern’s existing customers. The TEAM 2014 Project will result in no degradation of service to existing customers, and, as explained above, Texas Eastern has proposed incremental rates for the Project. Additionally, Texas Eastern’s proposal has benefits for existing and potential 10 Id. at p. 61,745. 11 Id. 12 Id. 11 shippers, as well as the Northeast, Midwest, Southeast, and Gulf Coast markets overall. The additional compression and market reach associated with the Project will benefit existing customers by increasing the reliability and flexibility of service on the Texas Eastern system. Furthermore, by transforming the segment of the Texas Eastern system from the Holbrook, Pennsylvania area to the Access Area in Mississippi and Louisiana into a bi-directional system, Texas Eastern’s existing shippers and markets south of Holbrook on the Texas Eastern system will have direct access to the emerging Marcellus Shale production area for the first time. The bi-directional nature of this segment of the system will also increase the efficiency of the system and enhance reliability of service on the system by diversifying supply sources that can be accessed by markets along the system. This additional access to new and abundant supply sources also will provide the markets along the system with a better ability to manage price volatility. Accordingly, the TEAM 2014 Project will not have an adverse effect on existing customers and, instead, will increase the overall strength, reliability, diversity, and flexibility on the pipeline grid in market areas along the system. The TEAM 2014 Project will have no adverse effect on existing pipelines in the region or their customers. The Project will provide incremental capacity to the Northeast, Midwest, Southeast and Gulf Coast regions to accommodate new supplies from the Marcellus Shale play. The Project is not designed to bypass an existing pipeline or to provide service that is already provided by another pipeline. Therefore, the Project serves incremental demand and offers new transportation capacity for new production as that production comes on line and will not have adverse effects on existing pipelines or their customers. The additional compression associated with the TEAM 2014 Project will increase the overall reliability of the interstate pipeline grid in the Northeast, 12 Midwest, Southeast and Gulf Coast regions, and the benefits associated with increasing reliability on the pipeline grid will accrue to customers of all pipelines comprising the grid. For the foregoing reasons, the TEAM 2014 Project will have no adverse effect on existing customers or existing pipelines and their customers. C. Texas Eastern Has and Continues to Minimize the Potential for Adverse Impacts on Landowners and Communities Affected by the TEAM 2014 Project. As demonstrated in the accompanying Resource Reports, Texas Eastern has made substantial efforts to ensure that the construction of the TEAM 2014 Project will have limited residual adverse impacts to landowners and the environment. To the extent practicable, Texas Eastern will construct the facilities utilizing existing rights-of-way and previously disturbed property, thereby limiting any new disturbances to the environment during construction. All of the compressor station modifications will be within the fence line of existing facilities, and the other aboveground modifications to associated facilities to support the expansion and to allow for bi-directional flow will take place within Texas Eastern’s existing right-of-way, with the exception of one location that will require additional workspace as noted in Resource Report 1. Aside from this one location that will require a new permanent access road within Texas Eastern’s property, no additional land use impacts will result from operation of these modified facilities. A portion of the Project consists of Texas Eastern’s replacement of older, less efficient compressor units with more efficient and, from an emissions standpoint, more environmentally-friendly units. Consistent with the Commission’s desire for early input by potential stakeholders and with the Commission’s endorsement of the use of collaborative procedures in developing new pipeline projects, since February 2012, Texas Eastern has made 13 significant efforts prior to and throughout the pre-filing process in Docket No. PF12-19, to inform the public, particularly affected landowners, relevant resource agencies, and other interested stakeholders about the TEAM 2014 Project. Texas Eastern will provide timely written notice of this Application and other required information to landowners that are directly affected by the Application, as well as to local communities and local, state, and federal governments and agencies involved in the TEAM 2014 Project in accordance with the Commission’s landowner notification requirements.13 The TEAM 2014 Project will have limited residual impact on landowners and communities affected by the Project. Texas Eastern will construct the TEAM 2014 Project utilizing proven construction techniques and mitigation procedures, and the Project will not result in significant impacts on the environment. The Resource Reports attached in Exhibit F-1 include a detailed explanation of the limited environmental impacts associated with the TEAM 2014 Project and the measures that Texas Eastern intends to take to mitigate any impacts. D. The Benefits of the TEAM 2014 Project Outweigh Potential Residual Adverse Effects. When determining whether a proposed project is needed and will serve the public interest, the Commission balances the public benefits to be achieved by the project against the residual impacts of the proposed project on the relevant interests listed above. Given Texas Eastern’s mitigation efforts, and the limited residual impacts on the relevant 13 See 18 C.F.R. § 157.6(d)(1)(i) (2012). In accordance with the Commission’s regulations, Texas Eastern will also publish notice of the Application in relevant daily and/or weekly newspapers of general circulation. See 18 C.F.R. § 157.6(d)(1)(iii) (2012). In addition, Texas Eastern will place a copy of the Application in the town or city hall and library of each municipality along the proposed route, thereby exceeding the Commission’s requirements. See 18 C.F.R. § 157.10(c) (2012). 14 interests listed above, the benefits of the TEAM 2014 Project far outweigh any potential adverse effects. The primary purpose of the TEAM 2014 Project is to provide new pipeline capacity for Marcellus Shale production currently under development to ensure that firm transportation service is available for the Project shippers to serve growing markets as their production comes on line. The Project offers a cost-effective and reliable transportation outlet for this new production. The ability for Texas Eastern to expand its system along its existing footprint helps to ensure that Texas Eastern can meet the target in-service date of November 1, 2014, and at the same time minimizes impacts to the environment. In addition, the TEAM 2014 Project will benefit system shippers and markets on the Texas Eastern system by providing additional access to reliable, long-term production from the emerging Marcellus Shale play to markets along and downstream of the system. The TEAM 2014 Project will increase diversity of supply, enhance the ability of markets along the system to better manage price volatility, and provide additional security and reliability to these markets. E. The TEAM 2014 Project Is Required by the Public Convenience and Necessity. The TEAM 2014 Project is consistent with the criteria of the Certificate Policy Statement, and the construction and operation of the facilities proposed herein are in the public interest and required by the public convenience and necessity. The TEAM 2014 Project will provide numerous benefits to the Project shippers, existing shippers and markets along the system and natural gas consumers, including: (i) providing a long-term, secure firm transportation outlet for the TEAM 2014 Project shippers as the shippers’ Marcellus Shale production comes on line; 15 (ii) providing the necessary new capacity to enable new supplies of natural gas from the Marcellus Shale to reach diverse regions and markets on the Texas Eastern system; (iii) providing existing and new markets with diverse supply that promotes stability and reliability and better management of price volatility; (iv) providing additional operational flexibility and reliability through the addition of new compression and pipe on Texas Eastern’s system; and (v) enhancing flexibility and reliability of service on the pipeline grid generally by increasing delivery options off the Texas Eastern system. For the foregoing reasons, Texas Eastern respectfully submits that granting the authorizations requested herein is required by the public convenience and necessity. Approval of the TEAM 2014 Project in the timing contemplated herein will benefit the Northeast, Midwest, Southeast and Gulf Coast regions along the Texas Eastern system by delivering new long-term sources of natural gas at the earliest possible time to these market areas. In summary, the TEAM 2014 Project satisfies the Commission’s Certificate Policy Statement and is consistent with the Commission’s economic and environmental goals. Texas Eastern will construct the Project with minimal landowner and environmental impacts. As described in detail in this Application and the accompanying exhibits, the TEAM 2014 Project significantly and substantially benefits the natural gas transmission grid in the Northeast, Midwest, Southeast and Gulf Coast regions and will provide the pipeline capacity necessary to transport the Project shippers’ developing Marcellus Shale production as that new production comes on line. The benefits of this Project far outweigh the potential residual impacts of the Project, which have been or will be mitigated through Texas Eastern’s efforts as described in this Application. Accordingly, the TEAM 2014 Project meets the standards of the Certificate Policy 16 Statement, is in the public interest, and is required by the public convenience and necessity. IV. Open Season/Reverse Open Season While Texas Eastern believes the information provided in this Application will show that it has met the tests both factually and legally to build the Project as proposed, Texas Eastern hereby provides the following summary of the Open Season and Reverse Open Season process for the TEAM 2014 Project. A. Open Season for the TEAM 2014 Project. Texas Eastern entered into a Precedent Agreement with Chevron in December 2011, and with EQT in January 2012, for transportation service on the Project facilities totaling 600,000 Dth/d, with a target in-service date of November 1, 2014. In compliance with Commission policy and precedent, Texas Eastern conducted a binding Open Season to determine whether additional demand existed for firm service as part of the TEAM 2014 Project. Texas Eastern held the Open Season from January 17, 2012 through February 17, 2012 requesting bids for up to an overall potential capacity of 1,400,000 Dth/d inclusive of the existing commitments from the Project shippers. The Open Season Notice described the design of the proposed project to accommodate a primary firm path for all Project shippers to be split, with 50 percent of the firm path to extend to the East and 50 percent of the firm path to extend to the West and South from the Appalachian supply region.14 After the conclusion of the Open Season, Texas Eastern determined to move forward with a project that was sized to accommodate the two Project shippers, as no 14 A copy of the Open Season Notice is included as part of Exhibit Z-1(a). 17 additional precedent agreements resulted from the Open Season. Texas Eastern then confirmed the design of the TEAM 2014 Project as an expansion of Texas Eastern’s Penn-Jersey system,15 taking into consideration the Project shippers’ requested timing and the fact that no receipt and delivery points had been requested on the Capacity Restoration Project (“CRP”) system,16 all as more fully described below. B. Reverse Open Season for the TEAM 2014 Project. Promptly following the execution of the Precedent Agreements and the Open Season, Texas Eastern held a Reverse Open Season in March 2012 to solicit turnback capacity. In the Reverse Open Season Notice,17 Texas Eastern offered its current firm shippers the opportunity to release, subject to specified criteria, all or a portion of their current firm transportation entitlements. The Reverse Open Season Notice made clear that the capacity that shippers wished to turn back must enable Texas Eastern to reduce the scope of the proposed incremental facilities, as finally scoped and designed, necessary to satisfy Texas Eastern’s obligations pursuant to the TEAM 2014 Project, while maintaining or improving the economics of the Project. Texas Eastern further specified that the shipper’s turnback capacity must result in available capacity on Texas Eastern’s facilities from receipt points on the Texas Eastern system to the proposed delivery points on the Texas Eastern system designated for the Team 2014 Project and must not result in a release of any capacity unnecessary for the Project.18 15 The Penn-Jersey system extends from the Oakford Storage facilities and Texas Eastern’s Delmont Compressor Station in western Pennsylvania to Texas Eastern’s Lambertville, New Jersey Compressor Station. 16 The CRP system extends from Texas Eastern’s Uniontown Compressor Station in western Pennsylvania to Texas Eastern’s Lambertville, New Jersey Compressor Station. 17 A copy of the Reverse Open Season Notice is included as Exhibit Z-1(b). 18 Texas Eastern’s reverse open season followed the Commission’s policy and precedent regarding reverse open seasons. See, e.g., PG&E Gas Transmission, 84 FERC ¶ 61,204, at 62,001 (1998) (finding that the 18 In response to the Reverse Open Season Notice, Texas Eastern received requests from a total of three current Texas Eastern shippers to turn back capacity under a total of six separate contracts. Texas Eastern has provided a diagram as Exhibit Z-1(c) that reflects the turnback requests that Texas Eastern received. ConocoPhillips Company (“ConocoPhillips”) was one of these three shippers and sought to turn back capacity under two agreements (Nos. 910662-R2 and 910882-R1).19 Both agreements are firm service agreements that ConocoPhillips executed for service on Texas Eastern’s TEMAX expansion, on a path that overlays the CRP system. As noted above, however, Texas Eastern designed the TEAM 2014 Project facilities to consist of an expansion of Texas Eastern’s Penn-Jersey system and not its CRP system, taking into consideration all of the shippers’ needs, including the timing required by the shippers (as discussed further below) and, again, the fact that neither of the Project shippers requested receipt or delivery points located on the CRP system. Texas Eastern evaluated each turnback request in conjunction with the other turnback requests to determine which portions of the paths offered for turnback, in combination with portions of the paths offered by other shippers for turnback, would result in the greatest decrease in the scope of Project construction and at the same time allow Texas Eastern to satisfy its contractual obligations with the TEAM 2014 Project shippers. No turnback request or combination of requests would have resulted in a reduction in the scope of the Project for deliveries to the south or west of the western pipeline did not have to accept turnback of capacity from Kingsgate, British Columbia (at the US-Canada border) to Malin, Oregon when the expansion only involved a shorter path from Kingsgate to Stanfield, Oregon); Columbia Gas Transmission Corp. and Texas Eastern Transmission Corp., 79 FERC ¶ 61,160 (1997) (noting that “[a] pipeline should not be required to take back its customers’ unrelated, unwanted capacity simply because it wants to construct new facilities somewhere else on its system”). 19 ConocoPhillips has disclosed in public filings with the Commission information about ConocoPhillips’ turnback proposal. Accordingly, Texas Eastern identifies ConocoPhillips in this Application but does not specifically identify the other two shippers that participated in the Reverse Open Season. 19 Pennsylvania receipt points. However, as detailed below, Texas Eastern was able to offer to accept in one case all of the capacity offered for turnback from one turnback shipper and portions of the capacity offered for turnback from the two other turnback shippers, including some of the capacity offered for turnback from ConocoPhillips. Texas Eastern has provided a diagram as Exhibit Z-1(d) that reflects the Project scope that would have resulted if all turnback shippers accepted Texas Eastern’s offer to take back their capacity. In considering the turnback requests, one turnback shipper offered capacity under three separate service agreements, including a turnback offer for 50,000 Dth/d that could satisfy the entire TEAM 2014 Project eastern contract path through to delivery points at Lambertville and Staten Island. This 50,000 Dth/d turnback offer presented the greatest volumetric reduction in facilities construction among all turnback requests received. Therefore, Texas Eastern accepted that entire path for the full quantity. A second turnback shipper offered 100,000 Dth/d for turnback on a path located entirely within the TEAM 2014 Project construction path. Accepting that quantity provided the second largest reduction in facilities construction for the Project. Therefore, Texas Eastern accepted that quantity in its entirety. After accepting the 150,000 Dth/d described above, Texas Eastern allocated the remaining 150,000 Dth/d (of the 300,000 Dth/d eastern expansion path) among the remaining requests – one request from ConocoPhillips was for turnback of 395,000 Dth/d while the other, from another shipper, was for 100,000 Dth/d. The remaining requests each included primary points of delivery only on Texas Eastern’s CRP system, not on or to the east of Texas Eastern’s Penn-Jersey system. Therefore, only a portion of the paths offered for turnback under these remaining requests – from Clarington to Uniontown 20 upstream of the split between the Penn-Jersey system and the CRP system – could result in any reduction in the scope of facilities construction. Texas Eastern determined that the turnback offers for these remaining agreements were similarly situated because the entire path available for turnback from these shippers was the same and resulted in an equivalent reduction of facilities construction. Therefore, it was necessary to pro-rate on a volumetric basis Texas Eastern’s proposed acceptance of the turnback quantity on this path between these two shippers. In doing the analysis, Texas Eastern capped ConocoPhillips’ 395,000 Dth/d request at 300,000 Dth/d to make it equivalent to the TEAM 2014 Project quantity in this path. The pro-ration of the remaining 150,000 Dth/d resulted in ConocoPhillips having the opportunity to turnback 112,500 Dth/d of its capacity. The result of the credit offered to shippers turning back capacity based upon the reduction of facilities contemplated to occur with the requested turnback capacity totaled approximately $11.1 million per year, which is approximately 13 percent of the annual cost of service for the proposed expansion of the Penn-Jersey system. The reverse open season provided shippers with more flexibility than is required or customary. Pursuant to the Reverse Open Season Notice, each of the three turnback shippers had five business days – until April 25, 2012 – to consider Texas Eastern’s offer to accept the turnback capacity. If a shipper did not agree to Texas Eastern’s offer by the deadline, the offer would expire and the shipper’s turnback request would be null and void. Two of the three shippers responded prior to the deadline that they had decided to retain their capacity. Upon inquiry from ConocoPhillips, Texas Eastern clarified that Reverse Open Season responses would not be finally binding on the shipper. Texas Eastern also was open to responding to shipper inquiries and requests for clarification. 21 Unlike the other two shippers, ConocoPhillips requested an extension of the deadline for responding to Texas Eastern’s turnback offer. While Texas Eastern was not obligated to do so, Texas Eastern agreed as an accommodation to ConocoPhillips to extend the deadline for all shippers until May 1, 2012. During this extension period, in response to questions from ConocoPhillips, Texas Eastern provided feedback and answers to ConocoPhillips’ questions regarding the TEAM 2014 Project and Texas Eastern’s rationale for selection of the Penn-Jersey system path for the Project, rather than the CRP system path preferred by ConocoPhillips. Texas Eastern explained to ConocoPhillips that, with the exception of the Clarington to Uniontown segment that Texas Eastern had agreed to accept in response to ConocoPhillips’ turnback offer, the capacity that ConocoPhillips was attempting to turn back was not on Texas Eastern’s intended construction path for the TEAM 2014 Project. In Texas Eastern’s last piece of correspondence to ConocoPhillips regarding the Reverse Open Season results, Texas Eastern informed ConocoPhillips that the revised May 1, 2012 response deadline had passed and that Texas Eastern would be moving forward with the TEAM 2014 Project based on the understanding that ConocoPhillips had decided not to turn back the 112,500 Dth/d of capacity from Clarington to Uniontown. C. Texas Eastern’s Reverse Open Season Complied with Commission Policy. Several months following the completion of the Reverse Open Season, ConocoPhillips filed a complaint against Texas Eastern in Docket No. RP13-128-000 on October 1, 2012 (“Complaint”). ConocoPhillips claimed that Texas Eastern should have held a reverse open season for a project other than the project that Texas Eastern has proposed to construct. ConocoPhillips argued that Texas Eastern’s Reverse Open Season discriminated against ConocoPhillips because Texas Eastern did not agree to take back 22 the entirety of ConocoPhillips’ firm capacity and construct a project different from the TEAM 2014 Project. ConocoPhillips argued that Texas Eastern should have accepted ConocoPhillips’ full turnback offer of 300,000 Dth/d and that then Texas Eastern could construct another project that would be less costly and have less environmental impacts. The Commission dismissed the complaint in an order dated October 26, 2012.20 ConocoPhillips filed comments in the TEAM 2014 pre-filing proceeding, Docket No. PF12-19-000, on November 2, 2012, which continue to argue that Texas Eastern should construct a project different than the proposed Project (“ConocoPhillips Comments”). Texas Eastern expects that ConocoPhillips will raise the same arguments in a protest to the Application. ConocoPhillips’ arguments about the Project, including the Open Season and Reverse Open Season, are without merit. ConocoPhillips’ argument rests on the claim that because the TEAM 2014 Project involves an expansion of Texas Eastern’s Penn-Jersey system rather than an expansion of Texas Eastern’s separate CRP system, ConocoPhillips was not able to turn back more of its capacity during the Reverse Open Season for the TEAM 2014 Project and therefore the Reverse Open Season discriminated against ConocoPhillips. However, Texas Eastern considered alternative expansions of the CRP system during the initial project development stages, but given the impacts to project cost and schedule, as described further below and in Resource Report 10, the alternatives utilizing Texas Eastern’s CRP system ceased to be a viable option for this Project early in the development process. The analysis by Texas Eastern of alternatives involving an expansion of the CRP system included scenarios with and without a river crossing, as set forth below. 20 ConocoPhillips’ request for rehearing of this order was subsequently denied. ConocoPhillips Co., 141 FERC ¶ 61,071 (2012), reh’g denied, 142 FERC ¶ 61,123 (2013). 