UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
DOMINION TRANSMISSION, INC.
Docket No. CP14-__-000
ABBREVIATED APPLICATION
FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
NEW MARKET PROJECT
Application
Filed: June 2, 2014
VOLUME I – PUBLIC
Dominion Transmission, Inc.
701 East Cary Street, Richmond, VA 23219
June 2, 2014
Kimberly D. Bose, Secretary
Federal Energy Regulatory Commission
888 First Street, N.E.
Washington, D.C. 20426
Re:
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-__ -000
Dear Secretary Bose:
Dominion Transmission, Inc. (DTI) hereby submits for filing, pursuant to Section
7(c) of the Natural Gas Act, as amended, and Part 157 of the regulations of the
Federal Energy Regulatory Commission (Commission), an Abbreviated Application
for a Certificate of Public Convenience and Necessity to construct, install, own,
operate and maintain certain compression facilities located in Chemung, Herkimer,
Madison, Montgomery, Schenectady, and Tompkins Counties, New York that
comprise the New Market Project.
Information Submitted
In accordance with 18 C.F.R. §§388.112 and 388.113, this Application consists of the
following volumes:
Volumes I and II – Public,
Volume III – Contains Privileged Information – Do Not Release, and
Volume IV – Contains Critical Energy Infrastructure Information – Do Not
Release.
DTI requests that, pursuant to 18 C.F.R. § 388.112, the information filed in Volume
III be treated as privileged and confidential, and that it not be released to the public.
This volume is labeled “Contains Privileged Information – Do Not Release” and
contains information that is customarily treated as privileged and confidential.
DTI requests that, pursuant to 18 C.F.R. § 388.112, the information filed in Volume
IV be treated as Critical Energy Infrastructure Information (CEII), and that it not be
released to the public. This volume is labeled “Contains Critical Energy
Infrastructure Information – Do Not Release” and contains information that is
customarily treated as CEII.
A table of contents is provided in the application listing the documents contained
within each volume.
In accordance with the Commission’s Filing Guide/Qualified Documents list, DTI is
also sending three hardcopies to the Commission.
Certification
I hereby certify that I have read and am familiar with the contents of both the paper
and electronic versions of the document comprising DTI’s Application and form of
notice, that the contents of the Application are true and correct to the best of my
knowledge and belief, and that the contents of the paper version is identical to the
electronic version submitted herewith.
If you have any questions, please contact me at 804-771-4399.
Respectfully submitted,
/s/
Matthew R. Bley
Matthew R. Bley
Manager, Gas Transmission Certificates
Authorized Representative
Dominion Transmission, Inc.
701 E. Cary Street
Richmond, VA 23219
Enclosures
UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
In the Matter of
]
]
]
DOMINION TRANSMISSION, INC.
Docket No.
CP14-__-000
ABBREVIATED APPLICATION
OF DOMINION TRANSMISSION, INC.
FOR A CERTIFICATE
OF PUBLIC CONVENIENCE AND NECESSITY
NEW MARKET PROJECT
Matthew R. Bley, Manager
Gas Transmission Certificates
Dominion Transmission, Inc.
701 E. Cary Street
Richmond, VA 23219
Telephone: (804) 771-4399
Facsimile: (804) 771-4804
E-mail: Matthew.R.Bley@dom.com
Margaret H. Peters
Assistant General Counsel
Dominion Resources Services, Inc.
120 Tredegar Street
Richmond, VA 23219
Telephone: (804) 819-2411
Facsimile: (804) 819-2183
E-mail: Margaret.H.Peters@dom.com
Filed June 2, 2014
Volume I
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-__-000
Abbreviated Application for a
Certificate of Public Convenience and Necessity
TABLE OF CONTENTS
VOLUME I – PUBLIC
ABBREVIATED APPLICATION
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
Applicant
Background
Description of Proposal
Public Convenience and Necessity
List of Exhibits
Environmental Impact
Notice
Requested Authorization and Conclusion
Exhibit C – Company Officials
Exhibit D – Subsidiaries and Affiliation
Exhibit F – Location of Facilities
Exhibit I – Market Data
Exhibit J – Federal Authorizations
Exhibit K – Cost of Facilities
Exhibit N – Revenues, Expenses, and Income
Exhibit P – Tariff
VOLUME II – PUBLIC
Exhibit F-I – Environmental Report
VOLUME III – CONTAINS PRIVILEGED INFORMATION – DO
NOT RELEASE
Exhibit F-I
APPENDIX 1-F - Landowners within 0.5 Mile of the Project Facilities
APPENDIX 4-B – Cultural Resources Report
VOLUME IV – CONTAINS CRITICAL ENERGY
INFRASTRUCTURE INFORMATION – DO NOT RELEASE
Exhibit F-I
APPENDIX 1-D – Site Layout Plan, Building Plan, Elevation, and
Engineering Schematic Drawings
Exhibits G, G-I, and G-II – Flow Diagrams
UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
Dominion Transmission, Inc.
)
Docket No. CP14-
-000
ABBREVIATED APPLICATION OF DOMINION TRANSMISSION, INC.
FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
NEW MARKET PROJECT
Dominion Transmission, Inc. (DTI) hereby files this Abbreviated Application
(Application) with the Federal Energy Regulatory Commission (FERC or
Commission), pursuant to Section 7 of the Natural Gas Act, as amended (NGA) 1/
and Part 157 of the Commission’s regulations 2/, for a Certificate of Public
Convenience and Necessity authorizing DTI to construct, install, own, operate and
maintain certain compression facilities located in Chemung, Herkimer, Madison,
Montgomery, Schenectady, and Tompkins Counties, New York (NY). Specifically,
as described more fully herein, DTI requests Commission authorization of the “New
Market Project” (Project), pursuant to which DTI will provide 112,000 dekatherms
per day (Dt/d) of firm transportation service.
The Project is designed to provide natural gas firm transportation services in
Pennsylvania (PA) and NY, creating increased access for production in this region to
major natural gas markets of the Northeast and Mid-Atlantic regions of the United
States. Specifically, DTI will receive gas on behalf of The Brooklyn Union Gas
1/ 15 U.S.C. § 717 (f) (2000).
2/ 18 C.F.R. §§ 157.5 et seq. (2014).
1
Company d/b/a National Grid (Brooklyn Union) and Niagara Mohawk Power
Corporation d/b/a National Grid (Niagara Mohawk) at DTI’s existing Leidy
interconnections with Texas Eastern Transmission (TET) or Transcontinental Gas
Pipe Line (Transco) in Clinton, County (Co.), PA (Leidy Interconnect) and deliver
Brooklyn Union’s gas to Iroquois Gas Transmission (IGT) at DTI’s existing
Brookman Corners Station in Montgomery Co., NY (Brookman Corners
Interconnect), and Niagara Mohawk’s gas to an existing interconnection with Niagara
Mohawk near Schenectady, NY (West Schenectady Interconnect). The new firm
transportation capacity is fully subscribed pursuant to precedent agreements with
Brooklyn Union and Niagara Mohawk.
DTI proposes to commence construction of the Project facilities in September
2015 in order to meet an in-service date for the contracted firm transportation service
on or before November 1, 2016. To meet this schedule, DTI respectfully requests
that the Commission issue a final Certificate Order approving the Project on or before
April 1, 2015.
As described in more detail below, the Project satisfies the guidelines set forth
in the 1999 Statement of Policy Regarding Certification of new Interstate Natural Gas
Pipeline Facilities 3/ as the proposal: (i) will provide increased natural gas firm
transportation service; (ii) will have no adverse consequences on existing customers,
existing pipelines or landowners and communities; and (iii) will result in no financial
subsidization of the Project by existing customers.
3/ Certification of New Interstate Natural Gas Pipeline Facilities; Statement of Policy, 88 FERC
¶ 61,227 (1999), Order Clarifying Statement of Policy, 90 FERC ¶ 61,128 (2000), Order Further
Clarifying Statement of Policy, 92 FERC ¶ 61,094 (2000) (hereinafter, “1999 Policy Statement”).
2
In support of this Application, DTI respectfully shows as follows:
I.
APPLICANT
The exact legal name of DTI is Dominion Transmission, Inc. DTI is a
corporation organized and existing under the laws of the State of Delaware with its
principal place of business at 120 Tredegar Street, Richmond, Virginia, 23219. DTI
is an interstate gas transmission business unit and wholly-owned subsidiary of
Dominion Gas Holdings, LLC, a wholly-owned subsidiary of Dominion Resources,
Inc., one of the nation's largest producers and transporters of energy. DTI is engaged
primarily in the business of storing and transporting natural gas in interstate
commerce for customers principally in New York, Ohio, Pennsylvania, West
Virginia, Virginia, Maryland, and the District of Columbia. Primarily a provider of
gas transportation and storage services, DTI operates a large, integrated underground
natural gas storage system and maintains approximately 7,700 miles of pipeline in six
states – Ohio, West Virginia, Pennsylvania, New York, Maryland, and Virginia. DTI
is an “open-access” pipeline operating under the Commission’s regulations and a
Commission-approved FERC Gas Tariff.
The names, titles, and mailing addresses of the persons to whom
correspondence and communications concerning this application are to be addressed
are:
Matthew R. Bley, Manager
Gas Transmission Certificates
Dominion Transmission, Inc.
701 E. Cary Street
Richmond, VA 23219
Telephone: (804) 771-4399
Facsimile: (804) 771-4804
Margaret H. Peters
Assistant General Counsel
Dominion Resources Services, Inc.
120 Tredegar Street
Richmond, VA 23219
Telephone: (804) 819-2411
Facsimile: (804) 819-2183
3
E-mail: Matthew.R.Bley@dom.com
E-mail: Margaret.H.Peters@dom.com
These persons are designated to receive service under 18 C.F.R. §
385.203(b)(3), and should be placed on the official service list for this proceeding
pursuant to 18 C.F.R. § 385.2010.