23 Texas Eastern’s CRP alternative with river crossing: One alternative utilizing the CRP system instead of the Penn-Jersey system that Texas Eastern considered would require significant greenfield construction and a new crossing of the Delaware River. The flow diagram prepared by Texas Eastern in late 2011 to study this alternative (as depicted only downstream of the Marietta Compressor Station) is provided as the first diagram in Exhibit Z-3. Once Texas Eastern finalized the Precedent Agreements with the anchor shippers in December 2011 and January 2012, respectively, which targeted an inservice date of November 1, 2014, Texas Eastern had to rule out this alternative due to timing.21 While the estimated cost for this CRP alternative that involved the Delaware River crossing was nearly the same as the cost of constructing the Penn-Jersey system expansion, the increased permitting issues and schedule risk involved with the greenfield construction and the Delaware River crossing associated with a CRP expansion would not have allowed Texas Eastern to meet the November 1, 2014 in-service date for the Project. Texas Eastern’s CRP alternative without river crossing: To avoid the Delaware River crossing, Texas Eastern also studied an alternative downstream of the Marietta Compressor Station in late 2011 that would have avoided crossing the Delaware River by constructing a greenfield cross-over pipeline from the CRP system to the Penn-Jersey system at a point west of the Delaware River. The flow diagram prepared by Texas Eastern in late 2011 to study this alternative downstream of the Marietta Compressor 21 In the Open Season Notice, Texas Eastern suggested various delivery points in Zone M3, including a point off of the Marietta Extension, which is located on the CRP system. While Texas Eastern intended to expand the Penn-Jersey system as part of the Project, Texas Eastern also could have expanded the CRP system up to the Marietta Extension without crossing the Delaware River and, therefore, deliveries at or upstream of the Marietta Extension could have been possible by the November 1, 2014 target in-service date for the Project. Ultimately, however, no receipt or delivery points on the CRP system were requested as a result of the Open Season. 24 Station is provided as the second diagram in Exhibit Z-3. The cost estimate for this alternative that avoided the Delaware River crossing was approximately $95 million greater than the alternative utilizing the CRP system by crossing the Delaware River. Due to this significant additional cost, along with the potential scheduling risks related to the greenfield construction required for this alternative, Texas Eastern ruled out this alternative as well. D. The Commission Should Disregard ConocoPhillips’ GSC Study. 1. The Commission should not engage in an Ashbacker-style comparison between Texas Eastern’s Project and ConocoPhillips’ hypothetical project. ConocoPhillips included in the pre-filing docket a study prepared by Gas Supply Consulting, Inc. to support its contentions and its proposed alternative to the Project (“GSC Study”).22 The GSC Study contains a comparison between ConocoPhillips’ proposed CRP expansion, which does not require crossing the Delaware River, and the Penn-Jersey expansion that Texas Eastern has proposed herein. The GSC Study’s conclusions are incorrect because they are based on faulty assumptions, as explained further below in Section IV.D.2 and in Resource Report 10. However, there is another important point regarding the comparison contained in the GSC Study. The study almost entirely involves a comparison of costs for expansion investment and engineering matters and analyzes the two separate projects similar to the way potential shippers might review competing projects in the marketplace or in the way the Commission might have reviewed competing, mutually exclusive pipeline certificate applications decades ago under an Ashbacker analysis.23 The Commission has long abandoned Ashbacker-style 22 ConocoPhillips also included the GSC Study in its October 1, 2012 Complaint filing. 23 Ashbacker Radio Corp. v. FCC, 326 U.S. 327 (1945). 25 hearings where these kinds of comparisons of competing projects were analyzed at length,24 and, in any event, here, Texas Eastern has only proposed the Penn-Jersey expansion as part of the TEAM 2014 Project, not a CRP expansion. As previously discussed, Texas Eastern determined that an expansion of the Penn-Jersey system was preferable from a timing and risk standpoint and more closely-aligned with Texas Eastern’s business objectives and the needs of the Project shippers. Texas Eastern decided to proceed with a proposal for a project that includes an expansion of the PennJersey system and, contrary to ConocoPhillips’ desired outcome, Texas Eastern cannot be required to build any other project. ConocoPhillips’ arguments also reflect a fundamental misunderstanding of the Commission’s reverse open season policy and Commission and court precedent regarding the discretion that a pipeline company has under the NGA to design and propose projects that satisfy the pipeline’s business objectives. Texas Eastern was not required to design the TEAM 2014 Project based upon turnback offers or to accept back from ConocoPhillips capacity on a project that Texas Eastern had no intention of constructing. Prior Commission and court decisions have made it clear that pipelines would not be compelled to build a project different from the one the pipeline has determined to build.25 The Commission has stated that it “does not direct the development of the gas industry’s 24 See ANR Pipeline Co., 78 FERC ¶ 61,326 (1997), order denying reh’g, 85 FERC ¶ 61,056 (1998), aff’d, ANR Pipeline Co., v. FERC, 205 F.2d 403 (2000) (affirming the Commission’s reliance on market forces and holding that an Ashbacker comparative hearing was not required). 25 See Panhandle Eastern Pipe Line Co. v. FPC, 204 F.2d 675, 680 (3d Cir. 1953) (“Panhandle v. FPC”) (“Congress meant to leave the question whether to employ additional capital in the enlargement of its pipeline facilities to the unfettered judgment of the stockholders and directors of each natural gas company involved.”); see also Tennessee Gas Pipeline Co. v. Columbia Gulf Transmission Co., 113 FERC ¶ 61,200, at PP 25-30 (2005); El Paso Natural Gas Co., et al., 104 FERC ¶ 61,045, at P 104 n.104 (2003). 26 infrastructure, neither on a broad regional basis nor in the design of specific projects.”26 Instead, the Commission “respond[s] when an application is presented to [the Commission], and in each application the parameters of the project are predetermined by the applicant.”27 Similarly, the Commission has pointed out that “[w]ith limited exceptions, the Commission has no authority to compel companies to construct gas facilities,”28 and courts have also made it clear that, except in very limited circumstances,29 the Commission has no authority under the NGA to order a pipeline company to construct additional capacity.30 Here, Texas Eastern has proposed facilities to create the additional capacity for the TEAM 2014 Project by expanding the Penn-Jersey system in concert with the timeline required by the Project shippers, not the CRP system. As the Commission has explained, Texas Eastern has the right to determine the project that it will propose to construct to the Commission. The Commission will not direct the design of the project, 26 Texas Eastern Transmission, LP, et al., 141 FERC ¶ 61,043 at P 25 (2012) (“Texas Eastern”); see also Millennium Pipeline Company, L.L.C., 141 FERC ¶ 61,198 at PP 43-45 (2012). 27 Texas Eastern, 141 FERC ¶ 61,043 at P 25 (emphasis added). 28 Id. at P 28. The Commission noted that the limited exceptions include its ability, under certain circumstances, to require open-access transporters to construct interconnections, to direct natural gas companies to extend facilities to serve a municipality or LDC, and to direct existing pipelines to expand offshore pipeline capacity. None of these limited exceptions apply here. 29 These circumstances involve limited directives under Section 7(a) of the NGA to extend facilities to serve a municipality or LDC. 30 See Panhandle v. FPC, 204 F.2d at 680 (“Congress meant to leave the question whether to employ additional capital in the enlargement of its pipeline facilities to the unfettered judgment of the stockholders and directors of each natural gas company involved.”); see also Tennessee Gas Pipeline Co. v. Columbia Gulf Transmission Co., 113 FERC ¶ 61,200, at PP 25-30 (2005); El Paso Natural Gas Co., et al., 104 FERC ¶ 61,045, at P 104 n.104 (2003); In re Panhandle Eastern Pipe Line Co., et al., 15 FPC 46 (1956) (citing Panhandle v. FPC and stating that “[a]s the court’s language establishes, there is a sphere wherein, under the [NGA], the judgment of the stockholders and directors of the company has free exercise, and the investment capital for the purpose of enlarging pipeline facilities comes within that sphere. We can deny the proposed construction of facilities but except to the limited extent [NGA Section 7(a)] permits, we cannot require a company to risk its capital in a venture which in the exercise of its officers’ judgment, it considers unwise to undertake.”). 27 and the Commission does not have the authority to compel Texas Eastern to construct an expansion of the CRP system or any other different project. 2. The conclusions in the GSC Study are incorrect. The Commission should disregard the GSC study because it is predicated on an expansion path that Texas Eastern ruled out more than one year ago as not viable for the TEAM 2014 Project. Texas Eastern has explained the shortcomings of the GSC Study in Resource Report 10 in response to data requests from FERC Staff. Texas Eastern provides a summary of its Resource Report 10 analysis here. In response to Texas Eastern’s concerns regarding scheduling risks for crossing the Delaware River, the alternative project that the GSC Study attempts to support involves a greenfield connecting pipeline from a point downstream of Texas Eastern’s Eagle Compressor Station on the CRP system to a point on the Penn-Jersey system just west of the Delaware River (“Cross-over Pipeline”) in order to avoid crossing the Delaware River. Resource Report 10 details the critical engineering flaws associated with the alternative project, including that the study: (i) incorrectly assumes the PennJersey system has sufficient capacity to flow the entire Project contract quantity from an interconnection with the Cross-over Pipeline between the CRP system and the PennJersey system across the Delaware River to the delivery points at Lambertville and Staten Island; (ii) fails to include a greenfield compressor station near the interconnection between the proposed Cross-over Pipeline and the Penn-Jersey system that is necessary due to the higher maximum allowable operating pressure on the Penn-Jersey system and the fact that the operating pressure on the Penn-Jersey system often exceeds the operating pressure of the Cross-over Pipeline; (iii) miscalculates the additional compression that would be required at the Eagle Compressor Station; and (iv) depending on the 28 compression required for the alternative project, does not consider that the alternative project may require a new greenfield compressor station near the Eagle Compressor Station site. The flow diagram prepared by Texas Eastern to correct the critical engineering flaws noted above that occur downstream of the Marietta Compressor Station is provided as the third diagram in Exhibit Z-3. The modifications necessary to correct these engineering flaws result in environmental impacts and permitting issues that make such an alternative incapable of satisfying the purpose and need of the TEAM 2014 Project, as explained more fully in Resource Report 10. In addition, the costs of the alternative project would be significantly greater than the costs provided in the GSC Study and significantly greater than the costs associated with expanding the CRP system with a crossing of the Delaware River. Specifically, the cost associated with the facilities downstream of the Marietta Compressor Station in the GSC Study alternative, as modified to correct engineering flaws, would be approximately $125 million greater than the costs associated with the facilities downstream of the Marietta Compressor Station in Texas Eastern’s alternative to expand the CRP system with a crossing of the Delaware River. However, as discussed herein and in Resource Report 10, expanding the CRP system did not meet Texas Eastern’s business objectives. Thus, for this reason, the reasons stated above and for all the reasons explained in detail in the Environmental Report, ConocoPhillips’ preferred CRP system expansion should not be considered and is not a viable alternative for the Project. 29 E. The Commission Should Disregard Any Challenge by ConocoPhillips to the Design of the TEAM 2014 Project. The Open Season and Reverse Open Season undertaken by Texas Eastern for the Project complied with Commission policy and precedent and did not result in any discrimination against ConocoPhillips or any other shipper. Accordingly, the Project is appropriately designed, and the Commission should disregard arguments to the contrary by ConocoPhillips. Contrary to ConocoPhillips’ desired outcome, prior Commission and court decisions are clear that pipelines cannot be compelled to build another project because the Commission does not direct the design of projects nor does the Commission have the authority to compel applicants to construct a different project than the one proposed by the applicant. In addition, ConocoPhillips’ own study is incorrect. For all these reasons, Texas Eastern respectfully requests that the Commission find that its Open Season and Reverse Open Season were conducted in compliance with the Commission’s policy and precedent and deny any requests from ConocoPhillips that Texas Eastern construct a different project involving an expansion of the CRP system. V. Environmental Impact The Resource Reports included herewith more fully describe the potential environmental impacts of the TEAM 2014 Project. The information provided in the Resource Reports has been prepared in accordance with Part 380 of the Commission’s regulations for the Commission Staff to conduct its environmental analysis of the Project in this proceeding. In addition, Texas Eastern has included, as Exhibit Z-4 attached hereto, a draft Environmental Assessment and, as Exhibit Z-5 attached hereto, a matrix that identifies the specific locations in the Resource Reports where the information requested by Commission Staff in Docket No. PF12-19 has been incorporated. 30 As the Resource Reports show, the environmental impact associated with the construction of the TEAM 2014 Project is limited. Texas Eastern has incorporated the Commission’s Upland Erosion Control, Revegetation and Maintenance Plan and the Commission’s Wetland and Waterbody Construction and Mitigation Procedures (January 17, 2003 versions of both) into the Erosion and Sediment Control Plan to be used in this proposal. In addition, Texas Eastern has co-located its pipeline segments with its existing transmission system and will incorporate standard environmental mitigation measures into its construction specifications. The Resource Reports demonstrate that (i) the impact of the proposed TEAM 2014 Project will be minimal, (ii) any adverse impacts can be mitigated or avoided, (iii) the proposed action is the best alternative, and (iv) the short-term use of the environment will not conflict with the long-term productivity. Additionally, Texas Eastern will accommodate general and site-specific protective measures for any sensitive wildlife habitat and species identified during the course of the Project. Under these circumstances, approval of the proposed facilities described herein will not be a major federal action significantly affecting the quality of the human environment. The TEAM 2014 Project will be constructed in accordance with applicable environmental permits, approvals and regulations. Texas Eastern is committed to minimizing the environmental impact of the Project and to reclaiming all disturbed areas to a consistently high standard, regardless of land ownership. Texas Eastern will work diligently to ensure that any questions related to the environmental aspects of the TEAM 2014 Project are resolved promptly and completely and that the facilities are constructed in an efficient and appropriate manner. In addition, and consistent with the Commission’s desire for early input by potential stakeholders, Texas Eastern has made 31 significant efforts throughout the pre-filing process in Docket No. PF12-19 to inform the public, particularly landowners, relevant resource agencies, and other interested stakeholders, about the TEAM 2014 Project. The construction activities are not anticipated to have adverse effects on residences or industrial areas. The construction activities will not have a negative impact on public, recreational, or scenic areas, and the impact on vegetation, wildlife, and cultural resources will be minimal. As described in the Resource Reports, Texas Eastern, to the extent practicable and in most cases, will utilize existing right-of-way to install new pipeline loop and for the aboveground facility modifications. The abandonment in place of the compressor units will be achieved by cutting and capping the aboveground suction and discharge pipeline, without earth disturbance at the compressor station. VI. Supply Texas Eastern’s shippers are responsible for obtaining the gas supplies to be transported on Texas Eastern’s pipeline system. Texas Eastern proposes to provide only open-access transportation service for the facilities proposed herein. VII. Rates and Tariff Texas Eastern is proposing to charge initial incremental recourse rates under Rate Schedule FT-1 for firm service on the TEAM 2014 Project facilities. These rates and the support for the derivation of these rates are set forth in Exhibit P to this Application. As reflected on the pro forma tariff records attached hereto as part of Exhibit P, the incremental recourse reservation rate is $13.798 per month per Dth of capacity subscribed, with respect to firm service on the TEAM 2014 Project facilities. As shown 32 in Exhibit P, Texas Eastern has utilized its mainline depreciation rate for onshore facilities of 1.22 percent. With respect to interruptible service that is available on the TEAM 2014 Project facilities during those times when all of the reserved firm capacity on the Project facilities is not being utilized, Texas Eastern does not propose to track interruptible service separately on existing facilities or the expansion facilities. Accordingly, Texas Eastern proposes to charge its system interruptible transportation rates for all interruptible throughput on the TEAM 2014 Project facilities consistent with the rate design approved by the Commission for various other Texas Eastern incremental projects in the Northeast market area, including Texas Eastern’s TIME, TIME II, TIME III, TEMAX, and TEAM 2012 Projects.31 Texas Eastern proposes to recover incremental fuel use and lost and unaccounted for fuel (“LAUF”), as well as incremental electric power costs associated with providing firm service on the TEAM 2014 Project facilities, through incremental Applicable Shrinkage Adjustment (“ASA”) percentages and incremental Electric Power Cost (“EPC”) rates. The incremental fuel and electric power derivation is shown on Exhibit Z2. Consistent with the Commission’s policy and precedent,32 Texas Eastern proposes to track changes in fuel and electric power costs for these incremental services on an incremental basis through its ASA mechanism set forth in Section 15.6 of its GT&C and through its EPC Adjustment mechanism set forth in Section 15.1 of its GT&C. Texas 31 See Texas Eastern Transmission, LP, 137 FERC ¶ 61,140 (2011); Texas Eastern Transmission, LP, 129 FERC ¶ 61,151 (2009); Texas Eastern Transmission, LP, 119 FERC ¶ 61,258 (2007); Texas Eastern Transmission, LP, 99 FERC ¶ 61,383 (2002), order denying reh’g and granting clarification, 101 FERC ¶ 61,046 (2002). 32 Id. 33 Eastern will adjust its periodic tracker mechanisms to ensure that existing customers do not subsidize the costs resulting from these new incremental services. Texas Eastern will provide services to the TEAM 2014 Project shippers at negotiated rates in accordance with the negotiated rate authority set forth in Section 29 of Texas Eastern’s GT&C and pursuant to the terms of the Precedent Agreement. Texas Eastern will file tariff records reflecting its negotiated rate agreements with the TEAM 2014 Project shippers within 30 to 60 days prior to when the underlying negotiated rates are proposed to become effective. In addition, in light of the north-to-south path subscribed by the TEAM 2014 Project shippers on the Texas Eastern system from Zone M2 to Access Area Zones ELA and WLA and the modifications proposed herein that are designed to make portions of the system from Zone M2 to the Access Area bi-directional, Texas Eastern will provide the TEAM 2014 Project shippers with Order No. 637 rights in Access Area Zones ELA and WLA. To implement these rights, Texas Eastern will deem that, for purposes of the TEAM 2014 Rate Schedule FT-1 Agreements, Zones ELA and WLA are Market Area Zones, as that term is defined in Texas Eastern’s Tariff, for purposes of segmentation rights under the Tariff. Texas Eastern will make a tariff filing with respect to these rights prior to placing the TEAM 2014 Project facilities into service. AFUDC Representation Texas Eastern hereby provides its statement representing that the Allowance for Funds Used During Construction (“AFUDC”) accruals included in the cost of the TEAM 2014 Project, reflected in Exhibit K hereto, are in compliance with the Commission’s 34 policy on AFUDC accruals as set forth in the Docket No. AD10-3-000 proceeding.33 Texas Eastern began accruing AFUDC for the TEAM 2014 Project on April 10, 2012, and in accordance with the Commission’s AFUDC policy, Texas Eastern hereby affirms that it had begun to incur capital expenditures for the Project on that date and that activities necessary to prepare the Project for its intended use were in progress at that time. VIII. Other Applications With the exception of the instant Application, Texas Eastern knows of no other applications pending or required before the Commission under the NGA for the proposed TEAM 2014 Project. Texas Eastern will require other federal, state, and local authorizations for the facilities proposed herein, in addition to the authorizations requested in this Application. Texas Eastern is working with a number of federal, state, and local agencies, as necessary, to obtain permits to complete the construction of the Project. Texas Eastern has included in Exhibit J a list of all federal approvals and, as part of Resource Report 1, a list of all required permits and consultations to construct the facilities proposed in this Application and the agencies in which the application for such permits or certificates was filed or is expected to be filed. IX. Notice A form of Notice suitable for publication in the Federal Register is attached hereto. 33 Southern Natural Gas Co., et al., 130 FERC ¶ 61,193 (2010); see also Texas Eastern Transmission, LP, 131 FERC ¶ 61,164 (2010). 35 X. Exhibits This is an abbreviated application filed pursuant to Section 157.7 of the Commission’s regulations under the NGA, pursuant to which Texas Eastern has omitted the exhibits and data that are inapplicable or are unnecessary to disclose fully the nature and extent of the proposal herein. A list of the exhibits and documents filed with this Application, which are incorporated by reference as if set forth fully herein, or which have been omitted for the reasons set forth below, is as follows: Exhibit A Articles of Incorporation Omitted. Exhibit A has been filed in Docket No. CP06-115-000 and is incorporated herein by reference. Exhibit B State Authorization Omitted. Exhibit B has been filed in Docket No. CP06-115-000 and is incorporated herein by reference. Exhibit C Company Officials Attached. Exhibit D Subsidiaries and Affiliates Attached. Exhibit E Other Pending Applications and Filings Omitted. This information is contained in Section VIII of this Application. Exhibit F Location of Facilities Attached. Exhibit F-I Environmental Report Attached hereto in Volumes II through IV. Resource Report Nos. 1 through 12 as specified in Sections 380.3 and 380.12 of the Commission’s regulations are included herewith. Appendices from Resource Report 1 (landowner information) and Resource Report 4 (cultural resource assessment) have been segregated and bound separately in Volume III and are labeled “Contains Privileged Information—Do Not Release.” Appendices containing Critical Energy Infrastructure Information have been segregated and bound separately in Volume IV and are labeled 36 “Contains Critical Energy Infrastructure Information—Do Not Release.” Exhibits G through G-II Flow Diagrams and Flow Diagram Data Attached hereto as part of Volume IV and marked “Contains Critical Energy Infrastructure Information—Do Not Release.” The confidential hydraulic models supporting Exhibits G through G-II are available in electronic form only and are found in Volume III. Two sets of Exhibit G are included as part of Volume IV. One set shows the forward-flow component of the Project, and the other set shows the reverse-flow component of the Project. With respect to the facilities accommodating the reverse-flow component of the Project, there have been no changes with respect to the design of those facilities for traditional forward flow. The facilities designed to accommodate the forward-flow component are based on a winter peak day design, while the facilities designed for the reverse-flow component are based on a reverse-flow design day. The two design day scenarios are mutually exclusive. Exhibit H Total Gas Supply Omitted. This information is contained in Section VI of this Application. Exhibit I Market Data Enclosed herewith under seal as part of Volume III and marked “Contains Privileged Information—Do Not Release.” This exhibit includes copies of the Precedent Agreements between Texas Eastern and the TEAM 2014 Project shippers. Exhibit J Federal Authorizations Attached. This exhibit identifies the following: each federal authorization that the Project will require; the federal or state agency or officer that will issue each required authorization; the date each request for authorization was submitted; why any request was not submitted and the date submission is expected; and the date by which final action on each federal authorization has been requested or is expected. Exhibit K Cost of Facilities Attached. Exhibit L Financing Omitted. Texas Eastern will finance the costs of the TEAM 2014 Project through funds on hand and borrowings under short-term financing arrangements. 