II. BACKGROUND
Natural gas produced from the Marcellus and Utica shales in the Appalachian
region of West Virginia and Ohio is expected to continue its strong and rapid growth.
DTI’s natural gas pipeline system is uniquely positioned to transport Appalachian
production, as its pipelines traverse the areas of significant supply growth. DTI is
proposing the Project in response to customer requests for incremental pipeline
capacity to increase supply diversity while meeting growing market demand for
natural gas. The additional firm transportation capacity for the new gas supplies will
also alleviate the possibility of shortages by providing more gas to market.
III. DESCRIPTION OF PROPOSAL
A.
Open Season and Reverse Open Season
DTI conducted an open season from April 25 through May 16, 2013 for the
proposed firm transportation services offered for this Project. As a result of the open
season, DTI executed precedent agreements with both Brooklyn Union and Niagara
Mohawk (hereinafter, referred to as the “Customers”) for firm transportation service
totaling 112,000 Dt/d. DTI conducted a reverse open season during the same period,
but did not receive any bids in response to the posting.
4
B.
Facilities and Operation
To accommodate the new service entitlements for the Customers as part of
this Project, DTI plans to install the facilities listed below. See Exhibit F for the
facilities locations and Exhibit F-I for more detailed facilities descriptions.
1.
Horseheads Station: DTI proposes to construct a new compressor
station with a new 11,010 horsepower (hp) gas turbine/compressor package
and auxiliary equipment near Horseheads, Chemung Co., NY.
2.
Sheds Station: DTI proposes to construct a new compressor station
with a new 10,880 hp gas turbine/compressor package and auxiliary
equipment in Madison Co., NY.
3.
Brookman Corners Station: DTI proposes to install a new 6,393 hp
gas turbine/compressor package, two 2,370 hp reciprocating compressors, and
auxiliary equipment at its existing Brookman Corners Station in Montgomery
Co., NY. The compression facilities will be housed in an addition to the
existing compressor building within the fenced limits of the existing station
site. DTI also proposes to construct a new M&R facility at this station.
4.
Borger Station: DTI proposes to modify station piping at its existing
Borger Station in Tompkins Co., NY.
5.
Station Coolers: DTI proposes to install station coolers at its existing
Brookman Corners Station in Montgomery Co., Borger Station in Tompkins
Co., and Utica Station in Herkimer Co., NY.
5
6.
West Schenectady Metering and Regulating (M&R) Facilities: DTI
proposes to modify its existing West Schenectady M&R in Schenectady Co.,
NY.
7.
Suction and Discharge Pipeline: Pipeline facilities required for this
Project are limited to approximately 1,425 feet of new 42-inch diameter
suction and discharge pipelines at Horseheads Station.
C.
Cost
As detailed in Exhibit K, the estimated total cost for DTI’s construction of the
Project is $158,960,570. The AFUDC included in Exhibit K is calculated in
compliance with the Commission’s AFUDC policy, with accruals beginning in
November 2013. 4/ In accordance with the AFUDC policy, DTI affirms that it had
begun to incur capital expenditures for the Project in November 2013 and that
activities necessary to prepare the Project for its intended use were in progress at that
time.
D.
Market
As documented in Exhibit I, DTI has executed precedent agreements with its
Customers for all of the capacity associated with the Project. The Customers will
receive firm transportation service under the terms of DTI’s existing Rate Schedule
FT, for a Maximum Daily Transportation Quantity (MDTQ) of 112,000 Dt/d.
Therefore, the Project capabilities are fully subscribed. The proposed commencement
date for the firm transportation service is no later than November 1, 2016. The full
112,000 Dt/d is for a primary term of fifteen years. The primary receipt point for
4/ Southern Natural Gas Co., 130 FERC ¶ 61,193 (2010).
6
both Customers will be at the existing Leidy Interconnect in Clinton Co., PA with
either TET or Transco. The primary delivery points will be the Brookman Corners
Interconnect in Montgomery Co., NY for Brooklyn Union and the West Schenectady
Interconnect near Schenectady, NY for Niagara Mohawk.
E.
Initial Rate
As shown in Exhibit P and consistent with the Commission’s policy on
pricing expansion capacity, DTI has designed an initial, incremental firm
transportation base reservation rate to recover the costs of the incremental Project
facilities. The proposed incremental base reservation rate, which is based on the cost
of the Project facilities recovered over the incremental firm billing determinants,
exceeds DTI’s existing system base reservation rate for firm transportation service.
Therefore, using the higher incremental base reservation rate for services created by
the Project to the Customers will prevent existing customers from subsidizing the
incremental transportation service in contravention of Commission Policy. 5/
In addition to the incremental base reservation rate described above – which
will apply in lieu of the otherwise-applicable base reservation rate under DTI’s Rate
Schedule FT – the recourse rates for firm transportation service created by this
Project shall include all other applicable rates, charges and surcharges under DTI’s
Rate Schedule FT, such as Transportation Cost Rate Adjustment (TCRA) and Electric
5/ The 1999 Policy Statement created a presumption that most expansion projects built by an existing
pipeline would be incrementally priced. 1999 Policy Statement at pp. 61,745-46; see also, e.g., North
Baja Pipeline, LLC, 117 FERC ¶ 61,022 at PP 49-51 (2006) (approving use of effective recourse rates
for inexpensive mainline expansion and incremental recourse rates for lateral expansion capacity).
7
Power Cost Adjustment (EPCA) charges, the maximum usage charge, and maximum
system fuel retention percentage.
In lieu of the incremental base reservation rate, DTI has agreed to charge a
fixed negotiated firm transportation base reservation rate that is lower than the
incremental base reservation rate that was calculated for the transportation service
provided as part of this Project.6/ In addition to the negotiated rate, DTI will also
charge all other applicable rates, charges and surcharges under DTI’s Rate Schedule
FT. DTI acknowledges that it must file for separate Commission authorization of this
negotiated rate, prior to commencing service. 7/ DTI further acknowledges that it
may be at risk for any revenue shortfall associated with the negotiated rate agreement
that may be identified in a subsequent rate proceeding, to the extent consistent with
applicable Commission policies at that time.
IV. PUBLIC CONVENIENCE AND NECESSITY
DTI submits that the proposed Project is in the public convenience and
necessity. The benefits of the Project outweigh any adverse impacts on DTI’s
customers, captive customers of other pipelines, or affected landowners and
communities, as examined pursuant to the Commission’s 1999 Policy Statement. By
applying the Policy Statement framework, the Commission seeks to foster
competitive markets, to protect captive customers, and to provide “incentives for the
6/ The revenue reflected on Exhibit N, Page 2, Line 1 is based on the calculated incremental base
reservation rate, not the lower fixed negotiated base reservation rate that DTI has agreed to charge.
7/ “In certificate proceedings, the Commission establishes initial recourse rates but does not make
determinations regarding specific negotiated rates for proposed services.” MoGas Pipeline, LLC, 124
FERC ¶ 61,287 (2008) citing Centerpoint Energy – Mississippi River Transmission Corp., 109 FERC ¶
61,007 at P. 19 (2004).
8
optimal level of construction and efficient customer choice.” 8/ DTI’s proposal meets
each of the Commission’s objectives.
A.
The Threshold Requirement - No Financial Subsidies
Under the 1999 Policy Statement, DTI must demonstrate that its project is in
the public interest, which can be met by establishing the threshold requirement that
the project is financially viable without any subsidies. Here, DTI has met this
requirement because DTI will not rely on subsidies by existing customers to support
proposed construction for incremental markets.9/ As discussed in Section III.E
above, the proposed incremental base reservation rate for DTI’s service provides
adequate financial support to cover the cost of the proposed facilities. The rates
applicable to services under the Project will support the cost of the facilities
associated with this Project. DTI’s existing customers will not subsidize the Project,
nor will their rates be affected by the Project.
B.
No Adverse Effects on Potentially Affected Interests
In deciding whether DTI’s proposal is required by the public convenience and
necessity, the Commission will consider any adverse effects on the economic interests
of DTI’s existing customers, of competing existing pipelines and their captive
customers, and of landowners and surrounding communities. DTI’s proposal will
have no adverse effect on DTI’s existing customers or on any competing pipeline and
their captive customers. DTI will eliminate or minimize the limited adverse impacts
8/ Policy Statement at p. 61,743.
9/ Id. at p. 61,746.
9
on affected landowners and communities, and any residual adverse impact on these
interests is justified by the public benefits of DTI’s proposal.
1.
Effects on DTI’s Customers
The Project will not adversely affect existing customers, because DTI’s
existing customers will not experience a cost increase or degradation in service
as a result of the proposed construction. To the extent that the Project facilities
provide access to incremental sources of supply, DTI respectfully submits that
the Project offers a potential benefit to its existing customers.
2.
Effects on Captive Customers of Other Pipelines
The proposed Project will not affect the captive customers of other
existing pipelines that already serve the market because the proposed facilities
are designed to create incremental capacity on a portion of DTI’s system.
This new capacity is being created in order to serve new market requirements.
3.
Effects on Affected Landowners
The Project has been designed to minimize the impact on landowners
and the environment. The facility installations will be on lands that are owned
or leased by DTI and which currently support natural gas facilities.
A list of landowners whose property may be affected by the
construction is included as part of Exhibit F-I. DTI will provide landowner
notification in accordance with 18 C.F.R. §157.6(d). In the event that any
affected landowners have concerns related to the proposed Project, DTI
intends to work cooperatively with them to address their concerns.
10
V.
LIST OF EXHIBITS
This is an abbreviated Application and, as such, contains only that data
required to disclose fully the nature and extent of the proposed action. DTI believes
that this Application contains all the information necessary to explain fully its
request, and to support a finding that the requested authorizations are consistent with
the public convenience and necessity. To the extent this Application does not contain
every submission required by the Commission, DTI respectfully requests waiver of
the Commission’s regulations. The information required by Section 157.14 of the
Commission’s regulations is set forth below, attached hereto as exhibits, or omitted
for the reasons stated:
Exhibit A
-
Articles of Incorporation and Bylaws
Omitted. Copies of DTI’s Certificate of Incorporation
and Bylaws were filed as Exhibit A in Docket No.