37 Exhibit M Construction, Operation and Maintenance Omitted. Texas Eastern will construct or cause the proposed facilities to be constructed, and will manage and operate the proposed facilities. Exhibit N Revenues, Expenses and Income Omitted. This information is included in Exhibit P. Exhibit O Depreciation and Depletion Omitted. Texas Eastern will use its existing onshore depreciation rate of 1.22% for the facilities proposed herein. Exhibit P Tariff and Rates Pro forma tariff records setting forth the proposed initial incremental recourse rates for the TEAM 2014 Project facilities are included herewith. In addition, Exhibit P includes the support schedules for the derivation of such initial recourse rates. Exhibit T Related Applications Three of the six 1,100 HP reciprocating gas compressor units proposed for abandonment at the Delmont Compressor Station were certificated in Docket No. G-2341. The additional three 1,100 HP reciprocating gas compressor units proposed for abandonment at the Delmont Compressor Station were certificated in Docket No. G-9787. The 18,500 HP gas turbine compressor unit proposed for abandonment at the Delmont Compressor Station was certificated in Docket No. CP81-4. Exhibit U Contracts and Other Agreements Omitted. No contracts or other agreements pertain to the abandonment of the facilities proposed herein. Exhibit V Flow Diagram After Abandonment Omitted. This exhibit is provided as part of Exhibits G through G-II, which are attached hereto in Volume IV and marked “Contains Critical Energy Infrastructure Information—Do Not Release.” Exhibit W Impact on Customers Omitted. No service to customers will be terminated by the abandonment of facilities proposed herein. Exhibit X Effect on Existing Tariffs Omitted. No effect upon any of Texas Eastern’s rate schedules or tariffs on file with the Commission will occur from granting the 38 proposed abandonment. Exhibit Y Accounting Treatment of Abandonment Attached. Exhibit Z Location of Facilities Omitted. This information is included as Exhibit F. Exhibit Z-1 Open Season Notice (Exhibit Z-1(a)), Reverse Open Season Notice (Exhibit Z-1(b)), and related diagrams referenced in Section IV.B (Exhibit Z-1(c) and (d)). Exhibit Z-2 Incremental Fuel and Electric Power Derivation Exhibit Z-3 Flow diagrams representing the alternatives discussed in Section IV.C and IV.D.2 and in Resource Report 10, including the associated costs for each alternative design, are attached hereto as part of Volume IV and marked “Contains Critical Energy Infrastructure Information—Do Not Release.” Exhibit Z-4 Draft Environmental Assessment Exhibit Z-5 Matrix of information in the Resource Reports reflecting Commission Staff’s comments in Docket No. PF12-19. XI. Other Texas Eastern requests that the Commission grant this Application in accordance with the shortened procedures set forth in Rules 801 and 802 of the Commission’s Rules of Practice and Procedure. Also, if the Commission utilizes the shortened procedures, Texas Eastern requests that the intermediate decision procedure be omitted and waives oral hearing and opportunity for filing exceptions. Exhibits G through G-II and Exhibit Z-3, as well as parts of Exhibit F-I, are found in Volume IV and contain Critical Energy Infrastructure Information regarding system pressure and flow. Pursuant to Section 388.112 of the Commission’s regulations, Texas Eastern hereby requests privileged treatment of these exhibits, which are marked as “Contains Critical Energy Infrastructure Information—Do Not Release.” In addition, 39 Texas Eastern is marking Volume III as privileged because it contains cultural resource location information and landowner information from Exhibit F-I, confidential agreements representing market data from Exhibit I, and confidential hydraulic models supporting Exhibits G through G-II.34 Texas Eastern requests privileged treatment for this volume and has marked it “Contains Privileged Information—Do Not Release.” Texas Eastern has also submitted herewith the Form of Notice of this Application. XII. Summary of Authorizations Requested WHEREFORE, Texas Eastern respectfully requests that for the reasons set forth herein, the Commission review this Application and issue a final certificate of public convenience and necessity approving the proposal as described herein without condition or modification, and approving, authorizing and/or granting Texas Eastern: (i) a certificate of public convenience and necessity to construct, install, own, operate and maintain the facilities, as proposed herein, including an order to abandon in place certain facilities; (ii) authority to charge initial incremental recourse rates for firm service on the TEAM 2014 Project facilities and existing system recourse rates for interruptible service on such facilities; and (iii) any waivers, authority, and further relief as may be necessary to implement the proposal contained herein. 34 The hydraulic models supporting Exhibits G through G-II are available only in electronic form in WFP format. These hydraulic model files should be treated as both Critical Energy Infrastructure Information (“CEII”) and privileged and confidential pursuant to Section 388.112 of the Commission’s regulations because the files contain proprietary modeling information. 18 C.F.R. § 388.112 (2012). Accordingly, Texas Eastern is hereby providing the hydraulic models designated as both CEII and privileged and confidential. Texas Eastern notes that the Commission’s eFiling system does not include the ability to designate files as both CEII and privileged and confidential. Accordingly, Texas Eastern is marking these hydraulic model files as privileged and confidential for eFiling purposes, but Texas Eastern requests both CEII and privileged and confidential treatment for the files. 40 TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Verification TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit C Company Officials Texas Eastern Transmission, LP Uses Officers of its General Partner Spectra Energy Transmission Services, LLC EXHIBIT C Spectra Energy Transmission Services, LLC As General Partner to Texas Eastern Transmission, LP Board of Managers: Theopolis Holeman J. Patrick Reddy William T. Yardley Officers: William T. Yardley, President Brian R. McKerlie, Vice President, Business Development, Northeast Transmission John V. Adams, Vice President, Supply Chain Gregory P. Bilinski, Vice President, Transmission Services Guy G. Buckley, Vice President and Treasurer Frederick S. (Steve) Bush, Vice President and Controller Allen C. Capps, Vice President Stephen W. Craft, Vice President J. Andrew Drake, Vice President, Asset Integrity Tina V. Faraca, Vice President, Engineering and Construction Richard J. Kruse, Jr., Vice President, Regulatory and FERC Compliance Officer John Thomas McCraw, Vice President Allison McHenry, Assistant Secretary James M. Pruett, Vice President Patricia M. Rice, Vice President and Secretary David A. Shammo, Vice President W. L. Whaley, Jr., Vice President, Gas Control Paul K. Haralson, Assistant Treasurer Thomas V. Wooden, Vice President, Field Operations Fulkra J. Mason, Vice President, Environmental, Health and Safety John Bremner, Vice President, US Storage & Southeast Business Development Gregg E. McBride, Vice President, Rates & Certificates Richard Paglia, Vice President, Marketing TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit D Subsidiaries and Affiliates Texas Eastern Transmission, LP Exhibit D Subsidiaries and Affiliates Texas Eastern Transmission, LP is owned by: Spectra Energy Transmission Resources, LLC Spectra Energy Transmission Services, LLC 99.00 % 1.00 %, General Partner Texas Eastern Transmission, LP owns: Texas Eastern Communications, Inc. Texas Eastern Terminal Company Spectra Energy Southeast Services, LLC 100.00 % 100.00 % 100.00 % TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit F Location of Facilities Texas Eastern Transmission, LP TEAM 2014 Project 7(b) and 7(c) Application ‐ Exhibit F ‐ Location of Facilities Richmond County, NY Hunterdon County, NJ Bi‐directional flow modifications Delivery point Multiple Receipts in: Greene/Fayette Counties, PA & Greene/Fayette Counties PA & Marshall County, WV Receipt point Existing TETLP system Existing TETLP system Existing station HP upgrades / additions New loop installation Warren County, OH Copiah County, MS Acadia Parish, LA Existing station TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit F-I Environmental Report Enclosed under separate cover in Volumes II - IV TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibits G through G-II Flow Diagram Data Enclosed under separate cover in Volume IV, with confidential information removed to Volume III. This information has been marked Contains Critical Energy Infrastructure Information—Do Not Release TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit I Market Data Enclosed herewith under seal in Volume III and marked “Contains Privileged Information—Do Not Release” TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit J Federal Authorizations FEDERAL AUTHORIZATIONS AGENCY PERMIT/APPROVAL SUBMISSION STATUS ANTICIPATED DATE OF RECEIPT FEDERAL FEDERAL ENERGY REGULATORY COMMISSION SECTION 7(C) CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY SUBMITTED FEBRUARY 2013 11/21/13 U.S. ARMY CORPS OF ENGINEERS - PITTSBURGH DISTRICT CLEAN WATER ACT, SECTION 404 PERMIT ANTICIPATED SUBMITTAL IN MARCH 2013 12/1/13 U.S. ARMY CORPS OF ENGINEERS - BALTIMORE DISTRICT CLEAN WATER ACT, SECTION 404 PERMIT ANTICIPATED SUBMITTAL IN MARCH 2013 12/1/13 U.S. ARMY CORPS OF ENGINEERS - PHILADELPHIA DISTRICT CLEAN WATER ACT, SECTION 404 PERMIT ANTICIPATED SUBMITTAL IN MARCH 2013 12/1/13 U.S. ARMY CORPS OF ENGINEERS - VICKSBURG DISTRICT CLEAN WATER ACT, SECTION 404 PERMIT ANTICIPATED SUBMITTAL IN MARCH 2013 12/1/13 U.S. FISH AND WILDLIFE SERVICE (PENNSYLVANIA FIELD OFFICE) ENDANGERED SPECIES ACT, SECTION 7 CONSULTATION INITIAL CONSULTATION LETTER SUBMITTED MARCH 30, 2012; CONSULTATION ONGOING 8/31/2013 U.S. FISH AND WILDLIFE SERVICE (MISSISSIPPI FIELD OFFICE) ENDANGERED SPECIES ACT, SECTION 7 CONSULTATION INITIAL CONSULTATION LETTER SUBMITTED SEPTEMBER 28, 2012; CONSULTATION ONGOING 5/1/2013 U.S. DEPARTMENT OF COMMERCE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION NATIONAL MARINE FISHERIES SERVICE (NMFS) ENDANGERED SPECIES ACT, SECTION 7 CONSULTATION INITIAL CONSULTATION LETTER SUBMITTED MARCH 30, 2012 RECEIVED 4/12/12 PENNSYLVANIA STATE HISTORIC PRESERVATION OFFICE NATIONAL HISTORIC PRESERVATION ACT, SECTION 106 CONSULTATION INITIAL CONSULTATION LETTER SUBMITTED APRIL 10, 2012; TECHNICAL REPORT TO BE SUBMITTED IN FEBRUARY 2013 11/1/13 MISSISSIPPI STATE HISTORIC PRESERVATION OFFICE NATIONAL HISTORIC PRESERVATION ACT, SECTION 106 CONSULTATION INITIAL CONSULTATION SUBMITTED JANUARY 16, 2013; TECHNICAL REPORT TO BE SUBMITTED IN FEBRUARY 2013 5/1/13 TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit K Cost of Facilities EXHIBIT K 1 OF 42 NAME: DOCKET NO.: PROJECT: PROJECT YEAR: TEXAS EASTERN TRANSMISSION LP TEAM 2014 2014 COST BASIS OF FACILITY ESTIMATES The costs contained in this Exhibit K comprise a detailed estimate of the construction expenditures for the facilities proposed in this filing. The cost estimates for all facilities are based on current dollars. Prices of major equipment items are based on direct contact with selected manufacturers, while minor prices are from recent experience and manufactures' catalogue information. Each facility estimate includes contingency reflecting the possible extent that actual costs may exceed the direct estimated values due to unanticipated elements of cost and changes in design. Escalation is a calculation of all costs except Engineering, Labor, A&G and AFUDC. EXHIBIT K 2 OF 42 TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: TEAM 2014 2014 DESCRIPTION TOTAL Compression $263,804,789 Pipeline $212,005,565 M&R $4,904,216 AFUDC $27,265,937 SUB TOTAL Escalation PROJECT TOTAL $507,980,507 $11,756,131 $519,736,638 EXHIBIT K 3 OF 42 SUMMARY COST OF FACILITIES NAME: DOCKET NO.: PROJECT: PROJECT YEAR: ITEM TEXAS EASTERN TRANSMISSION LP TEAM 2014 2014 DESCRIPTION COMPRESSION PIPELINE M&R TOTAL 132 RIGHT OF WAY $136,000 $10,640,729 $0 $10,776,729 133 RIGHT OF WAY DAMAGES $110,000 $1,880,641 $0 $1,990,641 134 SURVEYS $1,628,424 $6,679,923 $0 $8,308,347 135 MATERIALS $116,555,130 $30,009,501 $1,301,251 $147,865,882 136 LABOR $65,345,589 $103,012,385 $1,937,002 $170,294,976 137 ENGINEERING & INSPECTION $29,098,651 $15,070,351 $283,460 $44,452,462 144 OVERHEAD $24,557,351 $18,323,097 $772,768 $43,653,216 145 AFUDC $14,896,040 $12,087,860 $282,037 $27,265,937 146 CONTINGENCY $22,783,198 $22,833,588 $609,735 $46,226,521 147 LEGAL FEES $225,000 $952,094 $0 $1,177,094 148 OTHER SERVICES $3,365,446 $2,603,256 $0 $5,968,702 $278,700,829 $224,093,425 $5,186,253 $507,980,507 $5,584,166 $5,989,874 $182,091 $11,756,131 $284,284,995 $230,083,299 $5,368,344 $519,736,638 SUB TOTAL Escalation TOTAL PROJECT EXHIBIT K 4 OF 42 SUMMARY COST OF FACILITIES NAME; DOCKET NO.: PROJECT: PROJECT YEAR: TEXAS EASTERN TRANSMISSION LP TEAM 2014 2014 DESCRIPTION TOTAL Compression Facilities Pipeline Facilities Meter Station Facilities $284,284,995 $230,083,299 $5,368,344 PROJECT TOTAL $519,736,638 EXHIBIT K 5 OF 42 SUMMARY COST OF FACILITIES NAME; DOCKET NO.: PROJECT: PROJECT YEAR: DESCRIPTION TEXAS EASTERN TRANSMISSION LP TEAM 2014 2014 TOTAL Holbrook Discharge Pipeline Bernville Discharge Pipeline Grantville Discharge Pipeline Perulack Discharge Pipeline Shermansdale Discharge Pipeline Launcher/Receiver Modifications - KY Launcher/Receiver Modifications - MS Launcher/Receiver Modifications - OH Launcher/Receiver Modifications - WV Launcher/Receiver Modifications - PA Launcher/Receiver Modifications - TN Launcher/Receiver Modifications - AL Armagh Compressor Sta. HP Addition Delmont Compressor Sta. HP Addition Delmont Compressor Sta. Retirement Entriken Compressor Sta. HP Addition Uniontown Compressor Sta. Upgrade Wheelersburg Compressor Sta. Upgrade Athens Compressor Sta. Upgrade Barton Compressor Sta. Upgrade Berne Compressor Sta. Upgrade Clinton Compressor Sta. Upgrade Danville Compressor Sta. Upgrade Egypt Compressor Sta. Upgrade Five Points Compressor Sta. Upgrade Gladeville Compressor Sta. Upgrade Holbrook Compressor Sta. Upgrade Kosciusko Compressor Sta. Upgrade Mt. Pleasant Compressor Sta. Upgrade Owingsville Compressor Sta. Upgrade Somerset Compressor Sta. Upgrade Summerfield Compressor Sta. Upgrade Tomkinsville Compressor Sta. Upgrade Chromatograph Installation - KY Chromatograph Installation - OH Chromatograph Installation - TN Chromatograph Installation - MS $42,650,756 $44,546,418 $44,788,969 $49,072,066 $43,547,619 $1,076,030 $1,740,434 $973,914 $181,632 $436,916 $894,548 $173,997 $56,994,115 $100,942,093 $1,052,897 $62,705,694 $19,064,806 $4,819,434 $924,990 $1,892,661 $6,161,942 $944,156 $3,267,711 $2,579,437 $889,750 $846,681 $1,021,964 $13,192,087 $1,566,931 $846,681 $842,236 $2,882,048 $846,681 $1,493,139 $959,273 $2,169,364 $746,568 PROJECT TOTAL $519,736,638 EXHIBIT K 6 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Holbrook Discharge Pipeline ITEM DESCRIPTION PIPELINE 132 RIGHT OF WAY 133 RIGHT OF WAY DAMAGES 134 SURVEYS $1,253,458 135 MATERIALS $5,816,022 136 LABOR 137 ENGINEERING & INSPECTION $3,056,237 144 OVERHEAD $3,356,470 145 AFUDC $2,240,737 146 CONTINGENCY $4,217,770 147 LEGAL FEES $172,623 148 OTHER SERVICES $476,856 $1,962,236 $280,077 $18,716,125 SUBTOTAL Escalation PROJECT TOTAL $41,548,611 3.05% $1,102,145 $42,650,756 EXHIBIT K 7 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Bernville Discharge Pipeline ITEM DESCRIPTION PIPELINE 132 RIGHT OF WAY 133 RIGHT OF WAY DAMAGES 134 SURVEYS $1,207,803 135 MATERIALS $5,799,872 136 LABOR 137 ENGINEERING & INSPECTION $2,555,011 144 OVERHEAD $3,458,677 145 AFUDC $2,340,329 146 CONTINGENCY $4,405,233 147 LEGAL FEES $231,268 148 OTHER SERVICES $475,010 $2,442,443 $727,255 $19,752,386 SUBTOTAL Escalation PROJECT TOTAL $43,395,287 3.05% $1,151,131 $44,546,418 EXHIBIT K 8 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Grantville Discharge Pipeline ITEM DESCRIPTION PIPELINE 132 RIGHT OF WAY 133 RIGHT OF WAY DAMAGES 134 SURVEYS $1,304,306 135 MATERIALS $5,947,902 136 LABOR 137 ENGINEERING & INSPECTION $2,269,911 144 OVERHEAD $3,508,947 145 AFUDC $2,353,072 146 CONTINGENCY $4,429,219 147 LEGAL FEES $187,019 148 OTHER SERVICES $660,286 $2,027,376 $347,182 $20,596,350 SUBTOTAL Escalation PROJECT TOTAL $43,631,570 3.05% $1,157,399 $44,788,969 EXHIBIT K 9 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Perulack Discharge Pipeline ITEM DESCRIPTION PIPELINE 132 RIGHT OF WAY 133 RIGHT OF WAY DAMAGES 134 SURVEYS $1,459,706 135 MATERIALS $6,465,914 136 LABOR 137 ENGINEERING & INSPECTION $3,375,658 144 OVERHEAD $3,855,132 145 AFUDC $2,578,092 146 CONTINGENCY $4,852,778 147 LEGAL FEES $191,517 148 OTHER SERVICES $488,222 $2,242,483 $272,218 $22,022,266 SUBTOTAL Escalation PROJECT TOTAL $47,803,986 3.05% $1,268,080 $49,072,066 EXHIBIT K 10 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Shermansdale Discharge Pipeline ITEM DESCRIPTION PIPELINE 132 RIGHT OF WAY 133 RIGHT OF WAY DAMAGES 134 SURVEYS $1,255,890 135 MATERIALS $5,677,095 136 LABOR 137 ENGINEERING & INSPECTION $2,860,838 144 OVERHEAD $3,431,582 145 AFUDC $2,287,855 146 CONTINGENCY $4,306,461 147 LEGAL FEES $169,667 148 OTHER SERVICES $502,882 $1,966,191 $253,909 $19,709,928 SUBTOTAL Escalation PROJECT TOTAL $42,422,298 3.05% $1,125,321 $43,547,619 EXHIBIT K 11 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Launcher/Receiver Modifications - KY ITEM DESCRIPTION PIPELINE 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $42,900 135 MATERIALS $62,596 136 LABOR $473,936 137 ENGINEERING & INSPECTION $131,660 144 OVERHEAD $149,692 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $56,532 $122,215 SUBTOTAL Escalation PROJECT TOTAL $1,039,531 4.04% $36,499 $1,076,030 EXHIBIT K 12 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Launcher/Receiver Modifications - MS ITEM DESCRIPTION PIPELINE 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $61,480 135 MATERIALS $82,174 136 LABOR $589,585 137 ENGINEERING & INSPECTION $451,839 144 OVERHEAD $207,205 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $91,438 $197,677 SUBTOTAL Escalation PROJECT TOTAL $1,681,398 4.04% $59,036 $1,740,434 EXHIBIT K 13 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Launcher/Receiver Modifications - OH ITEM DESCRIPTION PIPELINE 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $34,320 135 MATERIALS $53,354 136 LABOR $421,019 137 ENGINEERING & INSPECTION $144,985 144 OVERHEAD $125,415 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $51,170 $110,615 SUBTOTAL Escalation PROJECT TOTAL $940,878 4.04% $33,036 $973,914 EXHIBIT K 14 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Launcher/Receiver Modifications - WV ITEM DESCRIPTION PIPELINE 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $8,580 135 MATERIALS $9,607 136 LABOR $76,674 137 ENGINEERING & INSPECTION $26,280 144 OVERHEAD $24,158 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $9,542 $20,630 SUBTOTAL Escalation PROJECT TOTAL $175,471 4.04% $6,161 $181,632 EXHIBIT K 15 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Launcher/Receiver Modifications - PA ITEM DESCRIPTION PIPELINE 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $17,160 135 MATERIALS $26,679 136 LABOR 137 ENGINEERING & INSPECTION $52,692 144 OVERHEAD $60,824 145 AFUDC $22,954 146 CONTINGENCY $49,625 147 LEGAL FEES $0 148 OTHER SERVICES $0 $192,162 SUBTOTAL Escalation PROJECT TOTAL $422,096 4.04% $14,820 $436,916 EXHIBIT K 16 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Launcher/Receiver Modifications - TN ITEM DESCRIPTION PIPELINE 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $34,320 135 MATERIALS $51,214 136 LABOR $384,325 137 ENGINEERING & INSPECTION $125,144 144 OVERHEAD $120,601 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $46,998 $101,602 SUBTOTAL Escalation PROJECT TOTAL $864,204 4.04% $30,344 $894,548 EXHIBIT K 17 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Launcher/Receiver Modifications - AL ITEM DESCRIPTION PIPELINE 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $0 135 MATERIALS $17,072 136 LABOR $77,629 137 ENGINEERING & INSPECTION $20,096 144 OVERHEAD $24,394 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $9,141 $19,763 SUBTOTAL Escalation PROJECT TOTAL $168,095 4.04% $5,902 $173,997 EXHIBIT K 18 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Armagh Compressor Sta. HP Addition ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $22,000 133 RIGHT OF WAY DAMAGES $25,000 134 SURVEYS 135 MATERIALS $23,740,030 136 LABOR $14,900,726 137 ENGINEERING & INSPECTION $4,847,773 144 OVERHEAD $4,695,501 145 AFUDC $2,994,292 146 CONTINGENCY $4,125,111 147 LEGAL FEES 148 OTHER SERVICES $277,250 $75,000 $282,055 SUBTOTAL Escalation PROJECT TOTAL $55,984,738 2.07% $1,009,377 $56,994,115 EXHIBIT K 19 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Delmont Compressor Sta. HP Addition ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $22,000 133 RIGHT OF WAY DAMAGES $25,000 134 SURVEYS 135 MATERIALS $45,509,999 136 LABOR $21,144,291 137 ENGINEERING & INSPECTION $10,172,323 144 OVERHEAD $8,521,920 145 AFUDC $5,358,496 146 CONTINGENCY $6,725,166 147 LEGAL FEES 148 OTHER SERVICES $229,250 $75,000 $1,334,555 SUBTOTAL Escalation PROJECT TOTAL $99,118,000 2.09% $1,824,093 $100,942,093 EXHIBIT K 20 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Delmont Compressor Sta. Retirement ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $0 135 MATERIALS $0 136 LABOR 137 ENGINEERING & INSPECTION 144 OVERHEAD 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES 148 OTHER SERVICES $452,961 $491,710 $0 $85,658 $0 $1,751 SUBTOTAL Escalation PROJECT TOTAL $0 $1,032,080 2.09% $20,817 $1,052,897 EXHIBIT K 21 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Entriken Compressor Sta. HP Addition ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $22,000 133 RIGHT OF WAY DAMAGES $25,000 134 SURVEYS 135 MATERIALS $28,320,797 136 LABOR $15,104,379 137 ENGINEERING & INSPECTION $4,495,125 144 OVERHEAD $5,094,632 145 AFUDC $3,294,360 146 CONTINGENCY $4,538,504 147 LEGAL FEES 148 OTHER SERVICES $292,250 $75,000 $333,117 SUBTOTAL Escalation PROJECT TOTAL $61,595,164 2.07% $1,110,530 $62,705,694 EXHIBIT K 22 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Uniontown Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $22,000 133 RIGHT OF WAY DAMAGES $25,000 134 SURVEYS 135 MATERIALS 136 LABOR $2,940,480 137 ENGINEERING & INSPECTION $1,189,138 144 OVERHEAD $1,500,871 145 AFUDC $1,001,605 146 CONTINGENCY $1,379,870 147 LEGAL FEES 148 OTHER SERVICES $199,250 $10,448,951 $0 $20,000 SUBTOTAL Escalation PROJECT TOTAL $18,727,165 2.07% $337,641 $19,064,806 EXHIBIT K 23 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Wheelersburg Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS 135 MATERIALS 136 LABOR 137 ENGINEERING & INSPECTION $948,513 144 OVERHEAD $473,471 145 AFUDC $253,198 146 CONTINGENCY $693,995 147 LEGAL FEES 148 OTHER SERVICES $42,000 $762,751 $1,429,505 $0 $52,527 SUBTOTAL Escalation PROJECT TOTAL $4,655,960 4.04% $163,474 $4,819,434 EXHIBIT K 24 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Athens Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $15,000 135 MATERIALS $40,020 136 LABOR $205,957 137 ENGINEERING & INSPECTION $345,837 144 OVERHEAD $105,007 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $48,596 $133,198 SUBTOTAL Escalation PROJECT TOTAL $893,615 4.04% $31,375 $924,990 EXHIBIT K 25 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Barton Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $30,000 135 MATERIALS $53,606 136 LABOR $439,612 137 ENGINEERING & INSPECTION $491,656 144 OVERHEAD $237,543 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES 148 OTHER SERVICES $99,435 $272,542 $0 $204,069 SUBTOTAL Escalation PROJECT TOTAL $1,828,463 4.04% $64,198 $1,892,661 EXHIBIT K 26 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Berne Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS 135 MATERIALS $1,222,174 136 LABOR $1,626,046 137 ENGINEERING & INSPECTION $1,064,990 144 OVERHEAD $671,430 145 AFUDC $323,729 146 CONTINGENCY $733,087 147 LEGAL FEES 148 OTHER SERVICES $112,131 $0 $291,084 SUBTOTAL Escalation PROJECT TOTAL $6,044,671 4.04% $117,271 $6,161,942 EXHIBIT K 27 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Clinton Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $15,000 135 MATERIALS $40,020 136 LABOR $249,041 137 ENGINEERING & INSPECTION $316,137 144 OVERHEAD $106,372 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $49,603 $135,958 SUBTOTAL Escalation PROJECT TOTAL $912,131 4.04% $32,025 $944,156 EXHIBIT K 28 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Danville Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS 135 MATERIALS $813,777 136 LABOR $923,182 137 ENGINEERING & INSPECTION $473,877 144 OVERHEAD $285,712 145 AFUDC $171,675 146 CONTINGENCY $470,548 147 LEGAL FEES $0 148 OTHER SERVICES $0 $18,100 SUBTOTAL Escalation PROJECT TOTAL $3,156,871 4.04% $110,840 $3,267,711 EXHIBIT K 29 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Egypt Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS 135 MATERIALS $429,518 136 LABOR $830,556 137 ENGINEERING & INSPECTION $424,174 144 OVERHEAD $233,040 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES 148 OTHER SERVICES $22,000 $96,113 $263,438 $0 $218,544 SUBTOTAL Escalation PROJECT TOTAL $2,517,383 4.04% $62,054 $2,579,437 EXHIBIT K 30 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Five Points Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $92,531 135 MATERIALS $55,070 136 LABOR $147,664 137 ENGINEERING & INSPECTION $325,251 144 OVERHEAD $76,637 145 AFUDC $46,744 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $130,614 SUBTOTAL Escalation PROJECT TOTAL $874,511 4.04% $15,239 $889,750 EXHIBIT K 31 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Gladeville Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS 135 MATERIALS 136 LABOR $249,040 137 ENGINEERING & INSPECTION $258,068 144 OVERHEAD $99,430 145 AFUDC $44,483 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $5,000 $40,020 $121,921 SUBTOTAL Escalation PROJECT TOTAL $817,962 4.04% $28,719 $846,681 EXHIBIT K 32 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Holbrook Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $15,000 135 MATERIALS $40,020 136 LABOR $249,040 137 ENGINEERING & INSPECTION $370,474 144 OVERHEAD $111,912 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $53,691 $147,162 SUBTOTAL Escalation PROJECT TOTAL $987,299 4.04% $34,665 $1,021,964 EXHIBIT K 33 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Kosciusko Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $48,000 133 RIGHT OF WAY DAMAGES $10,000 134 SURVEYS $64,000 135 MATERIALS $4,134,069 136 LABOR $2,991,954 137 ENGINEERING & INSPECTION $1,359,001 144 OVERHEAD $1,132,288 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES 148 OTHER SERVICES $693,071 $1,899,654 $0 $412,579 SUBTOTAL Escalation PROJECT TOTAL $12,744,616 4.04% $447,471 $13,192,087 EXHIBIT K 34 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Mt. Pleasant Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $10,600 135 MATERIALS $55,659 136 LABOR $442,263 137 ENGINEERING & INSPECTION $267,787 144 OVERHEAD $214,348 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES 148 OTHER SERVICES $82,321 $225,638 $0 $215,165 SUBTOTAL Escalation PROJECT TOTAL $1,513,781 4.04% $53,150 $1,566,931 EXHIBIT K 35 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Owingsville Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS 135 MATERIALS 136 LABOR $249,040 137 ENGINEERING & INSPECTION $258,068 144 OVERHEAD $99,430 145 AFUDC $44,483 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $5,000 $40,020 $121,921 SUBTOTAL Escalation PROJECT TOTAL $817,962 4.04% $28,719 $846,681 EXHIBIT K 36 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Somerset Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $97,531 135 MATERIALS $12,675 136 LABOR $67,808 137 ENGINEERING & INSPECTION 144 OVERHEAD $75,777 145 AFUDC $44,249 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $123,638 SUBTOTAL Escalation PROJECT TOTAL $406,132 $827,810 4.04% $14,426 $842,236 EXHIBIT K 37 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Summerfield Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS 135 MATERIALS $755,934 136 LABOR $453,004 137 ENGINEERING & INSPECTION $826,259 144 OVERHEAD $230,890 145 AFUDC $151,413 146 CONTINGENCY $333,654 147 LEGAL FEES $0 148 OTHER SERVICES $0 $81,531 SUBTOTAL Escalation PROJECT TOTAL $2,832,685 4.04% $49,363 $2,882,048 EXHIBIT K 38 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Tomkinsville Compressor Sta. Upgrade ITEM DESCRIPTION COMPRESSION 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS 135 MATERIALS 136 LABOR $249,040 137 ENGINEERING & INSPECTION $258,068 144 OVERHEAD $99,430 145 AFUDC $44,483 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $5,000 $40,020 $121,921 SUBTOTAL Escalation PROJECT TOTAL $817,962 4.04% $28,719 $846,681 EXHIBIT K 39 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Chromatograph Installation - KY ITEM DESCRIPTION M&R 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $0 135 MATERIALS $365,447 136 LABOR $540,342 137 ENGINEERING & INSPECTION 144 OVERHEAD 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $217,844 $78,445 $169,591 SUBTOTAL Escalation PROJECT TOTAL $70,824 $1,442,493 4.04% $50,646 $1,493,139 EXHIBIT K 40 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Chromatograph Installation - OH ITEM DESCRIPTION M&R 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $0 135 MATERIALS $260,382 136 LABOR $325,476 137 ENGINEERING & INSPECTION 144 OVERHEAD 145 AFUDC 146 CONTINGENCY 147 LEGAL FEES $0 148 OTHER SERVICES $0 $141,756 $50,398 $108,953 SUBTOTAL Escalation PROJECT TOTAL $39,770 $926,735 4.04% $32,538 $959,273 EXHIBIT K 41 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Chromatograph Installation - TN ITEM DESCRIPTION M&R 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $0 135 MATERIALS $492,699 136 LABOR $801,013 137 ENGINEERING & INSPECTION $137,454 144 OVERHEAD $304,246 145 AFUDC $113,972 146 CONTINGENCY $246,396 147 LEGAL FEES $0 148 OTHER SERVICES $0 SUBTOTAL Escalation PROJECT TOTAL $2,095,780 4.04% $73,584 $2,169,364 EXHIBIT K 42 OF 42 COST OF FACILITIES TEXAS EASTERN TRANSMISSION LP NAME: DOCKET NO.: PROJECT: PROJECT YEAR: FACILITY: TEAM 2014 2014 Chromatograph Installation - MS ITEM DESCRIPTION M&R 132 RIGHT OF WAY $0 133 RIGHT OF WAY DAMAGES $0 134 SURVEYS $0 135 MATERIALS $182,723 136 LABOR $270,171 137 ENGINEERING & INSPECTION 144 OVERHEAD 145 AFUDC $39,222 146 CONTINGENCY $84,795 147 LEGAL FEES $0 148 OTHER SERVICES $0 $108,922 SUBTOTAL Escalation PROJECT TOTAL $35,412 $721,245 4.04% $25,323 $746,568 TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit P Tariff and Rates Texas Eastern Transmission, LP Docket No. CP13-____ Exhibit P TEAM 2014 Project Cost of Service & Rates Table of Contents Schedule Explanatory Notes 1 Cost of Service and Rate Design 2 Operation and Maintenance Expenses 3 Depreciation Expenses and Other Taxes 4 Rate Base and Return 5 Federal and State Income Taxes 6 Rate of Return 7 Tariff 8 Texas Eastern Transmission, LP Docket No. CP13-____ Exhibit P Schedule 1 Explanatory Notes Rate Derivation As shown on Schedule 2 herein, the rates proposed for firm service under the TEAM 2014 Project are 100% reservation rates, based on the incremental cost of service developed on Schedules 2 through 7 of this Exhibit P. Texas Eastern has utilized the expansion capacity of 600,000 Dth/d as the volume determinant to develop the incremental TEAM 2014 rates. No existing system costs have been assigned to these rates and none of the incremental cost of service of the new facilities is proposed to be included in Texas Eastern’s system rates. Cost of Service The rate of return and other factors used in this Exhibit P were derived from Texas Eastern’s cost of service settlement, as amended in Docket Nos. RP98-198-000, et al., and approved by letter order issued on August 28, 1998. 1 Additionally, the current federal income tax rate of 35% has been used. Texas Eastern proposes to use its existing onshore transmission depreciation rate of 1.22% for the TEAM 2014 facilities. The capital cost estimate used herein to calculate the TEAM 2014 Project incremental cost of service totals $519,736,638, as detailed in Exhibit K. Texas Eastern proposes to recover fuel use and lost and unaccounted for fuel, as well as electric power costs associated with providing service on the TEAM 2014 facilities, through incremental Applicable Shrinkage Adjustment (“ASA”) percentages and incremental Electric Power Cost (“EPC”) rates. The incremental fuel derivation is shown on Exhibit Z-2. Consistent with the Commission’s incremental fuel methodology, Texas Eastern will track changes in fuel and electric power costs for this new incremental service on an incremental basis through its ASA mechanism set forth in Section 15.6 of its GT&C and through its EPC Adjustment mechanism set forth in Section 15.1 of its GT&C. Texas Eastern will adjust its periodic tracker mechanisms to 1 Texas Eastern Transmission Corp., 84 FERC ¶ 61,200 (1998). ensure that existing customers do not subsidize the costs resulting from this new incremental service. Tariff Records This Exhibit P includes a pro forma updated tariff section for Rate Schedule FT-1, Statement of Rates, to reflect the proposed incremental rates for the TEAM 2014 Project. The redlined tariff section highlights all changes to the currently effective tariff section. To the extent other changes to this tariff section become effective prior to placing TEAM 2014 into service, Texas Eastern will include those changes when filing to place this tariff section into effect. Docket No. CP13-___ Exhibit P Schedule 2 Texas Eastern Transmission, LP TEAM 2014 Project Cost of Service and Rate Design Line No. (1) (2) (3) (4) Description 2014 2015 2016 1 Operation and Maintenance Expense $4,685,236 $4,919,497 $5,165,472 2 Depreciation Expense $6,340,787 $6,340,787 $6,340,787 3 Taxes Other than Income $1,767,715 $1,069,619 $1,080,969 4 Federal Income Taxes $20,822,695 $20,113,462 $19,268,847 5 State Income Taxes $3,150,223 $3,042,925 $2,915,145 6 Return $62,577,926 $60,431,923 $57,876,278 7 Total Cost of Service $99,344,582 $95,918,213 $92,647,498 8 9 10 11 Rate Derivation: Capacity (Dth/d) Design Determinant Reservation Charge 600,000 7,200,000 $13.798 12 Reservation Charge Adjustment $0.4536 13 Usage-2 and Volumetric Res. Charge $0.4536 14 Minimum Reservation Charge $0.030 Docket No. CP13-___ Exhibit P Schedule 3 Texas Eastern Transmission, LP TEAM 2014 Project Operation and Maintenance Expenses (1) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Account Title Operation: 850 Supervision & Engr. -Labor 850 Supervision & Engr. -M&O 851 Sys.Control & Load Dis. -Labor 851 Sys.Control & Load Dis. -M&O 852 Communication Systems -Labor 852 Communication Systems -M&O 853 Compressor Stations -Labor 853 Compressor Stations -M&O 855 Electric Power 856 Mains -Labor 856 Mains -M&O 857 M & R Station Expense -Labor 857 M & R Station Expense -M&O 858 Transportation by Others 860 Rents -M & O Total Operation Maintenance: 861 Supervision & Engr. -Labor 861 Supervision & Engr. -M&O 862 Structures & Improvements -Labor 862 Structures & Improvements -M&O 863 Mains -Labor 863 Mains -M&O 864 Compressor Stations -Labor 864 Compressor Stations -M&O 865 M & R Stations -Labor 865 M & R Stations -M&O 866 Communication Systems -Labor 866 Communication Systems -M&O 867 Other Equipment -Labor 867 Other Equipment -M&O Total Maintenance Total Direct O&M 35 36 37 38 Administrative and General: Property Insurance @ Pensions & Benefits @ Total Administrative and General 39 Total Operation & Maintenance Expenses 0.20% 23.05% (2) (3) (4) 2014 2015 2016 $37,794 $75,588 $2,537 $5,075 $9,192 $18,383 $58,419 $116,839 $3,043,108 $8,838 $17,675 $0 $0 $0 $1,977 $3,395,425 $39,684 $79,367 $2,664 $5,328 $9,651 $19,303 $61,340 $122,681 $3,195,263 $9,280 $18,559 $0 $0 $0 $2,076 $3,565,196 $41,668 $83,336 $2,797 $5,595 $10,134 $20,268 $64,407 $128,815 $3,355,027 $9,744 $19,487 $0 $0 $0 $2,180 $3,743,456 $9,852 $19,705 $3,501 $7,003 $4,193 $8,385 $50,125 $100,250 $0 $0 $774 $1,548 $716 $1,431 $207,483 $3,602,908 $10,345 $20,690 $3,676 $7,353 $4,402 $8,805 $52,631 $105,262 $0 $0 $813 $1,625 $751 $1,503 $217,857 $3,783,053 $10,862 $21,725 $3,860 $7,721 $4,622 $9,245 $55,263 $110,525 $0 $0 $853 $1,707 $789 $1,578 $228,750 $3,972,206 $1,039,473 $42,855 $1,082,328 $1,091,447 $44,998 $1,136,444 $1,146,019 $47,248 $1,193,267 $4,685,236 $4,919,497 $5,165,472 Docket No. CP13-___ Exhibit P Schedule 4 Texas Eastern Transmission, LP TEAM 2014 Project Depreciation Expense and Other Taxes Line No. (1) (2) (3) (4) Description 2014 2015 2016 1 2 3 4 Depreciation Expense: Depreciable Plant Depreciation Rate Depreciation Exp. 5 Taxes Other than Income: 6 7 8 9 10 11 12 13 Gross Plant: Pennslyvania Ohio Kentucky Tennessee Alabama Mississippi Total Gross Plant 14 15 16 17 18 19 20 21 Ad Valorem Taxes: Pennslyvania Ohio Kentucky Tennessee Alabama Mississippi Total Ad Valorem Taxes 22 23 24 25 26 27 28 29 Franchise Taxes: Pennslyvania Ohio Kentucky Tennessee Alabama Mississippi Total Franchise Taxes 30 31 32 Payroll Taxes: Labor Cost Payroll Taxes 33 34 Total Taxes Other than Income (Lines 21, 29 & 32) $519,736,638 1.22% $6,340,787 $519,736,638 1.22% $6,340,787 $519,736,638 1.22% $6,340,787 $467,005,945 $18,453,587 $7,530,242 $5,477,524 $2,066,658 $19,202,682 $519,736,638 $467,005,945 $18,453,587 $7,530,242 $5,477,524 $2,066,658 $19,202,682 $519,736,638 $467,005,945 $18,453,587 $7,530,242 $5,477,524 $2,066,658 $19,202,682 $519,736,638 0.0000% 4.8919% 0.8518% 1.4955% 0.8234% 3.0660% $0 $902,731 $64,145 $81,914 $17,017 $588,762 $1,654,568 $0 $911,758 $64,786 $82,733 $17,187 $594,649 $976,545 $0 $920,876 $65,434 $83,560 $17,359 $600,596 $986,310 0.0163% 0.0000% 0.0000% 0.0986% 0.0000% 0.0844% $75,975 $0 $0 $5,403 $0 $16,207 $97,585 $76,735 $0 $0 $5,457 $0 $16,369 $76,735 $77,502 $0 $0 $5,512 $0 $16,533 $77,502 $185,941 $15,561 $195,238 $16,339 $205,000 $17,156 $1,767,715 $1,069,619 $1,080,969 8.3690% Docket No. CP13-___ Exhibit P Schedule 5 Texas Eastern Transmission, LP TEAM 2014 Project Rate Base and Return Line No. (1) (2) (3) (4) Description 2014 2015 2016 1 2 3 4 Rate Base: Gas Plant in Service Accumulated Depreciation Net Plant 5 Working Capital: Materials & Supplies @ 6 7 8 $519,736,638 ($3,170,394) $516,566,244 0.5640% Accum. Deferred Income Taxes Total Rate Base Return @ 12.130% $2,931,315 $519,736,638 ($9,511,181) $510,225,457 $3,077,880 $519,736,638 ($15,851,968) $503,884,670 $3,231,774 ($3,603,689) $515,893,870 ($15,101,172) $498,202,165 ($29,983,073) $477,133,372 $62,577,926 $60,431,923 $57,876,278 Docket No. CP13-___ Exhibit P Schedule 6 Texas Eastern Transmission, LP TEAM 2014 Project Federal and State Income Taxes Line No. (1) (2) (3) (4) Description 2014 2015 2016 1 Return 2 3 4 5 Adjustments: Interest and Debt Expense Amortization of Equity AFUDC Total Adjustments 6 Net Taxable Income 7 Federal Income Tax @ 8 Pre-FIT (Lines 6 and 7) 9 State Income Tax @ 35.00% 5.03% $62,577,926 $60,431,923 $57,876,278 ($24,169,628) $262,421 ($23,907,207) ($23,340,771) $262,421 ($23,078,350) ($22,353,698) $262,421 ($22,091,277) $38,670,719 $37,353,573 $35,785,001 $20,822,695 $20,113,462 $19,268,847 $59,493,414 $57,467,035 $55,053,848 $3,150,223 $3,042,925 $2,915,145 Docket No. CP13-___ Exhibit P Schedule 7 Texas Eastern Transmission, LP TEAM 2014 Project Rate of Return (1) Line No. Description 1 Long-Term Debt 2 Preferred 3 Equity 4 Total (2) Capitalization Ratios (3) Component Cost (4) Return Component 41.35% 11.33% 4.685% 0.49% 5.60% 0.027% 58.16% 12.75% 7.415% 100.00% 12.130% Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 1 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 RESERVATION CHARGES Pursuant to Sections 3.2, 3.3, and 3.5 of Rate Schedule FT-1: ACCESS AREA STX-AAB WLA-AAB ELA-AAB ETX-AAB STX-STX STX-WLA STX-ELA STX-ETX WLA-WLA WLA-ELA WLA-ETX ELA-ELA ETX-ETX ETX-ELA MARKET AREA M1-M1 M1-M2 M1-M3 M2-M2 M2-M3 M3-M3 FT-1 RESERVATION CHARGE* $/dth ______________________________ MAXIMUM MINIMUM 6.5800 0.0000 2.6010 0.0000 2.1510 0.0000 1.9650 0.0000 5.5110 0.0000 5.6700 0.0000 6.5880 0.0000 6.5870 0.0000 1.8340 0.0000 2.6070 0.0000 2.6080 0.0000 2.1550 0.0000 1.9690 0.0000 2.1560 0.0000 MAXIMUM 4.1720 7.7510 10.1930 6.0120 8.5930 4.8760 MINIMUM 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 * Reservation Charge reflects a storage surcharge of: Issued on: Effective on: FT-1 RESERVATION CHARGE ADJUSTMENT $/dth ______________________________ MAXIMUM MINIMUM 0.2163 0.0000 0.0855 0.0000 0.0707 0.0000 0.0646 0.0000 0.1812 0.0000 0.1864 0.0000 0.2166 0.0000 0.2166 0.0000 0.0602 0.0000 0.0857 0.0000 0.0857 0.0000 0.0709 0.0000 0.0647 0.0000 0.0709 0.0000 MAXIMUM 0.1372 0.2548 0.3351 0.1977 0.2825 0.1603 0.0970 MINIMUM 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 2 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 USAGE CHARGES ZONE RATE $/dth Pursuant to Sections 3.2 and 3.3 of Rate Schedule FT-1: STX WLA ELA ETX M1 M2 0.0103 0.0112 0.0170 0.0169 0.0341 0.0563 0.0717 0.0112 0.0073 0.0123 0.0124 0.0295 0.0517 0.0671 0.0170 0.0123 0.0111 0.0112 0.0283 0.0505 0.0659 0.0169 0.0124 0.0112 0.0111 0.0283 0.0505 0.0659 0.0341 0.0295 0.0283 0.0283 0.0172 0.0394 0.0548 0.0563 0.0517 0.0505 0.0505 0.0394 0.0286 0.0440 0.0717 0.0671 0.0659 0.0659 0.0548 0.0440 0.0216 USAGE-1 - MINIMUM from STX from WLA from ELA from ETX from M1 from M2 from M3 0.0061 0.0070 0.0127 0.0126 0.0256 0.0478 0.0632 0.0070 0.0031 0.0080 0.0081 0.0210 0.0432 0.0586 0.0127 0.0080 0.0068 0.0069 0.0198 0.0420 0.0574 0.0126 0.0081 0.0069 0.0068 0.0198 0.0420 0.0574 0.0256 0.0210 0.0198 0.0198 0.0130 0.0352 0.0506 0.0478 0.0432 0.0420 0.0420 0.0352 0.0244 0.0398 0.0632 0.0586 0.0574 0.0574 0.0506 0.0398 0.0174 USAGE-1 - BACKHAUL MAXIMUM from STX 0.0103 from WLA 0.0112 from ELA 0.0170 from ETX 0.0169 from M1 0.0310 from M2 0.0513 from M3 0.0653 0.0073 0.0123 0.0124 0.0264 0.0467 0.0607 0.0111 0.0112 0.0252 0.0455 0.0595 0.0111 0.0252 0.0455 0.0595 0.0141 0.0344 0.0484 0.0245 0.0385 0.0181 USAGE-1 - BACKHAUL MINIMUM from STX 0.0061 from WLA 0.0070 from ELA 0.0127 from ETX 0.0126 from M1 0.0225 from M2 0.0428 from M3 0.0568 0.0031 0.0080 0.0081 0.0179 0.0382 0.0522 0.0068 0.0069 0.0167 0.0370 0.0510 0.0068 0.0167 0.0370 0.0510 0.0099 0.0302 0.0442 0.0203 0.0343 0.0139 USAGE-2 0.1148 0.1148 0.1148 0.2692 0.4090 0.5047 0.1148 ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: M3 USAGE-1 - MAXIMUM from STX from WLA from ELA from ETX from M1 from M2 from M3 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 3 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 Pursuant to Section 3.14 of the General Terms and Conditions: FT-1 CAPACITY RELEASE RESERVATION CHARGE ADJUSTMENT/ CHARGES RESERVATION CHARGE* VOLUMETRIC RESERVATION CHARGE* $/dth $/dth ______________________________ ______________________________ NONNONACCESS AREA MILEAGE MILEAGE TOTAL MILEAGE MILEAGE TOTAL STX-AAB 4.1500 2.4300 6.5800 0.1364 0.0799 0.2163 WLA-AAB 1.3100 1.2910 2.6010 0.0431 0.0424 0.0855 ELA-AAB 0.9140 1.2370 2.1510 0.0301 0.0406 0.0707 ETX-AAB 0.8310 1.1340 1.9650 0.0273 0.0373 0.0646 STX-STX 3.0790 2.4320 5.5110 0.1012 0.0800 0.1812 STX-WLA 3.2360 2.4340 5.6700 0.1064 0.0800 0.1864 STX-ELA 4.1510 2.4370 6.5880 0.1365 0.0801 0.2166 STX-ETX 4.1500 2.4370 6.5870 0.1364 0.0802 0.2166 WLA-WLA 0.3970 1.4370 1.8340 0.0131 0.0471 0.0602 WLA-ELA 1.3110 1.2960 2.6070 0.0431 0.0426 0.0857 WLA-ETX 1.3120 1.2960 2.6080 0.0431 0.0426 0.0857 ELA-ELA 0.9140 1.2410 2.1550 0.0301 0.0408 0.0709 ETX-ETX 0.8310 1.1380 1.9690 0.0273 0.0374 0.0647 ETX-ELA 0.9150 1.2410 2.1560 0.0301 0.0408 0.0709 MARKET AREA M1-M1 M1-M2 M1-M3 M2-M2 M2-M3 M3-M3 1.7340 5.3100 7.7500 3.5740 6.1530 2.4400 2.4380 2.4410 2.4430 2.4380 2.4400 2.4360 4.1720 7.7510 10.1930 6.0120 8.5930 4.8760 0.0570 0.1746 0.2548 0.1175 0.2023 0.0802 *Rates are exclusive of surcharges which can also be recovered. Issued on: Effective on: 0.0802 0.0802 0.0803 0.0802 0.0802 0.0801 0.1372 0.2548 0.3351 0.1977 0.2825 0.1603 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 4 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 Pursuant to Section 3.14 of the General Terms and Conditions: FT-1 CAPACITY RELEASE CHARGES $/DTH USAGE-1 RATE* MILEAGE from STX from WLA from ELA from ETX from M1 from M2 from M3 NON-MILEAGE from STX from WLA from ELA from ETX from M1 from M2 from M3 TOTAL from STX from WLA from ELA from ETX from M1 from M2 from M3 USAGE-1 BACKHAUL RATE* MILEAGE from STX from WLA from ELA from ETX from M1 from M2 from M3 NON-MILEAGE from STX from WLA from ELA from ETX from M1 from M2 from M3 TOTAL from STX from WLA from ELA from ETX from M1 from M2 from M3 STX WLA ELA 0.0061 0.0070 0.0127 0.0126 0.0256 0.0478 0.0632 0.0070 0.0036 0.0080 0.0081 0.0210 0.0432 0.0586 0.0127 0.0080 0.0068 0.0069 0.0198 0.0420 0.0574 0.0042 0.0042 0.0043 0.0043 0.0085 0.0085 0.0085 0.0042 0.0037 0.0043 0.0043 0.0085 0.0085 0.0085 0.0103 0.0112 0.0170 0.0169 0.0341 0.0563 0.0717 ETX M1 M2 M3 0.0126 0.0081 0.0069 0.0068 0.0198 0.0420 0.0574 0.0256 0.0210 0.0198 0.0198 0.0130 0.0352 0.0506 0.0478 0.0432 0.0420 0.0420 0.0352 0.0244 0.0398 0.0632 0.0586 0.0574 0.0574 0.0506 0.0398 0.0174 0.0043 0.0043 0.0043 0.0043 0.0085 0.0085 0.0085 0.0043 0.0043 0.0043 0.0043 0.0085 0.0085 0.0085 0.0085 0.0085 0.0085 0.0085 0.0042 0.0042 0.0042 0.0085 0.0085 0.0085 0.0085 0.0042 0.0042 0.0042 0.0085 0.0085 0.0085 0.0085 0.0042 0.0042 0.0042 0.0112 0.0073 0.0123 0.0124 0.0295 0.0517 0.0671 0.0170 0.0123 0.0111 0.0112 0.0283 0.0505 0.0659 0.0169 0.0124 0.0112 0.0111 0.0283 0.0505 0.0659 0.0341 0.0295 0.0283 0.0283 0.0172 0.0394 0.0548 0.0563 0.0517 0.0505 0.0505 0.0394 0.0286 0.0440 0.0717 0.0671 0.0659 0.0659 0.0548 0.0440 0.0216 STX WLA ELA ETX M1 M2 M3 0.0061 0.0070 0.0127 0.0126 0.0225 0.0428 0.0568 0.0031 0.0080 0.0081 0.0179 0.0382 0.0522 0.0068 0.0069 0.0167 0.0370 0.0510 0.0068 0.0167 0.0370 0.0510 0.0099 0.0302 0.0442 0.0203 0.0343 0.0139 0.0042 0.0042 0.0043 0.0043 0.0085 0.0085 0.0085 0.0042 0.0043 0.0043 0.0085 0.0085 0.0085 0.0043 0.0043 0.0085 0.0085 0.0085 0.0043 0.0085 0.0085 0.0085 0.0042 0.0042 0.0042 0.0042 0.0042 0.0042 0.0103 0.0112 0.0170 0.0169 0.0310 0.0513 0.0653 0.0073 0.0123 0.0124 0.0264 0.0467 0.0607 0.0111 0.0112 0.0252 0.0455 0.0595 0.0111 0.0252 0.0455 0.0595 0.0141 0.0344 0.0484 0.0245 0.0385 0.0181 *Rates are exclusive of surcharges which can also be recovered. Issued on: Effective on: Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 5 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 INCREMENTAL FACILITY CHARGE PURSUANT TO SECTION 3.4 OF RATE SCHEDULE FT-1: INCREMENTAL FACILITY CHARGE $/dth Maximum Minimum To applicable customers converting from Rate Schedule FTS in Docket No. CP82-446: RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT 0.6600 0.0217 0.0000 0.0000 3.0110 0.0990 0.0000 0.0000 Customer Bay State Gas Company Boston Gas Company d/b/a National Grid Colonial Gas Company d/b/a National Grid Connecticut Natural Gas Corporation Town of Middleborough, Massachusetts New Jersey Natural Gas Company Northern Utilities, Inc. Southern Connecticut Gas Company Yankee Gas Services Company dth 4,235 21,394 1,951 6,340 116 1,060 965 4,922 6,066 To applicable customers converting from Rate Schedule FTS-4 in Docket No. CP87-4: RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT Customer Brooklyn Union Gas Company d/b/a National Grid KeySpan Gas East Corporation d/b/a National Grid New Jersey Natural Gas Company Pivotal Utility Holdings, Inc. Public Service Electric & Gas Company dth 27,500 22,500 40,000 10,000 40,000 To applicable customers converting from Rate Schedule FTS-5 in Docket No. CP87-312:RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT Customer Colonial Gas Company d/b/a National Grid UGI Central Penn Gas, Inc. Yankee Gas Services Company Issued on: Effective on: 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 dth 4,231 3,015 To applicable customers converting from Rate Schedule FTS-8 in Docket No. CP85-803:RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT Customer Yankee Gas Services Company 0.0000 0.0000 dth 2,326 4,000 125 To applicable customers converting from Rate Schedule FTS-7 in Docket No. CP80-170:RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT Customer Connecticut Natural Gas Corporation Yankee Gas Services Company 0.0000 0.0000 dth 39 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 6 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Maximum Minimum Docket No. CP00-404-000(Columbia Liberty Expansion): __________________________________________________ Customer ______________________________________ Liberty Electric Power, LLC dth _______ 84,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 4.4610 0.1467 0.1467 0.1180 0.1467 0.0000 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE APPLICABLE SHRINKAGE PERCENTAGE Effective Year Around: June 1 through May 31 0.00 % ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 7 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Docket No. CP02-32, TIME Project: __________________________________________________ Customer ______________________________ dth ______ New Jersey Natural Gas Company 100,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Maximum _______ Minimum _______ 10.5510 0.3469 0.3469 0.0000 0.3469 0.0000 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST 0.2917 -0.5250 -0.2333 ASA SURCHARGE -1.7781 APPLICABLE