CP01-58 and are incorporated herein by reference.
Exhibit B
-
State Authorizations
Omitted. Copies of DTI’s Authorizations were filed as
Exhibit B in Docket No. CP07-10 and are incorporated
herein by reference.
Exhibit C
-
Company Officials
Attached.
Exhibit D
-
Subsidiaries and Affiliation
Attached.
Exhibit E
-
Other Pending Applications and Filings
Omitted. DTI knows of no other filings or applications
pending before the Commission, which directly or
significantly affect or are affected by the instant
application.
Exhibit F
-
Location of Facilities
Attached.
Exhibit F-I
-
Environmental Report
Attached in Volume II.
11
Exhibits G,
G-I, and G-II
Flow Diagrams
Attached in Volume IV.
Exhibit H
-
Total Gas Supply
Omitted. Not Applicable.
Exhibit I
-
Market Data
Attached.
Exhibit J
-
Federal Authorizations
Attached.
Exhibit K
-
Cost of Facilities
Attached.
Exhibit L
-
Financing
Omitted. The proposed construction is to be financed
from operating funds on hand at DTI or to be obtained
from DTI's parent, Dominion Gas Holdings, LLC. It is
projected that DTI's funds used during construction will
be sourced through short-term borrowing and/or equity
financing. The resulting AFUDC rate will be
calculated in accordance with 18 C.F.R. Part 201, Gas
Plant Instructions.
Exhibit M
-
Construction, Operation, and Management
Omitted. Not applicable. Construction of the facilities
will be completed by independent contractors pursuant
to contracts with those independent companies. The
companies will be selected upon the most acceptable
bids. The facilities will be integrated with DTI’s
existing properties and operated and managed in a like
manner.
Exhibit N
-
Revenues, Expenses, and Income
Attached.
Exhibit O
-
Depreciation and Depletion
Omitted. DTI will apply to the proposed facilities the
depreciation rate being applied to other facilities of like
kind – currently 2.5% for transmission facilities.
Exhibit P
-
Tariff
Attached.
12
VI. ENVIRONMENTAL IMPACT
As shown in the Environmental Resource Reports provided in Exhibit F-I
(included as Volume II), the construction and operation of these facilities are not
expected to have a significant adverse impact on the quality of human health or the
environment. The facilities have been designed to minimize and/or mitigate any
environmental or other adverse impacts. In accordance with the National
Environmental Policy Act of 1969 10/, the proposed action is not a major federal
action significantly affecting the quality of the human environment and an
environmental impact statement is not necessary for this Project.
VII. NOTICE
A form of notice suitable for publication in the Federal Register is attached.
VIII. REQUESTED AUTHORIZATION AND CONCLUSION
DTI respectfully requests that the Commission accept this abbreviated
Application for filing; publish in the Federal Register a notice of this Application; and
issue an Order no later than April 1, 2015 authorizing DTI to construct, install, own,
operate and maintain certain compression and M&R facilities located in Chemung,
Herkimer, Madison, Montgomery, Schenectady, and Tompkins Cos., NY that
comprise the Project.
In addition, DTI requests that the Commission process this Application in
accordance with the shortened procedures set forth in Rules 801 and 802 of the
Commission’s Rules of Practice and Procedure, and that the Commission omit the
10/ 42 U.S.C. 4321, et seq. (1969).
13
intermediate decision procedures. If the Commission grants this request, DTI agrees
to waive oral hearing and the opportunity for filing exceptions to the decision of the
Commission, while reserving the right to request rehearing and petition for judicial
review of the Commission’s decision.
Finally, DTI also requests that the Commission find that authorization of the
proposal herein does not constitute a major federal action significantly affecting the
quality of the human environment, within the meaning of the National Environmental
Policy Act of 1969 (42 U.S.C. 4321, et seq.). DTI will comply with all of the
Commission’s landowner notification requirements pursuant to 18 C.F.R. §157.6(d).
DTI requests that the Commission waive, to the extent necessary, its general rules and
regulations applicable to this filing in order to grant promptly the requested
authorization. Other than as noted herein, DTI knows of no other application to
supplement or effectuate this proposal that must be filed by DTI, its customers, or any
other person to this Commission or any other regulatory body.
Respectfully submitted,
/s/ Matthew R. Bley
______________________
Matthew R. Bley
Manager, Gas Transmission Certificates
Authorized Representative
Dominion Transmission, Inc.
701 East Cary Street
Richmond, VA 23219
Dated: June 2, 2014
14
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
Dominion Transmission, Inc.