SHRINKAGE PERCENTAGE December 1 through November 30: In-Path Out-of-Path 3.27% 5.21% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 8 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON NOVEMBER 1, 2008: Docket No. CP06-115, TIME II Project: __________________________________________________ Customer ______________________________ dth ______ New Jersey Natural Gas Company PSEG Power, LLC 100,000 50,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Maximum _______ Minimum _______ 19.9110 0.6545 0.6545 0.1110 0.0036 0.6545 0.0036 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST 1.9722 -2.6030 -0.6308 ASA SURCHARGE -1.3586 APPLICABLE SHRINKAGE PERCENTAGE December 1 through November 30: In-Path Out-of-Path 2.44% 3.64% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 9 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Maximum Minimum 6.5600 0.2156 0.2156 0.080 Docket No. CP92-165 (North Carolina Project): ________________________________________________________ Customer ______________________________________ Dominion Transmission, Inc. dth ______ 30,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE 0.2156 0.0000 APPLICABLE SHRINKAGE PERCENTAGE Effective Year Around: June 1 through May 31 0.00 % ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 10 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Maximum Minimum Docket No. CP94-654 (Riverside Storage Project): _____________________________________________ Customer ______________________________________ PECO Energy Company UGI Utilities, Inc. dth ______ 29,210 4,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 10.4390 0.3432 0.3432 0.000 0.0000 0.3432 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE APPLICABLE SHRINKAGE PERCENTAGE Effective Year Around: June 1 through May 31 0.00 % ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 11 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Maximum Minimum 1.9410 0.0638 0.0638 0.0000 0.0638 0.0000 Docket No. CP95-76 and CP95-2 (Philadelphia Lateral Expansion): ____________________________________________________ Customer ______________________________________ Grays Ferry Cogeneration Partnership Sun Company, Inc. dth ______ 15,000 15,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE APPLICABLE SHRINKAGE PERCENTAGE Effective Year Around: June 1 through May 31 0.00 % ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 12 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Maximum Minimum Docket No. CP97-276 (1997 Line No. 1-A Expansion): __________________________________________________ Customer ______________________________________ PECO Energy Company Paulsboro Refining Company LLC dth ______ 93,000 8,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 1.5830 0.0520 0.0520 0.0000 0.0520 0.0000 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE APPLICABLE SHRINKAGE PERCENTAGE Effective Year Around: June 1 through May 31 0.00 % ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 13 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Maximum Minimum Docket No. CP99-621 (Ironwood Lateral): __________________________________________________ Customer ____________________________________ PPL Energy Plus, LLC dth _______ 120,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: Effective October 1 through April 30 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 0.6040 0.0199 0.0199 0.0000 Effective May 1 through September 30 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 1.2690 0.0417 0.0417 0.0000 Effective October 1 through April 30 VOLUMETRIC RESERVATION CHARGE 0.0199 0.0000 Effective May 1 through September 30 VOLUMETRIC RESERVATION CHARGE 0.0417 0.0000 0.0000 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: APPLICABLE SHRINKAGE PERCENTAGE Effective Year Around: October 1 through September 30 0.00 % ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 14 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Maximum Minimum Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 5.5500 0.1824 0.1824 0.0000 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE 0.1824 0.0000 Docket No. CP02-381 (M1 Expansion Project): BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST APPLICABLE SHRINKAGE PERCENTAGE (LAUF) Effective Year Around: December 1 through November 30 0.7921 -1.6630 -0.8709 0.40% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 15 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON NOVEMBER 1, 2010: Docket No. CP09-68-000, TIME III Project: ______________________________________ Customer ______________________________ dth ______ CenterPoint Energy Services, Inc. PPL Energy Plus, LLC 25,000 30,000 Maximum _______ Minimum _______ $21.7860 $-0.0099 $0.7064 $0.7163 $0.0480 Rates Pursuant to Section 3.2(C&D) of Rate Schedule FT-1: RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT $0.0016 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE $0.7163 BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST 1.0597 -1.4960 -0.4363 ASA USAGE SURCHARGE -0.0099 APPLICABLE SHRINKAGE PERCENTAGE December 1 through November 30: $0.0016 1.59% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 16 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON NOVEMBER 1, 2010: Docket No. CP09-68-000, TEMAX Project: ___________________________________ Customer ______________________________ dth ______ ConocoPhillips Company 395,000 Maximum _______ Minimum _______ $18.9590 $-0.0001 $0.6232 $0.6233 $0.0710 Rates Pursuant to Section 3.2(C&D) of Rate Schedule FT-1: RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT $0.0023 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE $0.6233 BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST 1.6032 -1.0810 0.5222 ASA USAGE SURCHARGE -0.0001 $0.0023 APPLICABLE SHRINKAGE PERCENTAGES P RIMARY RECEIPT POINT TO A PRIMARY OR SECONDARY DELIVERY POINT IN M2 OR M3 December 1 through November 30: 1.15% SECONDARY RECEIPT POINT TO A PRIMARY OR SECONDARY DELIVERY POINT IN M2 OR M3 December 1 through March 31: April 1 through November 30: 3.91% 3.48% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 17 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth FIRM MARIETTA EXTENSION TRANSPORTATION SERVICE: _______________________________________________ Marietta Extension Charge applicable to all Customers contracted for firm transportation on the Marietta Extension with the exception of TEMAX and Time III, in addition to other applicable charges Rates Pursuant to Section 3.2(E&F) of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Maximum _______ Minimum _______ $3.1240 $0.1027 $0.1027 $0.0000 $0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE $0.1027 $0.0000 MARIETTA EXTENSION APPLICABLE SHRINKAGE PERCENTAGE (LAUF) _________________________________________________________ December 1 through November 30: 0.27% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 18 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON NOVEMBER 1, 2012: Docket No. CP11-67-001, TEAM 2012 Project: ______________________________________ Customer ______________________________ Range Resources-Appalachia, LLC Chesapeake Utilities Corporation dth ______ 150,000 50,000 Maximum _______ Minimum _______ $17.4990 $0.0000 $0.5753 $0.5753 $0.0270 Rates Pursuant to Section 3.2(C&D) of Rate Schedule FT-1: RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT $0.0010 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE $0.5753 BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST 1.3677 0.0000 1.3677 ASA USAGE SURCHARGE 0.0000 APPLICABLE SHRINKAGE PERCENTAGE December 1 through November 30: $0.0010 1.93% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 19 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON NOVEMBER 1, 2012: Docket No. CP11-508-000, Philadelphia Lateral Expansion Project: ______________________________________ Customer ______________________________ Grays Ferry Cogeneration Partnership Paulsboro Refining Company LLC dth ______ 20,000 7,000 Rates Pursuant to Section 3.2(C&D) of Rate Schedule FT-1: RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Maximum _______ Minimum _______ $8.3910 $0.0000 $0.2759 $0.2759 $0.0000 $0.2759 $0.0000 $0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST APPLICABLE SHRINKAGE PERCENTAGE (LAUF) December 1 through November 30: 0.0467 0.0000 0.0467 0.02% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 Texas Eastern Transmission, LP Part 4 - Statements of Rates 2. Rate Schedule FT-1 Version 20.0.0 Page 20 of 20 FERC Gas Tariff Eighth Revised Volume No. 1 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON NOVEMBER 1, 2014: Docket No. CP13-XXX-000, TEAM 2014 Project: ______________________________________ Customer ______________________________ Chevron U.S.A. Inc. EQT Energy, LLC dth ______ 300,000 300,000 Maximum _______ Minimum _______ $13.7980 $0.0000 $0.4536 $0.4536 $0.0300 Rates Pursuant to Section 3.2(C&D) of Rate Schedule FT-1: RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT $0.0010 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE $0.4536 BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST 0.4227 0.0000 0.4227 ASA USAGE SURCHARGE 0.0000 APPLICABLE SHRINKAGE PERCENTAGE December 1 through November 30: $0.0010 1.67% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 1 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 RESERVATION CHARGES Pursuant to Sections 3.2, 3.3, and 3.5 of Rate Schedule FT-1: ACCESS AREA STX-AAB WLA-AAB ELA-AAB ETX-AAB STX-STX STX-WLA STX-ELA STX-ETX WLA-WLA WLA-ELA WLA-ETX ELA-ELA ETX-ETX ETX-ELA MARKET AREA M1-M1 M1-M2 M1-M3 M2-M2 M2-M3 M3-M3 FT-1 RESERVATION CHARGE* $/dth ______________________________ MAXIMUM MINIMUM 6.5800 0.0000 2.6010 0.0000 2.1510 0.0000 1.9650 0.0000 5.5110 0.0000 5.6700 0.0000 6.5880 0.0000 6.5870 0.0000 1.8340 0.0000 2.6070 0.0000 2.6080 0.0000 2.1550 0.0000 1.9690 0.0000 2.1560 0.0000 MAXIMUM 4.1720 7.7510 10.1930 6.0120 8.5930 4.8760 MINIMUM 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 * Reservation Charge reflects a storage surcharge of: Issued on: Effective on: FT-1 RESERVATION CHARGE ADJUSTMENT $/dth ______________________________ MAXIMUM MINIMUM 0.2163 0.0000 0.0855 0.0000 0.0707 0.0000 0.0646 0.0000 0.1812 0.0000 0.1864 0.0000 0.2166 0.0000 0.2166 0.0000 0.0602 0.0000 0.0857 0.0000 0.0857 0.0000 0.0709 0.0000 0.0647 0.0000 0.0709 0.0000 MAXIMUM 0.1372 0.2548 0.3351 0.1977 0.2825 0.1603 0.0970 MINIMUM 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 2 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 USAGE CHARGES ZONE RATE $/dth Pursuant to Sections 3.2 and 3.3 of Rate Schedule FT-1: STX WLA ELA ETX M1 M2 0.0103 0.0112 0.0170 0.0169 0.0341 0.0563 0.0717 0.0112 0.0073 0.0123 0.0124 0.0295 0.0517 0.0671 0.0170 0.0123 0.0111 0.0112 0.0283 0.0505 0.0659 0.0169 0.0124 0.0112 0.0111 0.0283 0.0505 0.0659 0.0341 0.0295 0.0283 0.0283 0.0172 0.0394 0.0548 0.0563 0.0517 0.0505 0.0505 0.0394 0.0286 0.0440 0.0717 0.0671 0.0659 0.0659 0.0548 0.0440 0.0216 USAGE-1 - MINIMUM from STX from WLA from ELA from ETX from M1 from M2 from M3 0.0061 0.0070 0.0127 0.0126 0.0256 0.0478 0.0632 0.0070 0.0031 0.0080 0.0081 0.0210 0.0432 0.0586 0.0127 0.0080 0.0068 0.0069 0.0198 0.0420 0.0574 0.0126 0.0081 0.0069 0.0068 0.0198 0.0420 0.0574 0.0256 0.0210 0.0198 0.0198 0.0130 0.0352 0.0506 0.0478 0.0432 0.0420 0.0420 0.0352 0.0244 0.0398 0.0632 0.0586 0.0574 0.0574 0.0506 0.0398 0.0174 USAGE-1 - BACKHAUL MAXIMUM from STX 0.0103 from WLA 0.0112 from ELA 0.0170 from ETX 0.0169 from M1 0.0310 from M2 0.0513 from M3 0.0653 0.0073 0.0123 0.0124 0.0264 0.0467 0.0607 0.0111 0.0112 0.0252 0.0455 0.0595 0.0111 0.0252 0.0455 0.0595 0.0141 0.0344 0.0484 0.0245 0.0385 0.0181 USAGE-1 - BACKHAUL MINIMUM from STX 0.0061 from WLA 0.0070 from ELA 0.0127 from ETX 0.0126 from M1 0.0225 from M2 0.0428 from M3 0.0568 0.0031 0.0080 0.0081 0.0179 0.0382 0.0522 0.0068 0.0069 0.0167 0.0370 0.0510 0.0068 0.0167 0.0370 0.0510 0.0099 0.0302 0.0442 0.0203 0.0343 0.0139 USAGE-2 0.1148 0.1148 0.1148 0.2692 0.4090 0.5047 0.1148 ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: M3 USAGE-1 - MAXIMUM from STX from WLA from ELA from ETX from M1 from M2 from M3 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 3 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 Pursuant to Section 3.14 of the General Terms and Conditions: FT-1 CAPACITY RELEASE RESERVATION CHARGE ADJUSTMENT/ CHARGES RESERVATION CHARGE* VOLUMETRIC RESERVATION CHARGE* $/dth $/dth ______________________________ ______________________________ NONNONACCESS AREA MILEAGE MILEAGE TOTAL MILEAGE MILEAGE TOTAL STX-AAB 4.1500 2.4300 6.5800 0.1364 0.0799 0.2163 WLA-AAB 1.3100 1.2910 2.6010 0.0431 0.0424 0.0855 ELA-AAB 0.9140 1.2370 2.1510 0.0301 0.0406 0.0707 ETX-AAB 0.8310 1.1340 1.9650 0.0273 0.0373 0.0646 STX-STX 3.0790 2.4320 5.5110 0.1012 0.0800 0.1812 STX-WLA 3.2360 2.4340 5.6700 0.1064 0.0800 0.1864 STX-ELA 4.1510 2.4370 6.5880 0.1365 0.0801 0.2166 STX-ETX 4.1500 2.4370 6.5870 0.1364 0.0802 0.2166 WLA-WLA 0.3970 1.4370 1.8340 0.0131 0.0471 0.0602 WLA-ELA 1.3110 1.2960 2.6070 0.0431 0.0426 0.0857 WLA-ETX 1.3120 1.2960 2.6080 0.0431 0.0426 0.0857 ELA-ELA 0.9140 1.2410 2.1550 0.0301 0.0408 0.0709 ETX-ETX 0.8310 1.1380 1.9690 0.0273 0.0374 0.0647 ETX-ELA 0.9150 1.2410 2.1560 0.0301 0.0408 0.0709 MARKET AREA M1-M1 M1-M2 M1-M3 M2-M2 M2-M3 M3-M3 1.7340 5.3100 7.7500 3.5740 6.1530 2.4400 2.4380 2.4410 2.4430 2.4380 2.4400 2.4360 4.1720 7.7510 10.1930 6.0120 8.5930 4.8760 0.0570 0.1746 0.2548 0.1175 0.2023 0.0802 *Rates are exclusive of surcharges which can also be recovered. Issued on: Effective on: 0.0802 0.0802 0.0803 0.0802 0.0802 0.0801 0.1372 0.2548 0.3351 0.1977 0.2825 0.1603 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 4 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 Pursuant to Section 3.14 of the General Terms and Conditions: FT-1 CAPACITY RELEASE CHARGES $/DTH USAGE-1 RATE* MILEAGE from STX from WLA from ELA from ETX from M1 from M2 from M3 NON-MILEAGE from STX from WLA from ELA from ETX from M1 from M2 from M3 TOTAL from STX from WLA from ELA from ETX from M1 from M2 from M3 USAGE-1 BACKHAUL RATE* MILEAGE from STX from WLA from ELA from ETX from M1 from M2 from M3 NON-MILEAGE from STX from WLA from ELA from ETX from M1 from M2 from M3 TOTAL from STX from WLA from ELA from ETX from M1 from M2 from M3 STX WLA ELA 0.0061 0.0070 0.0127 0.0126 0.0256 0.0478 0.0632 0.0070 0.0036 0.0080 0.0081 0.0210 0.0432 0.0586 0.0127 0.0080 0.0068 0.0069 0.0198 0.0420 0.0574 0.0042 0.0042 0.0043 0.0043 0.0085 0.0085 0.0085 0.0042 0.0037 0.0043 0.0043 0.0085 0.0085 0.0085 0.0103 0.0112 0.0170 0.0169 0.0341 0.0563 0.0717 ETX M1 M2 M3 0.0126 0.0081 0.0069 0.0068 0.0198 0.0420 0.0574 0.0256 0.0210 0.0198 0.0198 0.0130 0.0352 0.0506 0.0478 0.0432 0.0420 0.0420 0.0352 0.0244 0.0398 0.0632 0.0586 0.0574 0.0574 0.0506 0.0398 0.0174 0.0043 0.0043 0.0043 0.0043 0.0085 0.0085 0.0085 0.0043 0.0043 0.0043 0.0043 0.0085 0.0085 0.0085 0.0085 0.0085 0.0085 0.0085 0.0042 0.0042 0.0042 0.0085 0.0085 0.0085 0.0085 0.0042 0.0042 0.0042 0.0085 0.0085 0.0085 0.0085 0.0042 0.0042 0.0042 0.0112 0.0073 0.0123 0.0124 0.0295 0.0517 0.0671 0.0170 0.0123 0.0111 0.0112 0.0283 0.0505 0.0659 0.0169 0.0124 0.0112 0.0111 0.0283 0.0505 0.0659 0.0341 0.0295 0.0283 0.0283 0.0172 0.0394 0.0548 0.0563 0.0517 0.0505 0.0505 0.0394 0.0286 0.0440 0.0717 0.0671 0.0659 0.0659 0.0548 0.0440 0.0216 STX WLA ELA ETX M1 M2 M3 0.0061 0.0070 0.0127 0.0126 0.0225 0.0428 0.0568 0.0031 0.0080 0.0081 0.0179 0.0382 0.0522 0.0068 0.0069 0.0167 0.0370 0.0510 0.0068 0.0167 0.0370 0.0510 0.0099 0.0302 0.0442 0.0203 0.0343 0.0139 0.0042 0.0042 0.0043 0.0043 0.0085 0.0085 0.0085 0.0042 0.0043 0.0043 0.0085 0.0085 0.0085 0.0043 0.0043 0.0085 0.0085 0.0085 0.0043 0.0085 0.0085 0.0085 0.0042 0.0042 0.0042 0.0042 0.0042 0.0042 0.0103 0.0112 0.0170 0.0169 0.0310 0.0513 0.0653 0.0073 0.0123 0.0124 0.0264 0.0467 0.0607 0.0111 0.0112 0.0252 0.0455 0.0595 0.0111 0.0252 0.0455 0.0595 0.0141 0.0344 0.0484 0.0245 0.0385 0.0181 *Rates are exclusive of surcharges which can also be recovered. Issued on: Effective on: 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 5 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 INCREMENTAL FACILITY CHARGE PURSUANT TO SECTION 3.4 OF RATE SCHEDULE FT-1: INCREMENTAL FACILITY CHARGE $/dth Maximum Minimum To applicable customers converting from Rate Schedule FTS in Docket No. CP82-446: RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT 0.6600 0.0217 0.0000 0.0000 3.0110 0.0990 0.0000 0.0000 Customer Bay State Gas Company Boston Gas Company d/b/a National Grid Colonial Gas Company d/b/a National Grid Connecticut Natural Gas Corporation Town of Middleborough, Massachusetts New Jersey Natural Gas Company Northern Utilities, Inc. Southern Connecticut Gas Company Yankee Gas Services Company dth 4,235 21,394 1,951 6,340 116 1,060 965 4,922 6,066 To applicable customers converting from Rate Schedule FTS-4 in Docket No. CP87-4: RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT Customer Brooklyn Union Gas Company d/b/a National Grid KeySpan Gas East Corporation d/b/a National Grid New Jersey Natural Gas Company Pivotal Utility Holdings, Inc. Public Service Electric & Gas Company dth 27,500 22,500 40,000 10,000 40,000 To applicable customers converting from Rate Schedule FTS-5 in Docket No. CP87-312:RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT Customer Colonial Gas Company d/b/a National Grid UGI Central Penn Gas, Inc. Yankee Gas Services Company Issued on: Effective on: 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 dth 4,231 3,015 To applicable customers converting from Rate Schedule FTS-8 in Docket No. CP85-803:RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT Customer Yankee Gas Services Company 0.0000 0.0000 dth 2,326 4,000 125 To applicable customers converting from Rate Schedule FTS-7 in Docket No. CP80-170:RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT Customer Connecticut Natural Gas Corporation Yankee Gas Services Company 0.0000 0.0000 dth 39 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 6 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Maximum Minimum Docket No. CP00-404-000(Columbia Liberty Expansion): __________________________________________________ Customer ______________________________________ Liberty Electric Power, LLC dth _______ 84,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 4.4610 0.1467 0.1467 0.1180 0.1467 0.0000 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE APPLICABLE SHRINKAGE PERCENTAGE Effective Year Around: June 1 through May 31 0.00 % ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 7 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Docket No. CP02-32, TIME Project: __________________________________________________ Customer ______________________________ dth ______ New Jersey Natural Gas Company 100,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Maximum _______ Minimum _______ 10.5510 0.3469 0.3469 0.0000 0.3469 0.0000 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST 0.2917 -0.5250 -0.2333 ASA SURCHARGE -1.7781 APPLICABLE SHRINKAGE PERCENTAGE December 1 through November 30: In-Path Out-of-Path 3.27% 5.21% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 8 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON NOVEMBER 1, 2008: Docket No. CP06-115, TIME II Project: __________________________________________________ Customer ______________________________ dth ______ New Jersey Natural Gas Company PSEG Power, LLC 100,000 50,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Maximum _______ Minimum _______ 19.9110 0.6545 0.6545 0.1110 0.0036 0.6545 0.0036 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST 1.9722 -2.6030 -0.6308 ASA SURCHARGE -1.3586 APPLICABLE SHRINKAGE PERCENTAGE December 1 through November 30: In-Path Out-of-Path 2.44% 3.64% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 9 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Maximum Minimum 6.5600 0.2156 0.2156 0.080 Docket No. CP92-165 (North Carolina Project): ________________________________________________________ Customer ______________________________________ Dominion Transmission, Inc. dth ______ 30,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE 0.2156 0.0000 APPLICABLE SHRINKAGE PERCENTAGE Effective Year Around: June 1 through May 31 0.00 % ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 10 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Maximum Minimum Docket No. CP94-654 (Riverside Storage Project): _____________________________________________ Customer ______________________________________ PECO Energy Company UGI Utilities, Inc. dth ______ 29,210 4,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 10.4390 0.3432 0.3432 0.000 0.0000 0.3432 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE APPLICABLE SHRINKAGE PERCENTAGE Effective Year Around: June 1 through May 31 0.00 % ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 11 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Maximum Minimum 1.9410 0.0638 0.0638 0.0000 0.0638 0.0000 Docket No. CP95-76 and CP95-2 (Philadelphia Lateral Expansion): ____________________________________________________ Customer ______________________________________ Grays Ferry Cogeneration Partnership Sun Company, Inc. dth ______ 15,000 15,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE APPLICABLE SHRINKAGE PERCENTAGE Effective Year Around: June 1 through May 31 0.00 % ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 12 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Maximum Minimum Docket No. CP97-276 (1997 Line No. 1-A Expansion): __________________________________________________ Customer ______________________________________ PECO Energy Company Paulsboro Refining Company LLC dth ______ 93,000 8,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 1.5830 0.0520 0.0520 0.0000 0.0520 0.0000 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE APPLICABLE SHRINKAGE PERCENTAGE Effective Year Around: June 1 through May 31 0.00 % ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 13 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Maximum Minimum Docket No. CP99-621 (Ironwood Lateral): __________________________________________________ Customer ____________________________________ PPL Energy Plus, LLC dth _______ 120,000 Rates Pursuant to Section 3.2 of Rate Schedule FT-1: Effective October 1 through April 30 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 0.6040 0.0199 0.0199 0.0000 Effective May 1 through September 30 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 1.2690 0.0417 0.0417 0.0000 Effective October 1 through April 30 VOLUMETRIC RESERVATION CHARGE 0.0199 0.0000 Effective May 1 through September 30 VOLUMETRIC RESERVATION CHARGE 0.0417 0.0000 0.0000 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: APPLICABLE SHRINKAGE PERCENTAGE Effective Year Around: October 1 through September 30 0.00 % ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 14 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: Maximum Minimum Rates Pursuant to Section 3.2 of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT 5.5500 0.1824 0.1824 0.0000 0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE 0.1824 0.0000 Docket No. CP02-381 (M1 Expansion Project): BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST APPLICABLE SHRINKAGE PERCENTAGE (LAUF) Effective Year Around: December 1 through November 30 0.7921 -1.6630 -0.8709 0.40% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 15 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON NOVEMBER 1, 2010: Docket No. CP09-68-000, TIME III Project: ______________________________________ Customer ______________________________ dth ______ CenterPoint Energy Services, Inc. PPL Energy Plus, LLC 25,000 30,000 Maximum _______ Minimum _______ $21.7860 $-0.0099 $0.7064 $0.7163 $0.0480 Rates Pursuant to Section 3.2(C&D) of Rate Schedule FT-1: RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT $0.0016 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE $0.7163 BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST 1.0597 -1.4960 -0.4363 ASA USAGE SURCHARGE -0.0099 APPLICABLE SHRINKAGE PERCENTAGE December 1 through November 30: $0.0016 1.59% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 16 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON NOVEMBER 1, 2010: Docket No. CP09-68-000, TEMAX Project: ___________________________________ Customer ______________________________ dth ______ ConocoPhillips Company 395,000 Maximum _______ Minimum _______ $18.9590 $-0.0001 $0.6232 $0.6233 $0.0710 Rates Pursuant to Section 3.2(C&D) of Rate Schedule FT-1: RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT $0.0023 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE $0.6233 BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST 1.6032 -1.0810 0.5222 ASA USAGE SURCHARGE -0.0001 $0.0023 APPLICABLE SHRINKAGE PERCENTAGES P RIMARY RECEIPT POINT TO A PRIMARY OR SECONDARY DELIVERY POINT IN M2 OR M3 December 1 through November 30: 1.15% SECONDARY RECEIPT POINT TO A PRIMARY OR SECONDARY DELIVERY POINT IN M2 OR M3 December 1 through March 31: April 1 through November 30: 3.91% 3.48% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 17 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth FIRM MARIETTA EXTENSION TRANSPORTATION SERVICE: _______________________________________________ Marietta Extension Charge applicable to all Customers contracted for firm transportation on the Marietta Extension with the exception of TEMAX and Time III, in addition to other applicable charges Rates Pursuant to Section 3.2(E&F) of Rate Schedule FT-1: RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Maximum _______ Minimum _______ $3.1240 $0.1027 $0.1027 $0.0000 $0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE $0.1027 $0.0000 MARIETTA EXTENSION APPLICABLE SHRINKAGE PERCENTAGE (LAUF) _________________________________________________________ December 1 through November 30: 0.27% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 18 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON NOVEMBER 1, 2012: Docket No. CP11-67-001, TEAM 2012 Project: ______________________________________ Customer ______________________________ Range Resources-Appalachia, LLC Chesapeake Utilities Corporation dth ______ 150,000 50,000 Maximum _______ Minimum _______ $17.4990 $0.0000 $0.5753 $0.5753 $0.0270 Rates Pursuant to Section 3.2(C&D) of Rate Schedule FT-1: RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT $0.0010 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE $0.5753 BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST 1.3677 0.0000 1.3677 ASA USAGE SURCHARGE 0.0000 APPLICABLE SHRINKAGE PERCENTAGE December 1 through November 30: $0.0010 1.93% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 19 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON NOVEMBER 1, 2012: Docket No. CP11-508-000, Philadelphia Lateral Expansion Project: ______________________________________ Customer ______________________________ Grays Ferry Cogeneration Partnership Paulsboro Refining Company LLC dth ______ 20,000 7,000 Rates Pursuant to Section 3.2(C&D) of Rate Schedule FT-1: RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Maximum _______ Minimum _______ $8.3910 $0.0000 $0.2759 $0.2759 $0.0000 $0.2759 $0.0000 $0.0000 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST APPLICABLE SHRINKAGE PERCENTAGE (LAUF) December 1 through November 30: 0.0467 0.0000 0.0467 0.02% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 2. Rate Schedule FT-1 Version 19.0.0 20.0.0 Page 20 of19 20 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 FT-1 CHARGES CHARGES $/dth APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL FACILITY EXPANSIONS IMPLEMENTED ON NOVEMBER 1, 2014: Docket No. CP13-XXX-000, TEAM 2014 Project: ______________________________________ Customer ______________________________ dth ______ Chevron U.S.A. Inc. EQT Energy, LLC 300,000 300,000 Rates Pursuant to Section 3.2(C&D) of Rate Schedule FT-1: RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Maximum _______ Minimum _______ $13.7980 $0.0000 $0.4536 $0.4536 $0.0300 $0.0010 Rates Pursuant to Section 3.14 of the General Terms and Conditions: VOLUMETRIC RESERVATION CHARGE $0.4536 BASE UNIT ELECTRIC POWER COST ELECTRIC POWER COST ADJUSTMENT ADJUSTED ELECTRIC POWER COST 0.4227 0.0000 0.4227 ASA USAGE SURCHARGE 0.0000 APPLICABLE SHRINKAGE PERCENTAGE December 1 through November 30: $0.0010 1.67% ALL ZONES $/dth ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: Effective on: 0.0018 TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit Y Accounting Treatment of Abandonment TEXAS EASTERN TRANSMISSION, LP EXHIBIT Y Retire One 18,500 HP Turbine and Six 1,100 HP Recips At Delmont Compressor Station For TEAM 2014 ENTRY DEBIT 1 1088 CREDIT 1010 ACCOUNT DESCRIPTION Retirement Work in Progress Gas Plant in Service DEBIT CREDIT 5,851,720 5,851,720 To record the retirement from Gas Plant in Service. 