)
Docket No. CP14-__-000
NOTICE OF APPLICATION FOR CERTIFICATE OF
PUBLIC CONVENIENCE AND NECESSITY
( , 2014)
Take notice that on June 2, 2014, Dominion Transmission, Inc. (DTI) with a principal
place of business at 120 Tredegar Street, Richmond, VA filed with the Federal Energy
Regulatory Commission an abbreviated application under Section 7(c) of the Natural Gas Act
seeking to construct, install, own, operate and maintain certain compression facilities located
in Chemung, Herkimer, Madison, Montgomery, Schenectady, and Tompkins Counties, New
York that comprise the New Market Project. Any questions regarding this Application
should be directed to Matthew R. Bley, Manager, Gas Transmission Certificates, Dominion
Transmission, Inc., 701 East Cary Street, Richmond, VA 23219, telephone no. (804) 7714399, facsimile no. (804) 771-4804 and e-mail: Matthew.R.Bley@dom.com.
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 CFR 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:
Kimberly D. Bose
Secretary
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-__-000
EXHIBIT C
COMPANY OFFICIALS
Director
Paul D. Koonce
Officers
Diane Leopold
Anne E. Bomar
G. Scott Hetzer
Fred G. Wood, III
Michele L. Cardiff
Pamela F. Faggert
Michael D. Frederick
Leslie N. Hartz
Becky C. Merritt
Donald R. Raikes
Brian C. Sheppard
Carter M. Reid
Title
Director
Address
120 Tredegar Street
Richmond, VA 23219
Title
Address
707 E Main Street
Richmond, VA 23219
Senior Vice President - Strategy
707 E Main Street
Richmond, VA 23219
Senior Vice President and Treasurer
100 Tredegar Street
Richmond, VA 23219
Senior Vice President – Financial
120 Tredegar Street
Management
Richmond, VA 23219
Vice President (Principal Accounting
701 E. Cary Street
Officer)
Richmond, VA 23219
Chief Environmental Officer and Vice
5000 Dominion Blvd.
President – Corporate Compliance
Glen Allen, VA 23060
Vice President – LNG Operations
2100 Cove Point Road
Lusby, MD 20657
Vice President – Pipeline Engineering
707 E Main Street
Richmond, VA 23219
Vice President – Shared Services
100 Tredegar Street
Richmond, VA 23219
Vice President - Transmission Marketing and 707 E Main Street
Business Development
Richmond, VA 23219
Vice President - Pipeline Operations
445 West Main Street
Clarksburg, WV 26302
Secretary
100 Tredegar Street
Richmond, VA 23219
President
Appointed Officers
Elwood L. Tanner
Controller
Title
Thomas J. Allen
Assistant Secretary
James R. Chapman
Assistant Treasurer
Karen W. Doggett
Assistant Secretary
John L. Newman
Assistant Treasurer
Jacqueline A. Wilson
Assistant Secretary
Exhibit C – Page 1 of 1
Address
120 Tredegar Street
Richmond, VA 23219
707 E Main Street
Richmond, VA 23219
100 Tredegar Street
Richmond, VA 23219
100 Tredegar Street
Richmond, VA 23219
100 Tredegar Street
Richmond, VA 23219
445 West Main Street
Clarksburg, WV 26302
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-__-000
EXHIBIT D
SUBSIDIARIES AND AFFILIATION
As of the date of this Application, neither Dominion Transmission, Inc. nor any of
its officers or directors, directly or indirectly, own, control or hold with power to vote, ten
percent or more of the outstanding voting securities of any person or organized group of
persons engaged in production, transportation, distribution, or sale of natural gas, or of
any person or organized group of persons engaged in the construction or financing of
such enterprises or operations, except, that:
Dominion Transmission, Inc. owns, controls and holds with power to vote all of
the common stock of the following:
o Tioga Properties, LLC, which owns certain property interests in relation to
a potential natural gas storage facility; and
o Dominion Brine, LLC, which owns certain property interests in relation to
brine leaching facilities.
Dominion Transmission, Inc. is a wholly-owned subsidiary of Dominion Gas Holdings,
LLC, which owns all of the voting securities of Dominion Transmission, Inc.
Exhibit D – Page 1 of 1
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-__-000
EXHIBIT F
LOCATION OF FACILITIES
Exhibit F – Page 1 of 2
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-__-000
EXHIBIT F-I
ENVIRONMENTAL REPORT
Exhibit F-I can be found in Volume II (PUBLIC INFORMATION).
UNDER SEPARATE COVER
Exhibit F-I – Page 1 of 1
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-__-000
EXHIBIT G, G-I and G-II
FLOW DIAGRAMS
Exhibits G and G-I:
The following flow diagrams are being submitted as Exhibits G and G-I:
(1) Prior to the New Market Project - Peak January Day. This flow diagram
reflects the contract receipts and deliveries DTI would expect on a January
peak day prior to implementing this Project. The January peak day is the
design day for the required facility additions needed to perform the
incremental services proposed in this application.
(2) With the New Market Project - Peak January Day. This flow diagram
reflects the contract receipts and deliveries DTI would expect on a January
peak day. The incremental facilities described in this Application have
been sufficiently incorporated into DTI’s operations to enable DTI to
continue to satisfy its existing firm obligations while also satisfying the
incremental firm services described herein.
Exhibit G-II:
Assumptions, bases, and formulae associated with the flow diagrams are included in
Volume IV, which is considered Critical Energy Infrastructure Information (CEII).
Exhibit G, G-I, and G-II can be found in Volume IV (CRITICAL ENERGY
INFRASTRUCTURE INFORMATION).
UNDER SEPARATE COVER
Exhibit G – Page 1 of 1
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-__-000
EXHIBIT I
MARKET DATA
In its 1999 Certificate Policy Statement, the Federal Energy Regulatory
Commission found that precedent agreements are “significant evidence of demand” to
support the approval of natural gas pipeline construction projects. Certification of New
Interstate Natural Gas Pipeline Facilities, Policy Statement, 88 FERC ¶ 61,227 at p.
61,748 (1999).
Accordingly, Dominion Transmission, Inc. (DTI) provides below a summary of
the relevant terms of the precedent agreement with its Customers, to demonstrate that its
Project is warranted by market need. This exhibit is supported by the sworn verification
of an authorized DTI official.
Market Support
The Project Customers have executed binding precedent agreements representing
a 100% market commitment for the 112,000 dekatherms per day of firm transportation
capacity that is created by the Project (see apportioned table below). This agreement
contains conditions precedent related only to the receipt of governmental authorizations
for the Project and for internal board approvals. 1/
1/ The Commission has found that customer agreements including such conditions are sufficient evidence
of market support for a pipeline project. See, e.g., East Tennessee Natural Gas Co., 98 FERC ¶ 61,331, at
p. 62,398 (2002).
Exhibit I – Page 1 of 2
Customer
Receipt /
Delivery
Primary Point
MDTQ
(Dt per Day)
Brooklyn Union
Receipt
Leidy Interconnect
Clinton Co., PA
82,000
Brooklyn Union
Delivery
Brookman Corners Interconnect
Montgomery Co., NY
82,000
Niagara Mohawk
Receipt
Leidy Interconnect
Clinton Co., PA
30,000
Niagara Mohawk
Delivery
West Schenectady Interconnect
Schenectady Co., NY
30,000
The Customers will enter into service agreements commencing on or before
November 1, 2016 for firm transportation service for a primary term of 15 years. Service
will be provided under the terms and conditions of DTI’s existing Rate Schedule FT.
As noted in the Application, in lieu of the recourse incremental firm base
reservation rate, DTI agreed with both Customers to a fixed negotiated firm
transportation base reservation rate for the primary term of the Service Agreement. DTI
also agreed that the Customers shall have a contractual right of first refusal, which shall
entitle Customer to the rights set forth in Section 24 of the General Terms and Conditions
of DTI’s FERC Gas Tariff.
Exhibit I – Page 2 of 2
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-__-000
EXHIBIT J
FEDERAL AUTHORIZATIONS
Statement:
Pursuant to 18 CFR 157.14(a)(12), the attached table identifies each Federal
authorization that the proposal will require; the Federal agency or officer, or State agency
or officer acting pursuant to delegated Federal authority, 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.
Pursuant to the regulations, only the Federal authorizations required for this project are
included herein.
Exhibit J – Page 1 of 2
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-__-000
EXHIBIT J
FEDERAL AUTHORIZATIONS
Administering Agency
Permit/Consultation
Date Submitted /
Anticipated Submittal
Date Received /
Anticipated Receipt
Federal
Federal Energy Regulatory Commission (FERC)
Section 7(c) of the Natural Gas Act – Certificate of Public
Convenience and Necessity
June 2, 2014
April 1, 2015
USFWS – New York Field Office
Endangered Species Act, Section 7 Consultation (Threatened
& Endangered Species Clearance) (for minor equipment
modification to existing gate station in NY)
May 8, 2014
December 2014
U.S. Army Corps of Engineers (USACE)
Section 404 of the Clean Water Act – Wetland and Waterbody
Crossing Permit – Temporary Impacts at Horseheads and
Brookman Corners Stations.
June 2, 2014
December 2014
New York State Department of Environmental
Conservation (NYSDEC)
Clean Water Act, 22 U.S.C. 1251 et seq., Section 401 (Section
401 Water Quality Certification)
May 30, 2014
May 2015
NYSDEC, Division of Air Resources
Air Permit – State Facility Permit
May 30, 2014
November 2014
New York State Office of Parks, Recreation, and
Historic Preservation, SHPO
Section 106 of the National Historic Preservation Act, Cultural
Resources Consultation
May 20, 2014
August 2014
Consultation with Federally Recognized Native American
Groups
March 31, 2014
June 2, 2015
New York State
Native American Tribes or Organizations
Various Native American Group Contacts
Exhibit J – Page 2 of 2
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-__-000
EXHIBIT K
COST OF FACILITIES
Exhibit K – Page 1 of 2
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-__-000
EXHIBIT K
COST OF FACILITIES
Exhibit K – Page 2 of 2
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-__-000
EXHIBIT N
REVENUES, EXPENSES, AND INCOME
Page 2 shows the revenue, expenses, and income for the proposed transportation service.