2 1088 1310 Retirement Work in Progress Cash 1,052,897 1,052,897 To record Cost of Removal 3 1080 1088 Provision for Accumulated Depreciation Retirement Work in Progress To record clearance of Retirement Work in Progress. 6,904,617 6,904,617 TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit Z-1(a)-(b) Open Season and Reverse Open Season Notices Texas Eastern Appalachia to Market Expansion Project (TEAM 2014) Moving emerging natural gas supplies from the Appalachian region to diverse market destinations along the existing Texas Eastern footprint from the Northeast to the Midwest, and Gulf Coast. Binding Open Season Notice January 17, 2012 – February 17, 2012 Texas Eastern Appalachia to Market Expansion Project (TEAM 2014) Texas Eastern’s Appalachia to Market Expansion Project 2014 offers the unique opportunity for moving emerging natural gas supplies from the Appalachian region to diverse markets across the Texas Eastern system including premium Northeast markets, as well as markets in the Midwest, and Gulf Coast. export, Gas-to-Liquids, and other market opportunities in the Southeast and Gulf Coast. Spectra Energy’s Texas Eastern Transmission, LP (“Texas Eastern” or “TETLP”), a leading provider of natural gas transportation services for over 60 years, recognized the potential for emerging Appalachian natural gas supplies to move further east, west, and southwest on its pipeline system. TEAM 2014 is a project that will provide an efficient means to transport these supplies to Northeast, Midwest, and Gulf Coast markets. Texas Eastern has secured Precedent Agreements with two anchor shippers that provide the economic base to move forward with the project. With this Binding Open Season which shall run from January 17, 2012 to February 17, 2012, Texas Eastern invites all parties who are interested in obtaining firm TEAM 2014 capacity to submit a Binding Service Request Form. The service commencement date for this project is targeted for November 1, 2014. Connecting new supply to markets has been instrumental to Texas Eastern’s success for many years. Texas Eastern has the proven ability and experience to develop and execute TEAM 2014 as it has developed and executed numerous production-driven projects in the past. Texas Eastern intends to expand existing infrastructure and utilize existing rights of way, where possible, for TEAM 2014 in order to manage construction costs and minimize the impact on landowners and the environment. Project Description TEAM 2014 provides shippers with the opportunity to design transportation services from multiple existing and proposed new receipt points on the Texas Eastern system within the Appalachian production region in West Virginia and southwestern Pennsylvania that span portions of Texas Eastern’s Zones M2 and M3 to delivery points across the Texas Eastern system, including but not limited to Marietta, Pa. (head of the Marietta Extension to an interconnect with Transco near its Station 195); Lambertville, N.J.; Staten Island, N.Y.; Lebanon, Ohio; the interconnect with Transco near its Station 195; and other pipeline interconnects and markets in Zones M3, M2, M1, ELA and WLA. Project Background The rapidly expanding Appalachian production area, including the Marcellus Shale play, has created opportunities to increase supply diversity for growing domestic natural gas markets. The formation spans the regions of West Virginia, Eastern Ohio, Western and Northern Pennsylvania and Southern New York. With the successful development of the Northeast Pennsylvania sector of the Marcellus play over the past few years, Texas Eastern is now witnessing a similar development curve from emerging Appalachian production in the Southwestern Pennsylvania and West Virginia area around its pipeline and anticipates the positive potential benefits these supplies will bring to its customers on its system and the Northeast, Midwest, and Gulf Coast markets in general. The proposed expansion contemplates an overall potential project capacity of up to 1,400,000 Dth/d inclusive of the two anchor shipper commitments. Texas Eastern is proposing this Binding Open Season in order to invite all parties who are interested in obtaining capacity created by Texas Eastern’s existing facilities are uniquely positioned over the Appalachian production area while also providing significant access to major Northeast, Midwest, and Gulf Coast markets. Over the past several years, Texas Eastern has been developing and constructing well-timed, cost effective pipeline expansions that have and will connect significant sources of supply to markets and liquid trading points along the Texas Eastern system. The Texas Eastern system offers attractive market options for these newly developing supply sources, including access to conventional Northeast market growth, increasing natural gas power generation and interconnects with downstream pipelines that provide direct access to additional markets, and emerging LNG Page 2 of 5 the TEAM 2014 Expansion Project to submit a request for service pursuant to the terms of this open season notice. Texas Eastern will also consider requests for delivery to off system points. Project Rates Rates will be determined at the conclusion of the Binding Open Season and are dependent upon the scope and final facilities required to satisfy the firm service requests for shippers who are awarded capacity and who have executed binding Precedent Agreements. Shippers will have the ability to choose to pay Texas Eastern’s applicable recourse rates for service on the TEAM 2014 facilities or to pay a mutually agreeable negotiated rate for such service. The indicative negotiated rates for the project assuming a project capacity of up to 1,400,000 Dth/d pursuant to the limitation and restrictions described herein are $0.45-0.50 per Dth/d on a 100% load factor basis, respectively. In addition to the transportation rates, any shipper who transports gas will be subject to fuel charges that will ultimately be determined by the scope and final facilities required to satisfy the firm service requirements of those shippers who have executed binding Precedent Agreements. Initial indicative fuel rates will be determined after the close of this Binding Open Season. Texas Eastern has designed the project to accommodate a primary firm path for all project shippers to be split, with 50% of the firm path to extend to the East, and 50% of the firm path to extend to the West and South from the Appalachian supply region. Inclusive of the anchor shipper commitments, the project currently contemplates up to 450,000 Dth/d of available firm transport to the interconnect with Algonquin near Lambertville, N.J., with limited deliverability available downstream, up to 250,000 Dth/d to Marietta and on the Marietta Extension, and up to 700,000 Dth/d of firm path to the west and southwest to various markets and interconnects along the Texas Eastern system in Zones M2, M1 with limited delivery downstream to ELA and WLA. If nominations submitted in response to this Binding Open Season will result in the execution of binding Precedent Agreements in excess of 1,400,000 Dth/d or in excess of the project capacity available in any particular firm path or any particular point, Texas Eastern will implement a procedure that allocates the available capacity on a not unduly discriminatory basis, as described more fully below. If nominations submitted in response to this Binding Open Season result in less than the proposed capacity designed for the project, Texas Eastern may offer the excess capacity to all shippers that executed binding Precedent Agreements, including the anchor shipper on a not unduly discriminatory basis. The project does not require the 1,400,000 Dth/d of volume to proceed, rather it may proceed solely with the anchor shipper commitment or additional volumes up to 1,400,000 Dth/d. Binding Nomination Process During the Binding Open Season period interested parties must submit a Binding Service Request Form, which specifies the Maximum Daily Quantity (MDQ), contract term (15-year preferred; 10-year minimum), receipt and delivery points (both existing and proposed), with the proposed MDQ split 50/50, with 50 percent of the firm path extending to delivery points on the Texas Eastern system to the east and 50 percent of the firm path extending to delivery points on the Texas Eastern system to the west and to the south from the Appalachian supply region. The Binding Service Request Form is included in this package. The completed Binding Service Request Form must be executed by a duly authorized representative and mailed or faxed, to Texas Eastern’s offices at: 5400 Westheimer Ct. Houston, TX 77056 Attention: Bobby Huffman Email: RLHuffman@spectraenergy.com Fax: (713) 627-4727 Anchor Shipper Status To qualify as an anchor shipper for the TEAM 2014 Expansion Project, a shipper must execute a Precedent Agreement acceptable to Texas Eastern that: • Commits to an MDQ of at least 300,000 Dth/d; • Reflect a primary term that extends at least ten (10) years following the service commencement date of the project; and • Is executed by a duly authorized officer of the shipper no later than thirty (30) days following the end of the Binding Open Season, unless Texas Eastern agrees, in its sole discretion, to extend such deadline. Texas Eastern reserves the right to reject any Binding Service Request Form that is not received by 5:00 p.m. EST, on Friday, February 17, 2012. Contracting for Service Upon the close of the Binding Open Season, Texas Eastern will evaluate all valid requests for service as set forth in the Binding Service Request Forms to determine if the proposed TEAM 2014 Expansion Project is economically justified. Texas Eastern will also evaluate the availability of necessary materials, equipment and third-party services at the time to confirm that Texas Eastern can complete the facilities necessary to satisfy all valid requests submitted in this Binding Open Season by the timing contemplated for the TEAM 2014 Expansion Project. If Texas Eastern elects to proceed with the project, Texas Eastern representatives will contact all parties who have submitted valid requests Shippers qualifying for anchor shipper status may be entitled to certain rate and rate-related incentives and priority to project capacity that is not subscribed during this Binding Open Season or that was subscribed but then became available to Texas Eastern prior to the service commencement date for the project. An anchor shipper may also be entitled to a one-time option to extend its primary term for an additional five years. An anchor shipper will receive priority to project capacity as described more fully below in the Capacity Allocation Process. Page 3 of 5 in order to finalize the terms on which service will be provided. Limitations and Reservations Texas Eastern reserves the right, in its sole discretion, to decline to proceed with the TEAM 2014 Expansion Project or any portion of the project, including all or any portion of the project for which Texas Eastern has requested nominations as part of this Binding Open Season. Texas Eastern also reserves the right to reject any and all bids that do not satisfy the requirements set forth in this Binding Open Season Notice. Without limiting the foregoing, Texas Eastern may, but is not required to, reject any request for service in which the Binding Service Request Form is incomplete, is inconsistent with the terms and conditions outlined in this Binding Open Season Notice, contains additional or modified terms, or is otherwise deficient in any respect. Texas Eastern reserves the right to request a nominating party to modify its proposed delivery point(s), to the extent that Texas Eastern determines that the nominated point(s) will unduly increase the cost of the overall project or otherwise adversely affect the scope of the project in light of the other nominations received prior to or as part of the Binding Open Season. Texas Eastern also reserves the right to reject requests for service in the event requesting parties are unable to meet applicable creditworthiness requirements. No request for service shall be binding on Texas Eastern unless and until duly authorized representatives of both a requesting party and Texas Eastern have executed binding Precedent Agreements. Any party who is awarded TEAM 2014 capacity must enter into a binding Precedent Agreement. Texas Eastern reserves the right to reject any party’s valid request for service in the event a duly authorized representative of such party has not executed a binding Precedent Agreement on or before 30 days following the end of the Binding Open Season. Capacity Allocation Process In the event that Texas Eastern has received executed binding Precedent Agreements for a quantity of the TEAM 2014 Expansion Project capacity that exceeds the quantity of pipeline, point or segment capacity that Texas Eastern is willing to propose for the project, Texas Eastern will allocate such capacity first to anchor shippers executing binding Precedent Agreements that qualify as anchor shippers under this Binding Open Season and next to other shippers that have executed binding Precedent Agreements for the project. In the event that anchor shippers have executed binding Precedent Agreements for a quantity of capacity that exceeds the quantity of pipeline, point or segment capacity proposed for the project, Texas Eastern will pro rate such capacity among the anchor shippers on a not unduly discriminatory basis taking into account the quantities subscribed under each such binding Precedent Agreement and the quantities associated with the primary points and primary firm paths under each such agreement, but deeming the economic value of each such agreement to Pipeline to be equal. Any reduction in MDQ among anchor shippers will maintain the even split between the eastward primary firm path and the westward/southward primary firm path. If, after allocating capacity to anchor shippers, Texas Eastern is able to accommodate some but not all of the pipeline, point or segment capacity nominated by other (non-anchor) shippers executing binding Precedent Agreements, Texas Eastern will allocate such pipeline, point or segment capacity on a net present value basis among such other shippers based on rate, contract term and MDQ nominated, with Texas Eastern having the discretion to grant capacity to any bid or combination of bids that provides the highest net present value. Communications Interested parties may contact their Texas Eastern account manager or Bob Riga at 617-560-1436 or Bobby Huffman at 713-627-5259 to discuss any questions or to seek additional information about this Binding Open Season. Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of North America's premier natural gas infrastructure companies serving three key links in the natural gas value chain: gathering and processing, transmission and storage, and distribution. For more than a century, Spectra Energy and its predecessor companies have developed critically important pipelines and related infrastructure connecting natural gas supply sources to premium markets. Based in Houston, Texas, the company’s operations in the United States and Canada include approximately 19,100 miles of transmission pipeline, more than 305 billion cubic feet of storage, as well as natural gas gathering and processing, natural gas liquids operations and local distribution assets. The company also has a 50 percent ownership in DCP Midstream, one of the largest natural gas gatherers and processors in the United States. Spectra Energy is a member of the Dow Jones Sustainability World and North America Indexes and the U.S. S&P 500 Carbon Disclosure Project's Carbon Disclosure Leadership Index. For more information, visit www.spectraenergy.com. Page 4 of 5 Texas Eastern Appalachia to Market Expansion Project (TEAM 2014) Binding Open Season for 2014 Firm Transportation Capacity Binding Service Request Form Texas Eastern Transmission, LP Shipper Information Company Contact Title Address Phone Fax Email Maximum Daily Quantity ____________________________ Eastward Firm Path (50% of MDQ) Receipt Point(s) Quantity (Dth/d) Delivery Point(s) [1] Quantity (Dth/d) Delivery Point(s) [1] Quantity (Dth/d) Westward Firm Path (50% of MDQ) Receipt Point(s) Quantity (Dth/d) Contract Term: (15-year preferred, 10-year minimum) Signature of Requester/Customer and Date: By completing this Binding Service Request Form, subject to Texas Eastern’s acceptance of shipper’s request for service and shipper’s receipt of notification from Texas Eastern of quantities of capacity allocated to shipper, shipper hereby agrees to enter into negotiations with the objective to enter into a binding Precedent Agreement with Texas Eastern. If shipper does not enter into a binding Precedent Agreement, Texas Eastern reserves the right to reject shipper’s request for service as set forth in this Binding Service Request Form. If you have any questions, please contact your Texas Eastern account manager or the contact listed below. In addition, please send your completed Binding Service Request Form to: Texas Eastern Transmission Attention: Bobby Huffman 5400 Westheimer Court Houston, TX 77056 [1] 713-627-4727 fax RLHuffman@spectraenergy.com The sum of multiple nominated delivery point quantities may not exceed the Maximum Daily Quantity. Page 5 of 5 REVERSE OPEN SEASON Texas Eastern Appalachia to Market Expansion Program 2014 (TEAM 2014) March 12 – 30, 2012 In connection with the binding open season held by Texas Eastern Transmission, LP (“Texas Eastern”) for the TEAM 2014 Project from January 17, 2012 to February 17, 2012, Texas Eastern will consider, from March 12, 2012 through March 30, 2012, offers by its current firm shippers who desire to release, subject to the criteria set forth below, all or a portion of their current firm transportation entitlements to reduce the scope of Texas Eastern’s facility requirements for a proposed expansion designated as the TEAM 2014 Project. The TEAM 2014 Project contemplates the expansion of Texas Eastern’s facilities to provide additional firm transportation service on the Texas Eastern system for a minimum term of ten (10) years, with extension rights, commencing on November 1, 2014, from receipt points on the Texas Eastern system in M2 in Marshall County, West Virginia and Greene and Fayette Counties in Pennsylvania to proposed delivery points on the Texas Eastern system in an easterly direction in M3 near Lambertville, New Jersey and Staten Island, New York and in a westward and southerly direction to delivery points in M2 and M1 and in ELA and WLA. Shippers interested in releasing capacity in connection with this project must have capacity which meets all of the following criteria: 1. Shippers must have firm rights to the capacity they desire to release, on a nonrecallable basis, as of November 1, 2014. 2. Shippers’ capacity must enable Texas Eastern to reduce the scope of its proposed incremental facilities, as finally scoped and designed, necessary to satisfy Texas Eastern’s obligations pursuant to the open season held in January/February, 2012, while maintaining or improving the economics of the TEAM 2014 Project. Shipper’s capacity must result in available capacity on Texas Eastern’s facilities from receipt points on the Texas Eastern system to the proposed delivery points on the Texas Eastern system defined above, and not result in a release of any capacity unnecessary for the project. 3. Eligible shippers whose capacity release requests are accepted pursuant to this notice will receive a credit on their monthly invoice for such release in an amount equal to the reservation charges received from the TEAM 2014 shipper(s) utilizing the released capacity during the applicable month, provided the credit will not exceed the amount equal to the eligible shipper’s reservation charges associated with such capacity for the month. For the term of any such release as described above, eligible shippers will continue to be obligated to Texas Eastern, and must pay Texas Eastern, for all reservation charges associated with their capacity, as effective from time to time, subject to the credit described in the preceding sentence. 4. Any and all releases of capacity meeting the criteria set forth herein will be subject to and conditioned on Texas Eastern’s receipt of any and all necessary governmental authorizations with terms and conditions acceptable to Texas Eastern and Texas Eastern proceeding with, and completing construction of, the TEAM 2014 Project facilities, subject to any modifications in light of this reverse open season. No release will become effective until the date on which service commences under the firm agreement(s) for which capacity has been released under this reverse open season. Any shippers meeting the criteria set forth above and interested in releasing, on a nonrecallable basis, their capacity in connection with the TEAM 2014 Project, should indicate such interest by faxing or e-mailing a notice to Bobby Huffman (713) 627-5259 (phone), (713) 627-4727 (fax), or rlhuffman@spectraenergy.com (email) by Friday, March 30, 2012, at 5 p.m. EST. Any such notice shall be binding on the shipper submitting the notice until Texas Eastern has completed its analysis of whether the shipper’s capacity can be utilized for the limited purposes described herein, and such notice must include the quantity of firm entitlements which the requestor desires to release and must identify the applicable Texas Eastern contract(s). Texas Eastern will notify all shippers responding to this TEAM 2014 Project Reverse Open Season as soon as reasonably practicable as to whether their capacity can be utilized for the limited purpose described herein. To the extent there is more capacity meeting the above stated requirements than is required, all such offers to release capacity will be prorated. For every offer to release capacity accepted by Texas Eastern, the Maximum Daily Quantity (“MDQ”) set out in that shipper’s firm service agreement shall be reduced in accordance with the offer to release capacity and the shipper shall lose all rights, including renewal options, on the MDQ that has been released, but shall continue to receive service on all other capacity under the shipper’s firm service agreement. Every offer to release capacity is contractually binding on the shippers proposing to release capacity in connection with this reverse open season. In order to effect an offer to release capacity, the shipper must, within thirty (30) days of the date that Texas Eastern notifies the shipper that its capacity can be utilized for the TEAM 2014 Project, execute an agreement that will govern the shipper’s release of capacity consistent with the provisions set forth in this reverse open season. Any questions concerning this TEAM 2014 Project Reverse Open Season may be addressed to Bobby Huffman at the numbers written above or directly to your Texas Eastern Account Manager. SUPPLEMENTAL REVERSE OPEN SEASON Texas Eastern Appalachia to Market Expansion Program 2014 (TEAM 2014) Texas Eastern Transmission, LP (“Texas Eastern”) is currently conducting a reverse open season for the TEAM 2014 Project. For details regarding the reverse open season, please see the reverse open season notice which is currently posted on Texas Eastern’s LINK® system website. Texas Eastern hereby clarifies that, following the close of the reverse open season, it will provide notice to each shipper submitting a timely and valid offer to turnback capacity of the portion of the offered capacity that Texas Eastern will accept for the TEAM 2014 Project and the amount of the credit to reservation charges that the shipper will receive for such capacity. If the shipper does not agree to turnback capacity pursuant to the terms of such notice within five (5) business days of its receipt thereof, the shipper’s offer to turnback capacity will be null and void, unless the parties mutually agree to extend the deadline. The reverse open season period will be extended until Friday, March 30, 2012 at 5 p.m. EST. Any shipper meeting the criteria set forth in the reverse open season notice, as clarified herein, and interested in releasing, on a non-recallable basis, their firm capacity in connection with the TEAM 2014 Project, should indicate such interest by faxing or emailing a notice of its offer by that time to Bobby Huffman (713) 627-5259 (phone), (713) 627-4727 (fax) or rlhuffman@spectraenergy.com. All other terms of the reverse open season remain in effect as described in the reverse open notice currently posted on Texas Eastern LINK® system website. Any questions regarding this supplement to the TEAM 2014 Project Reverse Open Season may be addressed to Bobby Huffman at the phone number or email address provided above or directly to your Texas Eastern Account Manager. TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit Z-1(c) Diagram of Turnback Requests Texas Eastern Transmission, LP Docket No. CP13-___-000 Exhibit Z-1(c) Sheet 1 of 1 TEAM 2014 Path vs. Contract Paths Proposed for Turn Back TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit Z-1(d) Diagram of Project Scope Based on Turnback Offers Texas Eastern Transmission, LP Docket No. CP13-___-000 Exhibit Z-1(d) Sheet 1 of 1 TEAM 2014 Path after Including Capacity Turn Back TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit Z-2 Incremental Fuel and Electric Power Derivation Texas Eastern Transmission, LP Docket No. CP13-___-000 Exhibit Z-2 Sheet 1 of 4 INCREMENTAL FUEL AND ELECTRIC POWER COST DERIVATION TEAM 2014 PROJECT (600 MDth/D) Incremental Fuel and EPC associated with Forward Flow (300 MDth/D) The incremental fuel and electric power for the TEAM 2014 Project (the Project) associated with the Forward Flow Expansion was calculated from the expected additional compression requirements for the incremental capacity based on the winter peak day design scenario as illustrated in the flow diagrams (Exhibit G/GI Forward Flow). To derive to the incremental fuel and electric power for the Project, Texas Eastern has compared compression requirements according to the flow diagram under winter peak day operation with existing facilities as currently configured (Exhibit G – Base System, Sheets 1 to 14) and the flow diagram with existing facilities combined with the full project forward haul volume (300 MDth/D) and proposed facilities (Exhibit G – Expansion System, Sheets 1 to 14). The incremental fuel and electric power cost were then calculated based on the incremental compression requirement from this comparison between the Base and Expansion systems. Based on this comparison, Texas Eastern has determined a daily incremental fuel requirement of 5.299 MDth/D and an annual incremental electric power cost estimate of $2,804,133 for the Forward Flow Expansion portion of the Project. The incremental Project fuel shrinkage which includes LAUF associated with Forward Flow Expansion is calculated as follows: Daily Design Fuel = 5.299 MDth Volume Determinant = 300 MDth/D Fuel Shrinkage = 5.299/ (300 +5.299) = 1.74% LAUF (M2 - M3) = 0.66% (see note below) Project Shrinkage (Forward Flow Expansion) = 1.74% + 0.66% = 2.40% Incremental Fuel and EPC associated with Reverse Flow (300 MDth/D) The incremental fuel and electric power for the TEAM 2014 Project (the Project) associated with the Reverse Flow Expansion was calculated from the expected additional compression requirements for the incremental capacity based on a reverse flow day design scenario as illustrated in the flow diagrams (Exhibit G/GI Reverse Flow). In order to establish the reverse flow design scenario, Texas Eastern utilized the recent trend of supply shift from traditional Gulf Coast area to the Marcellus production area to assume no forward haul flow in the system from the Gulf Coast supply area to the point where Marcellus production comes into the Texas Eastern system (around Holbrook area). The only flow in the reverse flow design scenario are existing firm "back haul" contracts and approximately 100 MDth/D of system requirement from M2 to the supply area. This establishes the reverse flow design day which is used to determine fuel and electric power requirements for the reverse flow portion of the Project. To derive to the incremental fuel and electric power for the Project, Texas Eastern has compared compression requirements according to the flow diagram under this reverse flow design day operation with existing facilities as currently configured (Exhibit G – Base System, Sheets 1 to 20) and the flow diagram with existing facilities combined with the full project reverse flow volume (300 MDth/D) and proposed facilities (Exhibit G – Expansion System, Sheets 1 to 20). The incremental fuel and electric power cost were then calculated based on the incremental compression requirement from this comparison between the Base and Expansion systems. Based on this comparison, Texas Eastern has determined a daily incremental fuel requirement of 0.555 MDth/D and an annual incremental electric power cost estimate of $238,975 for the reverse flow portion of the Project. The incremental Project fuel shrinkage which includes LAUF associated with Reverse Flow Expansion is calculated as follows: Daily Design Fuel = 0.555 MDth Volume Determinant = 300 MDth/D Fuel Shrinkage = 0.555/ (300 +0.555) = 0.18% LAUF (M2 - M2/WLA/ELA) = 0.75% (see note below) Project Shrinkage (Reverse Flow Expansion) = 0.18% + 0.75% = 0.93% Blended Incremental Fuel and EPC for the entire Project Volume (600 MDth/D) The combined, blended incremental Fuel and EPC for the entire Project volume of 600 MDth/D is calculated as follows: Project Shrinkage (Both Forward and Reverse Expansion) = (2.40% + 0.93%) / 2 = 1.67% Total Estimated Electric Power Cost (EPC) for Entire Project Volume = $2,804,133 + $238,975 = $3,043,108 Note : LAUF (Lost and Unaccounted For) - The TEAM 2014 forward flow LAUF component (0.66%)is established as the currently effective mainline transmission LAUF component for a Zone M2-M3 haul per the latest Annual ASA filing in Docket No. RP13-237, which became effective on December 1, 2012. The TEAM 2014 reverse flow LAUF component (0.75%) is likewise established as the weighted average of the currently effective mainline transmission LAUF components for hauls between (i) Zones M2 and WLA, (ii) Zones M2 and ELA, and (iii) intra Zone M2. Texas Eastern Transmission, LP Docket No. CP13-___-000 Exhibit Z-2 Sheet 2 of 4 INCREMENTAL FUEL AND ELECTRIC POWER COST DERIVATION TEAM 2014 PROJECT FORWARD HAUL (300 MDth/D) Station Uniontown Delmont Unit(s) Cent - Mars 100 - Unit 1T Cent - Mars 100 - Unit 2T Electric - Unit 1E Electric - Unit 2E Electric - Unit 3E Horsepower Utilized Installed "Base" "Expansion" 12,250 12,250 13,300 12,250 12,250 13,300 14,300 13,591 13,591 16,000 19,484 17,728 20,000 20,000 20,000 Difference 1,050 1,050 0 -1,756 0 Fuel rate 0.000274 0.000274 Fuel Difference 0.288 0.288 N/A -$210,747 Recip - KVG (6 x 1100 HP each) Recip - KVS (4 x 2000 HP each) Cent - Mars 100 Cent - Frame 5 Cent - Titan 250 - TEAM 2014 Electric - TEAM 2014 6,600 8,000 13,300 18,500 26,000 26,000 6,600 8,000 13,300 19,975 0 0 0 0 13,300 0 26,000 26,000 -6,600 -8,000 0 -19,975 26,000 26,000 0.000249 0.000249 -1.643 -1.992 0.000274 0.000229 N/A -5.473 5.954 Armagh Cent - Frame 5 Cent - Titan 130 - TEAM 2014 22,000 18,100 23,250 0 22,000 18,008 -1,250 18,008 0.000274 0.000229 -0.343 4.124 Lilly Cent - W52 Cent - W52 Cent - DC990 Cent - Frame 5 5,000 5,000 5,000 19,800 5,300 5,300 5,300 21,000 5,000 5,000 5,000 19,800 -300 -300 -300 -1,200 0.000274 0.000274 0.000274 0.000274 -0.082 -0.082 -0.082 -0.329 Entriken Cent - Frame 5 Cent - Titan 250 - TEAM 2014 22,000 26,000 23,250 0 22,000 22,489 -1,250 22,489 0.000274 0.000229 -0.343 5.150 Perulack Cent - DC990 Cent - DC990 Cent - DC990 Cent - Frame 5 5,000 5,000 5,000 19,800 5,400 5,400 5,400 19,800 5,400 5,400 5,400 19,480 0 0 0 -320 0.000274 -0.088 Shermans Dale Cent - Frame 5 Cent - Frame 5 19,800 22,000 19,800 22,000 18,960 22,000 -840 0 0.000274 -0.230 Grantville Cent - W52 Cent - W52 Cent - DC990 Cent - Frame 5 5,000 5,000 5,000 18,500 5,000 5,000 5,000 18,500 5,000 5,000 5,000 19,123 0 0 0 623 0.000274 0.171 Bernville Cent - Frame 5 Cent - Frame 5 19,800 22,000 19,800 22,000 19,800 22,000 0 0 Bechtelsville Cent - W52 Cent - W52 Cent - DC990 Cent - Frame 5 5,000 5,000 5,000 18,500 5,000 5,000 5,000 18,500 5,000 5,000 5,000 18,500 0 0 0 0 Lambertville Recip (2 x 2200 HP) Cent - DC 990 Cent - DC 990 Electric Unit 4,400 5,100 5,100 10,000 3,419 5,175 5,175 10,000 3,633 5,100 5,100 9,124 214 -75 -75 -876 0.000249 0.000274 0.000274 N/A 0.053 -0.021 -0.021 Total Incremental Fuel (MDth/D) Total Annual Electric Cost Incremental Fuel (MDth/D) TEAM Forward Flow Fuel % (5.299/(5.299+300)) TEAM Forward Flow LAUF (M2-M3) Total TEAM Forward Flow Shrinkage Annual Electric Cost $3,120,000 -$105,120 5.299 $2,804,133 5.299 1.74% 0.66% 2.40% Texas Eastern Transmission, LP Docket No. CP13-___-000 Exhibit Z-2 Sheet 3 of 4 INCREMENTAL FUEL AND ELECTRIC POWER COST DERIVATION TEAM 2014 PROJECT REVERSE FLOW (300 MDth/D) Difference 0 0 0 0 0 0 Fuel rate 0.000249 0.000249 0.000249 0.000274 0.000274 0.000265 Fuel Difference 0.000 0.000 0.000 0.000 0.000 0.000 0 0 0 0 0 0 N/A N/A 0.000274 0.000 0.000 0.000 0 0 0 0 0 0 N/A N/A 0.000 0.000 7,700 10,600 0 0 0 0 0 0 0.000249 0.000274 0.000 0.000 Electric Motors (3 x 2000 hp each) Solar Mars Gas Turbine 6,000 10,600 0 0 0 0 0 0 N/A 0.000274 0.000 0.000 Athens GE Frame 3 Gas Turbines (4 x 8000 hp each) 32,000 0 0 0 0.000274 0.000 Wheelersburg Electric Motors (6 x 2500 hp each) Electric Motor (1 x 15,000 hp) 15,000 15,000 0 0 4,142 0 4,142 0 N/A N/A 0.000 0.000 Owingsville GE Frame 3 Gas Turbines (4 x 8000 hp each) GE Frame 5 Gas Turbine 32,000 18,500 0 0 0 0 0 0 0.000274 0.000274 0.000 0.000 Danville Recip - HBA-8 (7 x 1760 hp each) Recip - HBA-8 T(3 x 2050 hp each) GE Frame 3 Gas Turbines (2 x 8000 hp each) GE Frame 5 Gas Turbine 12,320 6,150 16,000 18,500 0 0 0 0 0 0 0 0 0 0 0 0 0.000249 0.000249 0.000274 0.000274 0.000 0.000 0.000 0.000 Tompkinsville Electric Motors (2 x 15500 hp each) 30,000 0 0 0 N/A 0.000 Gladeville Electric Motors (6 x 2500 hp each) Electric Motor (1 x 15,000 hp) GE Frame 5 Gas Turbine 15,000 15,000 18,500 0 0 0 0 0 0 0 0 0 N/A N/A 0.000274 0.000 0.000 0.000 Mt. Pleasant Electric Motors (2 x 15,000 hp) Electric Motor (1 x 20,000 hp) 30,000 20,000 0 0 0 0 0 0 N/A N/A 0.000 0.000 Barton Electric Motors (6 x 3000 hp each) Electric Motor (1 x 20,000 hp) GE Frame 5 Gas Turbine 18,000 20,000 19,800 0 0 0 0 0 0 0 0 0 N/A N/A 0.000274 0.000 0.000 0.000 Egypt Electric Motors (2 x 20,000 hp) Electric Motor (1 x 15,000 hp) 40,000 15,000 0 0 0 0 0 0 N/A N/A 0.000 0.000 Kosciusko Recip - GMV-10-S (14 x 2500 hp each) Electric Motor 35,000 16,875 0 0 0 5,417 0 5,417 0.000249 N/A 0.000 0.000 Clinton GE Frame 3 Gas Turbines (4 x 7600 hp each) 30,400 0 0 0 0.000274 0.000 Union Church Recip - HBA-8 T(9 x 2050 hp each) Recip - TLA (4 x 3400 hp each) 18,450 13,600 0 0 0 2,357 0 2,357 0.000249 0.000249 0.000 0.588 St. Francisville GE Frame 3 Gas Turbines (4 x 8000 hp each) 32,000 0 0 0 0.000274 0.000 Opelousas Recip - HBA-8 T(9 x 2050 hp each) 18,450 4,092 3,960 -132 0.000249 -0.033 Gillis GE Frame 3 Gas Turbine GE Frame 3 Gas Turbine 7,600 8,000 0 0 0 0 0 0 0.000274 0.000274 0.000 0.000 Horsepower Utilized Installed "Base" "Expansion" 5,400 0 0 5,400 0 0 8,000 0 0 13,333 0 0 13,333 0 0 13,333 0 0 Station Holbrook Unit(s) Recip - GMV-10-S (4 x 1350 hp each) Recip - GMVA-10 (4 x 1350 hp each) Recip - KVS412 (4 x 2000 hp each) Gas Turbine 1T Gas Turbine 2T Gas Turbine 3T Berne Electric Motors (6 x 2500 hp each) Electric Motor (1 x 15,000 hp) DC 990 15,000 15,000 5,100 0 0 0 Summerfield Electric Motors (4 x 2000 hp each) Electric Motors (1 x 11000 hp each) 8,000 11,000 Somerset Recip - GMV-10 (7 x 1100 hp each) Solar Mars Gas Turbine Five Points Total Incremental Fuel (MDth/D) Total Annual Electric Cost Incremental Fuel (MDth/D) TEAM Reverse Flow Fuel % (0.555/(0.555+300)) TEAM Reverse Flow LAUF Total Reverse Flow Shrinkage Annual Electric Cost 103,550 135,425 0.555 $238,975 0.555 0.18% 0.75% 0.93% Texas Eastern Transmission, LP Docket No. CP13-___-000 Exhibit Z-2 Sheet 4 of 4 INCREMENTAL FUEL AND ELECTRIC POWER COST DERIVATION TEAM 2014 PROJECT (600 MDth/D) SUMMARY Percentage Forward Flow (300 MDth/D) Fuel EPC Reverse Flow (300 MDth/D) Fuel EPC LAUF (Lost and Unaccounted For) Forward Flow (M2 - M3) Reverse Flow (M2 - M2/WLA/ELA) Total Daily Fuel including LAUF TEAM 2014 Fuel Shrinkage (600 MDth/D) Total Annual Estimated EPC EPC : Electric Power Cost Dollars ($) 1.74% $2,804,133 0.18% $238,975 0.66% 0.75% 3.33% 1.67% $3,043,108 TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit Z-3 Flow Diagrams and Cost Information for Alternatives Enclosed under separate cover in Volume IV. This information has been marked Contains Critical Energy Infrastructure Information—Do Not Release TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit Z-4 Draft Environmental Assessment Enclosed under separate cover in Volume II. TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Exhibit Z-5 Matrix of Information Incorporated into Resource Reports Based on Commission Staff Comments TEAM 2014 Project FERC Resource Report Data Requests Response Location/Comment Resource Report 1 1. Indicate whether the access roads in table 1.3-2 are all existing roads. If not, please indicate which access roads or portions of access roads are to be widened, improved or newly constructed for the project. 2. Provide the geotechnical investigations for all of the proposed horizontal directional drill (HDD) crossings for the Project as described in Section 1.5.2. Include a discussion about unanticipated release potential when drilling in karst areas. 3. Identify the amount (feet and total acres) of overlap between existing right(s)-of-way and the proposed construction and permanent rights-of-way. Resource Report 1 Table 1.3-2 and Resource Report 8 Table 8.1-5 have been updated to include the requested information. updated Section 1.5.2 - geotech info to be provided supplemental Table 1.3-1 provides temporary workspace, existing easement and new easement acreage and has been updated to include the total acreage. Typical figure 1 reference in text of Section 1.3.1 4. Identify all existing permanent access roads associated with each segment of pipeline that would Access Road Table 1.3-2 in Section 1.3.1 includes identification of permanent be looped, and confirm that landowner permission would be obtained for all permanent access roads. access roads (existing and new). The Access Roads description within Section 1.31 includes a statement that landowner permission will be obtained for the two new permenant access roads. 5. Identify and describe the locations of the proposed pipeyards and wareyards. 6. Confirm that all bi-directional facility modifications would take place entirely on Texas Eastern owned or leased property. 7. Provide a table identifying the location, timeframe, and general scope of existing, approved, under construction, and planned major projects (e.g., roads, bridges, mining, other pipeline project, large commercial/industrial/residential developments) in the Project area. Do not limit the identification of other projects to a narrow corridor around the project but, rather, consider the location, scope, and timing of each project in determining whether it could have a cumulative impact on the resources affected by the project. Provide a detailed discussion of cumulative impacts that any identified projects and the project would have on each applicable environmental resource, and the measures that Texas Eastern would implement to minimize cumulative impacts. (Repeated as Question 1. from Staff's January 18, 2013 Comments ) Pipeyared and wareyard locations and descriptions can be found in Table 1.33, which has been added to Section 1.3.1 Section 1.3.3 - text has been updated to include information about work that will occur outside of the Texas Eastern ROW. Section 1.4 has been revised and now also includes Table 1.4-1 Cumulative Projects. Page 1 of 13 TEAM 2014 Project FERC Resource Report Data Requests 8. Confirm that all applicable measures of the Erosion and Sediment Control Plan (E&SCP) would be applied to stream pre-blasting activities and provide Appendix E: E&SCP. 9. Describe the process Texas Eastern would implement to resolve landowner complaints. 10. Identify how many environmental inspectors Texas Eastern would employ to ensure environmental compliance during construction of the facilities. 11. Section 9.1.2.2 states that the project would include truck loading activities associated with the Delmont Compressor Station. Provide a description of this activity including what material would be loaded onto trucks and an estimate of how many trucks per year would be loaded with material. Resource Report 2 - Water Use and Quality 1. Provide the following tables: a. Waterbody Crossing Summary Table – number and types of waterbodies crossed by loop (including project totals); b. Wetlands Crossing Summary Table – number and types of wetlands crossed by loop (including project totals); c. Revised table 2.2-1 – remove “county/state”, “latitude/longitude”, “USGS quad name”, “class of aquatic resources”, “impact type”, and “stream impact (sq ft)”; and d. Revised table 2.3-1 – remove “county/state”, “hgm code”, “water type”, “latitude/longitude”, “USGS quad name”, “watershed”, and “class of aquatic resources”. Resource Report 3 - Fisheries, Vegetation, and Wildlife 1. Identify in table format the fish species commonly associated with each fisheries and waterbody type. 2. Identify in table format the wildlife species commonly associated with each habitat type. Response Location/Comment Section 1.5.2, Pre-Blasting In Streams has been updated to confirm that any blasting activities will be completed in accordance with the E&SCP. Section 1.8 has been updated to include a summary of Texas Eastern's process for resolving landowner concerns. Section 1.5.5 has been updated to state that There will be a minimum of one environmental inspector per construction spread. Section 9.1.2.2 has been revised to state while truck loading activities were a part of the Plan Approval they are no longer proposed as needed by construction. Table Added 2.2-3 Table Added 2.3-3 Edited Table 2.2-1 and 2.2-2 Edited Table 2.3-1 and 2.3-2 Edited Table 3.1-1 Edited Table 3.3-1 3. Revise table 3.3-1 so that it is consistent with the identified vegetation and habitat types. Edited Table 3.3-1 4. Identify and describe the migratory bird species of special concern and their habitats known to occur in the project area. Provide the following information: Section 3.3.2 Migatory Birds was added Page 2 of 13 TEAM 2014 Project FERC Resource Report Data Requests a. an evaluation of the short-term, long-term, and permanent impacts on these species of special concern by construction and operation of the proposed facilities. The evaluation should include the direct, indirect, and cumulative effects of the project; b. project-specific conservation measures and best management practices, developed in consultation with the U.S. Fish and Wildlife Service (FWS), to protect migratory birds and their habitats and to avoid or minimize take; and c. documentation of consultation with the FWS regarding project-related impacts on migratory bird species of special concern. 5. Confirm that birds of conservation concern were accounted for in table 3.3-2. 6. Describe the feasibility of clearing natural or semi-natural habitats and performing maintenance activities between September 1 and March 31. Question 2. from Staff's January 18, 2013 Comments: Specifically address the concerns raised by the United States Fish and Wildlife in the letter dated November 2, 2012. Resource Report 6 – Geological Resources 1. In section 6.1.1, provide maximum and minimum slope angles for each proposed loop. Provide length of slopes where slope angles exceed 37 degrees (75% grade) for each loop. Response Location/Comment additional text added to Section 3.3.3 additional text added to Section 3.3.3 additional text added to Section 3.3.3 Table 3.3-3 was added Section 3.3.3 provides Texas Eastern's standard schedule that maintenance activites will not occur April 15-August 1. Section 3.3.2 Migatory Birds was added Information has been added to Section 6.1.1 for each loop description 2. In Section 6.1, provide detailed geologic mapping for all of the loops and compressor stations specifically identifying active or potentially active landslides which includes the following: A landslide potential map was added as Figure 6.4-3; individual detail maps were added as Figures 6.4-4 to 6.4-6 a. structural geology (such as bedding attitudes); b. discussion of how landslides in adjacent slope could affect the pipeline or facility; c. identify by milepost which landslides may pose a threat to the pipeline and how that specific hazard will be mitigated. Also provide follow-up discussion in Section 6.4.4 and 6.4.5; Section 6.4.5 has been updated. Information added to intro of Section 6.4.5 Table 6.4.3 Areas with Potential for Increased Landslides Hazard was added to Section 6.4.5 and Sections 6.4.4 and 6.4.5 have been updated. d. provide more detail discussion regarding landslide potential along the Holbrook Loop; and Discussion added to Holbrook Loop section of 6.4.5 e. evaluation of the potential for landslides to affect proposed access roads. 3. In Section 6.1.2 describe or clarify the following: a. each compressor station site’s vertical relief and slope configuration; Discussion added to intro of 6.4.5 Information has been added to Section 6.1.2 Page 3 of 13 TEAM 2014 Project FERC Resource Report Data Requests b. describe slope stability of immediately adjacent ascending and descending slopes from the facility; c. state if grading will be required to build the compressor modifications and how much cut and/or fill is planned for each; and d. describe if modifications to the slopes are anticipated. 4. Section 6.2 states that blasting will be required. Provide a blasting plan for the Project. Response Location/Comment Information has been added to Section 6.1.2 Information has been added to Section 6.1.2 Information has been added to Section 6.1.2 Information has been added to Section 6.2.1. 5. Section 6.4.4 stated that research identified karst sinkholes which are located within 0.25 miles Karst location map added as figure 6.4-2 and discussion was added to the of the Bernville Loop. Perform detailed field mapping to investigate the presence of possible karst individual segments in 6.4.4 including past experience. features (sinkholes, swallets, etc.) in the area of the Bernville Loop as well as all other loops and all compressor station locations. Also evaluate if any significant dewatering has been performed in these areas (from quarries or other operations). Include past existing pipeline performance data for the parallel pipelines adjacent to proposed loops. 6. As part of Section 6.4.4, provide a detailed map which shows the location of the proposed pipeline loops and compressor stations on the Pennsylvanian state karst density map. map included as figure 6.4-2 7. In Section 6.4.5, describe any grading or slope modification proposed in the Fayette County Ware Added to Section 6.4.5 under "Pipeyards and Wareyards" Yard. 8. In Section 6.4.6, identify Project sites or proposed loops that are located within a 100 year flood Added to Section 6.4.6 and the alignments zone and depict boundaries of the flood zone on alignment sheets. Resource Report 7 – Soils 1. Under Section 7.0, identify any contaminated soil locations within the Project. Added information under section 7.2.6 and referenced Resource Reports 2 and 12. 2. Identify what percentage of the Project area is prime farmland and farmland of state-wide Information included under Section 7.3 importance. 3. Given the history of oil and gas exploration and production in the region, discuss the potential for This comment is addressed in section 7.2.6. surficial soil and/or shallow groundwater contamination along the pipeline route and provide an unanticipated discovery plan if soil and/or shallow groundwater contamination is encountered during construction and construction dewatering activities. Page 4 of 13 TEAM 2014 Project FERC Resource Report Data Requests 4. Provide a discussion of the consultation with local conservation authorities and government land agencies with respect to their recommendations/requirements for seed mixes, seeding dates, fertilizer, erosion control, and noxious weed control. Resource Report 8 – Land Use 1. Provide site-specific residential construction plans for residences with 50 feet of the construction work area. These will be attached to the environmental assessment as an appendix and should be filed with the application. 2. For those access roads or portions of access roads identified in table 1.3-2 that would be newly constructed for the project, please provide the current land use and type of vegetation for these areas. 3. In table 8.2-1 the distances from some of the structures are several hundred feet to the centerline, but within 50 feet of workspace. Add a column to the table that defines the type of workspace if it not directly along the pipeline construction right-of-way (i.e. contractor yards and access roads). Resource Report 9 – Air and Noise Quality 1. Include a table identifying all existing emission sources at each compressor station. Response Location/Comment NRCS consultation discussed in Section 7.4 Site-specific residential plans have been added to RR8. Section 8.1.5 has been updated to provide the requested information. Table 8.2-1 has been updated to include a column for workspace location. Tables have been added that list each existing emission source for each compressor station in RR9 Section 9.0 under station headings 2. Provide a table identifying each existing compressor unit at each compressor station. Include the Tables have been added that identify each existing compressor unit at each type (reciprocating, turbine), horsepower, and fuel type for each unit. station with request information in RR9 Section 9.0 under appropriate compressor station headings. 3. Update table 9.1-2 of Resource Report 9 to include the attainment status of all Project Information to be provided in a Supplemental submission. component locations, including pipeline loops, meter stations, launcher and receivers, main line valves, etc. Provide the appropriate level of clarity as some counties can be included in different Air Quality Control Regions for various non-attainment pollutants. 4. Provide the emission estimates associated with the fuel gas heaters proposed at the Uniontown Compressor Station. Include detailed emission calculations to support the emission estimates. Discussion was added addressing the exemption criteria that the fuel gas heaters fall under. Emission estimates were included to reflect what was in the Plan Approval application Page 5 of 13 TEAM 2014 Project FERC Resource Report Data Requests Response Location/Comment 5. Include a discussion on the applicability of New Source Performance Standard Subpart Kb for the Discussion of NSPS and NESHAP applicability to storage tanks and truck Delmont Compressor Station related to the pressure vessels and storage tanks proposed to be loading at Delmont is addressed in Section 9.1.3.2. installed. Also provide a discussion on the applicability of National Emission Standard for Hazardous Air Pollutants Subpart EEEE related to truck loading activities. 6. Include a discussion for each compressor station of the potentially applicable NESHAPs (including Discussion of NESHAP applicability is addressed in Sections 9.1.3.1 thru subparts YYYY and ZZZZ). 9.1.3.4. 7. Revise table 9.1-3 to include a per pollutant breakdown, for each compressor station, of the Information to be provided in a Supplemental submission. existing emissions associated with each emission source, the new emissions associated with the Project for each emission source, the new total emissions from the facility, and the net change in emissions. The emissions should include all emission sources, even those exempt from permitting. 8. Revise tables 9.1-4A and 9.1-4B to provide construction emissions for all facilities associated with Information to be provided in a Supplemental submission. the project, including those listed in Tables 1.2-3 and 1.2-4. Provide the supporting detailed emission calculations. 9. Provide an air modeling screening analysis (AERSCREEN) for operating emissions for existing and Information to be provided in a Supplemental submission. proposed emissions from each compressor station for both Class II and Class I areas for criteria pollutants. Provide the distance from the compressor stations and pipelines to the nearest Class I areas and demonstrate that emissions from pipeline construction and operations would not significantly impact air quality on Class I areas within 100 kilometers. Include all correspondence with the appropriate Federal Land Manager(s) regarding air quality as necessary. Page 6 of 13 TEAM 2014 Project FERC Resource Report Data Requests Response Location/Comment 10. General Conformity applies to all portions of the project located within designated nonInformation to be provided in a Supplemental submission. attainment or maintenance areas. Although a non-attainment or maintenance area may also be within the Ozone Transport Region (OTR) and are subject to more stringent thresholds, project facilities located within an attainment area and the OTR do not fall within General Conformity regulations. In addition, only portions of a facility subject to a New Source Review, Non-attainment New Source Review, or minor New Source Review permit are exempt from General Conformity. If a source at a compressor station is exempt from permitting or is not subject to one of these types of permits, it is subject to General Conformity. Update Section 9.1.5.1 to rectify these facility applicability errors in the text to reflect the appropriate project facilities that are subject to General Conformity review and the General Conformity Applicability Analysis provided. Also, Update Table 9.15 and 9.1-6 to include all project facilities including the compressor stations and those facilities listed in Tables 1.2-3 and 1.2-4. 11. Update Section 9.1.5.2 (Cumulative Impacts) to address other projects or facilities besides the Information to be provided in a Supplemental submission. Project facilities. Identify any other existing or proposed PSD facilities in proximity to each compressor station and the cumulative impact their operation. Identify any other construction activities near the compressor stations or pipeline (other energy infrastructure, road projects, housing development construction, etc.) and the cumulative impact of their construction. 12. For each compressor station, Resource Report 9 identifies potential noise control mitigation which A statement has been added to each noise control mitigation section in match those identified in the Hoover and Keith, Inc reports. Clarify whether Texas Eastern commits to report confirming mitigation measures will be implemented. implementing these noise control mitigation measures. Also identify whether the projected noise levels for the compressor station assumes these measures are implemented. 13. Provide copies of all supporting background sound surveys for each compressor station as identified in each Hoover & Keith, Inc. Acoustical Analysis (Report Nos. 2551, 1750, 2454, 1779, and 1751). Information is included in Appendix L Page 7 of 13 TEAM 2014 Project FERC Resource Report Data Requests 14. Clarify whether the current sound levels provided for the Uniontown Compressor Station include units 1R – 4R. Although these units do not run frequently, if they are included as part of the FERC certificated capacity of the compressor station, and can be run during peak flow, they should be included in the noise analysis. 15. Update table 1 of the Hoover and Keith report for the Delmont Compressor Station to include the in-service date for each compressor unit. Also, provide one horsepower rating type for all compressor units (i.e. NEMA, ISO, bhp). 16. Update the Hoover and Keith report for the Delmont Compressor Station to include a description of the methodology used to calculate the existing compressor station contribution minus the retirement of Units 2T and Units #1-6. The summary table and Table 1 of the report do not appear to take into account whether actual ambient conditions (i.e. birds, traffic, insects etc.) are the contributing factor to the ambient conditions or the existing compressor station with all units running. For example, at Noise Sensitive Area (NSA) 2, which is the furthest set of NSAs, an almost overall 8 decibel reduction is projected. However, no indication is provided whether the existing units are currently audible at this location. The background noise level is also currently the highest at this location while being the furthest from the compressor station, which also indicates that other factors may be contributing to the ambient noise over the compressor station. Response Location/Comment Statement added to Uniontown CS section in RR9 Noise Section 9.2.4.1. Units 1R – 4R were retired. As a result, potential noise of Units 1R – 4R should not be included in the noise analysis. Information is included in Appendix L. Section 3.0 of H&K Report No. 2711 (dated Jan. 11, 2013), discusses in-service dates (or lack of this information). Also, NEMA HP ratings for units included. Information is included in Appendix L. Section 4.0 of H&K Report No. 2711 (dated Jan. 11, 2013), discusses the methodology to calculate station noise minus retirement of Unit 2T and Units #1-#6. Regarding influence of actual ambient noise (i.e., birds, traffic), the station noise was considered the primary noise contributor at all identified NSAs, and primary factor that affects station noise contribution at NSAs is existing terrain. For example, NSA #2 is in direct line-of- sight with Unit 2T and noise of Unit 2T, during operation, is the major noise contributor to noise level at NSA #2. As a result, after Unit 2T is retired, there will be a substantial decrease in the overall station noise at NSA #2 but the effect of station noise reduction after Unit 2T retirement is less at other NSAs. 17. Update the Hoover and Keith reports for the Armagh and Entriken Compressor Stations to include Information is included in Appendix L. Section 3.0 of H&K Report No. 2710 for a table of each existing compressor unit, the manufacturer, unit type and model, fuel source, Entriken (dated Jan. 7, 2013) & Section 3.0 of H&K Report No. 2713 for horsepower (using the same rating methodology for all units), and in-service dates. Armagh (dated Jan. 7, 2013) discusses in-service dates and NEMA HP ratings for the station compressor units. 18. The Hoover and Keith reports for the Delmont, Armagh, and Entriken Compressor Stations states Information is included in Appendix L. Respective H&K reports for Delmont, that there would also be an added “maintenance” type of gas blowdown vent associated with the Armagh and Entriken includes noise analysis of the maintenance gas compressor units. Provide a noise analysis associated with this maintenance blowdown identifying the blowdown event and whether blowdown venting will include a silencer. projected noise level at the nearest NSAs for each compressor station and identify whether the blowdowns would be piped to a silencer. Page 8 of 13 TEAM 2014 Project FERC Resource Report Data Requests Response Location/Comment 19. Provide a noise analysis, including all supporting detailed calculations, for all NSAs within one-half Appendix L and new section 9.2.4.6 added to RR9. Currently, there will be mile of each HDD entry and exit site. This analysis should include: one (1) HDD associated with the Project (i.e., HDD at Schuylkill River) and H&K Report No. 2798 (dated Jan. 7, 2013) provides an acoustical assessment of this HDD. a. the distance and direction to the NSAs and the proposed length of time HDD activities would Distance/direction of identified closest NSAs included in Section 2.0 of the occur; respective H&K report. Updated Section 9.2.4.6 to include HDD duration. b. a plot plan showing the distance and direction of the nearest NSAs; Information is included in Appendix L (Page 6 of the respective H&K report) and summary in section 9.2.4.6 Information is included in Appendix L (Section 5.0 the respective H&K report) c. background noise levels and estimated drilling noise contributions at the NSAs; d. any noise mitigation measures Texas Eastern would commit to implement at each HDD entry or exit location where estimated drilling noise contributions would exceed a day/night sound level (Ldn) of 55 decibels (dBA), and the projected resulting noise levels with the mitigation measures employed; and Question 3 from Staff's January 18, 2013 Comments: Provide a description of the potential cumulative effects on air and noise resulting from the construction and operation of the TEAM 2014 Project in Pennsylvania. Resource Report 10 – Alternatives 4. Provide detailed flow diagrams and hydraulic flow models to support Texas Eastern’s TEAM 2014 Project as currently contemplated. Statement added to each noise control mitigation section in report confirming mitigation measures will be implemented. Information to be provided in a Supplemental submission. Attachment B of Texas Eastern's February 6, 2013 Response Page 9 of 13 TEAM 2014 Project FERC Resource Report Data Requests 5. Discuss the system operational reasons for Texas Eastern rejecting the following alternatives: Response Location/Comment Attachments C and D of Texas Eastern's February 6, 2013 Response a. expanding the Capacity Restoration Project (CRP) system. Also, compare and contrast the future expandability of the Penn-Jersey system versus the CRP system; and b. using the Penn-Jersey and CRP systems nearly equally, differing by consideration for volumes to be delivered at a point along the CRP system at Marietta, Pennsylvania. Support the response with detailed flow diagrams and hydraulic flow models. 6. Gas Supply Consulting, Inc. (GSC) identified four system alternatives in ConocoPhillips November 2, 2012 comments in response to the “Notice of Intent to Prepare an Environmental Assessment for Texas Eastern and Appalachia Market Expansion Project 2014 and Request for Comments on Environmental Issues.” Attachments C and D of Texas Eastern's February 6, 2013 Response Assess and describe the feasibility of the alternatives proffered by GSC. Specifically discuss the operational feasibility of each study in meeting the desired operational flexibility of Texas Eastern’s TEAM 2014 Project. Texas Eastern’s evaluation of each alternative should be supported by detailed flow diagrams and hydraulic models. 7. Identify and describe system alternatives that incorporate GSC’s inclusion of various levels of turnback capacity from ConocoPhillips. These alternatives should address: Attachments C and D of Texas Eastern's February 6, 2013 Response a. expanding the CRP system; and b. using the Penn-Jersey and CRP systems nearly equally, differing by a consideration for volumes to be delivered at a point along the CRP system at Marietta, Pennsylvania. Support the response with detailed flow diagrams and hydraulic flow models. Page 10 of 13 TEAM 2014 Project FERC Resource Report Data Requests Response Location/Comment 8. Provide the information below for each system alternative identified in Question 5: Attachments C and D of Texas Eastern's February 6, 2013 Response a. pipeline location(s), diameter(s) and length(s); b. compressor station locations, and descriptions of these facilities (including horsepower and turbine type); c. acres of land temporarily and permanently required to construct and operate the alternative; d. number of wetland and waterbodies crossed; e. types and acres of vegetation potentially affected; f. number of residences located within 50 feet of proposed construction workspaces; g. the right-of-way (in miles) that facilities would parallel or be adjacent to existing rights-of-way; h. sensitive areas; and i. cultural resources. The information should be provided in table format, comparing each system alternative to the proposal. Texas Eastern may supplement its response with additional information/text that may be relevant to the analysis of the system alternatives. 9. Specifically describe the potential scheduling, permitting and costs impacts associated with the Attachments C and D of Texas Eastern's February 6, 2013 Response development of the CRP system alternative in more detail, as identified in Section 10.2 of RR 10. Also, describe these impacts as they apply to Question 8 of this request. 10. Clarify terminology used in alternatives and explain how this information was utilized in the assessment. Specific terminology that is unclear: a. In Section 10.2.1 Holbrook Discharge Pipeline – “high compression ratios”; 10. Clarify terminology used in alternatives and explain how this information was utilized in the assessment. Specific terminology that is unclear: b. in Section 10.2.9 Delmont Compressor Station – “the pressure gradient profile”; and Section 10.2.1 of Resource Report 10 Section 10.2.9 of Resource Report 10 Page 11 of 13 TEAM 2014 Project FERC Resource Report Data Requests 10. Clarify terminology used in alternatives and explain how this information was utilized in the assessment. Specific terminology that is unclear: c. in Section 10.2.10 Armagh Compressor Station and Section 10.2.11 Entriken Compressor Station– “improved compressor balance.” 11. Provide tables that compare the following: Response Location/Comment Section 10.2.10 of Resource Report 10 Table 10.2-1 of Resource Report 10 a. the proposed 2.7-mile Perulack West Discharge Pipeline and the 4.5-mile alternative identified in Section 10.2.2 of RR 10; and The table should address items a – i identified in Question 8 of this request. 11. Provide tables that compare the following: b. the proposed 2.4-mile Grantville West Discharge Pipeline and the 5.0-mile alternative identified in Section 10.2.5 of RR 10. 12. Identify and describe pipeline looping and/or compression alternatives that would satisfy the purpose of the Project, but may not include construction of one or more of the following: Table 10.2-2 of Resource Report 10 Section 10.2.3 of Resource Report 10 a. the Perulack East Discharge Pipeline; 12. Identify and describe pipeline looping and/or compression alternatives that would satisfy the purpose of the Project, but may not include construction of one or more of the following: Section 10.2.4 of Resource Report 10 b. the Shermans Dale Discharge Pipeline; 12. Identify and describe pipeline looping and/or compression alternatives that would satisfy the purpose of the Project, but may not include construction of one or more of the following: Section 10.2.4 of Resource Report 10 c. the Grantville East Discharge Pipeline; and Page 12 of 13 TEAM 2014 Project FERC Resource Report Data Requests 12. Identify and describe pipeline looping and/or compression alternatives that would satisfy the purpose of the Project, but may not include construction of one or more of the following: Response Location/Comment Section 10.2.7 of Resource Report 10 d. the Bernville Discharge Pipeline. 13. Identify and describe a pipeline route alternative that would avoid impacts to the Beaumariage property and compare to the proposed route. Address items a – i identified in Question 8 of this request in your response. 14. Identify the locations of known (ongoing or planned) long wall mining activities underlying the Holbrook Loop alternative identified in Section 10.3.1 of RR 10. Also, identify the percentage of the 5.8-mile alternative that would be underlain by long wall mining activities. Resource Report 11 – Reliability and Safety 1. Identify the US Department of Transportation Class locations and High Consequence Areas by milepost along the pipeline loops. Section 10.3.2 of Resource Report 10 Section 10.2.1 of Resource Report 10 shown on alignments / referenced in RR11 Page 13 of 13 TEXAS EASTERN TRANSMISSION, LP TEAM 2014 PROJECT DOCKET NO. CP13-___-000 Notice UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION Texas Eastern Transmission, LP ) Docket No. CP13-___-000 ABBREVIATED APPLICATION OF TEXAS EASTERN TRANSMISSION, LP FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY AND FOR RELATED AUTHORIZATIONS AND ORDER APPROVING ABANDONMENT ( ) Take notice that on February 27, 2013, Texas Eastern Transmission, LP (“Texas Eastern”), 5400 Westheimer Court, Houston, Texas 77056, filed with the Federal Energy Regulatory Commission an application under Sections 7(b) and 7(c) of the Natural Gas Act (“NGA”) for its proposed TEAM 2014 Project. Specifically, Texas Eastern requests: (i) authorization under NGA Sections 7(b) and 7(c) to construct, own, operate, and maintain certain pipeline and compression facilities and related appurtenances and to abandon in place certain compression facilities necessary to increase capacity on the Texas Eastern system by 600,000 dekatherms per day from supply points in the Marcellus Shale region to delivery points in New York, New Jersey, Ohio, Mississippi and Louisiana; (ii) authority to charge initial incremental recourse rates for firm service on the TEAM 2014 Project facilities and existing system rates for interruptible service on such facilities; and (iii) any waivers, authority, and further relief as may be necessary to implement the proposal contained in its application. Texas Eastern requests that the Commission grant the requested authorizations and related approvals on or before November 21, 2013. Texas Eastern states that issuing an order by this date will help to ensure that the TEAM 2014 Project is in service by November 1, 2014, in time to meet the transportation needs of the TEAM 2014 Project shippers and to ensure that the additional capacity is available as the TEAM 2014 Project shippers’ production comes on line. The name, address, and telephone number of the person to whom correspondence and communications concerning this Application should be addressed is: Berk Donaldson Director, Rates and Certificates Texas Eastern Transmission, LP P.O. Box 1642 Houston, Texas 77251-1642 Phone: (713) 627-4488 Fax: (713) 627-5947 Any person desiring to intervene or to protest this filing must file in accordance with Rules 211 and 214 of the Commission’s Rules of Practice and Procedure (18 C.F.R. §§ 385.211 and 385.214). 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 proceeding. Any person wishing to become a party must file a notice of intervention or motion to intervene, as appropriate. Such notices, motions, or protests must be filed on or before the comment date. Anyone filing a motion to intervene or protest must serve a copy of that document on the Applicant. On or before the comment date, it is not necessary to serve motions to intervene or protests on persons other than the Applicant. The Commission encourages electronic submission of protests and interventions in lieu of paper using the “eFiling” link at http://www.ferc.gov. Persons unable to file electronically should submit an original and 14 copies of the protest or intervention to the Federal Energy Regulatory Commission, 888 First Street, N.E., Washington, D.C. 20426. This filing is accessible on-line at http://www.ferc.gov, using the “eLibrary” link and is available for review in the Commission’s Public Reference Room in Washington, D.C. There is an “eSubscription” link on the web site that enables subscribers to receive email notification when a document is added to a subscribed docket(s). For assistance with any FERC Online service, please email FERCOnlineSupport@ferc.gov, or call (866) 208-3676 (toll free). For TTY, call (202) 502-8659. Comment Date: 5:00 pm Eastern Time on [INSERT DATE]. Kimberly D. Bose Secretary US 1735967v.23 2