Exhibit N – Page 1 of 2
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-____-000
Total Transportation Revenues, Expenses, and Income
Line
No.
Particulars
Notes
Column (1)
1
Annual Transportation Revenue
2
3
4
5
6
Expenses:
Operation & Maintenance
Depreciation
Taxes Other Than Income
Interest
Total Transportation Expenses
7
Income Before Income Taxes
8
State & Federal Income Tax
9
Transportation Income
1/, 2/
3/
4/
1st Year
2nd Year
3rd Year
(2)
(3)
(4)
$30,400,474
$30,400,474
$30,400,474
2,451,343
3,974,014
2,575,161
4,373,726
$13,374,244
2,524,883
3,974,014
2,575,161
4,180,253
$13,254,311
2,600,630
3,974,014
2,575,161
3,955,907
$13,105,712
$17,026,230
$17,146,163
$17,294,762
6,716,794
6,419,674
6,075,142
$10,309,436
$10,726,489
$11,219,620
1/ The annual transportation revenue is the product of the proposed firm reservation rate and the firm transportation
reservation determinants.
2/ Except for the base reservation rate, the proposed service will incur all other rates, charges, surcharges,
penalties, and fuel retention applicable to firm transportation service. The revenue associated with such other
charges is not reflected in Line 1 above.
3/ Line 1 - Line 6.
4/ Line 7 - Line 8.
([KLELW13DJHRI
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-__-000
EXHIBIT P
TARIFF
Cost of Service, Rate Base, Return, and Rates
Page 2 of Exhibit P shows the monthly incremental firm base reservation rate (see Line 4,
Column 2). Project customers will pay this firm base reservation rate in addition to all other
rates, charges, surcharges, penalties, and fuel retention applicable to firm transportation
service.
Page 3 shows the cost of service for the New Market Project. DTI is basing its rates on the
average first year cost of service. DTI proposes to use its system depreciation rate of 2.5%
for the transmission facilities consistent with the rates approved in Docket No. RP97-406,
approved by final Commission order issued November 24, 1998.
Page 4 of Exhibit P shows the calculation of annual rate base and return for the first three
years of service. The pretax return of 13.7% is based on the settlement in Docket No. RP97406.
Exhibit P – Page 1 of 4
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-____-000
Transportation Rates
Line
No.
Particulars
Notes
Column (1)
Amounts
(2)
1
2
Transportation Billing Determininant Summary
Firm Transportation Reservation Determinants (Dt/d)
Annual Firm Transportation Reservation Determinants (Dt/d
1/
112,000
1,344,000
3
Transportation Rate Derivation
First Year Cost of Service
2/
$30,400,536
4
5
Monthly Incremental Firm Reservation Rate
100% Load Factor Incremental Firm Reservation Rate
3/
4/
$22.6194
$0.7437
1/
2/
3/
4/
Line 1 * 12.
Exhibit P, Page 3 of 4, Line 9, Column 2.
Line 3 / Line 2.
(Line 4 * 12) / 365.
Exhibit P - 2 of 4
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-____-000
Total Cost of Service - Transportation
Line
No.
Particulars
Notes
1st Year
2nd Year
3rd Year
(2)
(3)
(4)
Column (1)
O&M Expenses:
Transport Lines
Transport Compression
Transport M&R
Other Transport Units
1
2
3
4
5
1/
$0
2,443,702
7,641
0
$0
2,517,013
7,870
0
$0
2,592,523
8,106
0
$2,451,343
$2,524,883
$2,600,629
2/
3/
3,974,014
2,575,161
21,400,017
3,974,014
2,575,161
20,453,379
3,974,014
2,575,161
19,355,686
4/
$30,400,535
$29,527,437
$28,505,490
Total Transport O&M Expenses
6
7
8
DD&A
Other Taxes
Pretax Return
9
Total Cost of Service
1/
2/
3/
4/
O&M Expense is based on DTI historical expenses escalated at 3.0% per year.
Depreciation is based on a rate of 2.5%.
Other Taxes, including property tax, on the proposed facilities are calculated at a rate of approximately 1.6%.
Line 5 + Line 6 + Line 7 + Line 8
Exhibit P - 3 of 4
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-____-000
Transportation Rate Base and Return
Line
No.
Particulars
Notes
Column (1)
1st Year
2nd Year
3rd Year
(2)
(3)
(4)
Rate Base
1
2
3
4
5
6
7
Gross Plant (Depreciable)
Accumulated DD&A
$158,960,570 $158,960,570 $158,960,570
(1,987,007)
(5,961,021)
(9,935,036)
Net Plant
156,973,563
Accumulated Deferred Taxes
Total Rate Base
Pretax Return Rate
Pretax Return
(769,058)
1/
156,204,505
2/
3/
13.70%
$21,400,017
1/ Line 3 + Line 4.
2/ Return is based on DTI's most recent general rate case (Docket No. RP97-406).
3/ Line 5 * Line 6.
Exhibit P - 4 of 4
152,999,549
(3,704,814)
149,294,735
13.70%
$20,453,379
149,025,534
(7,743,152)
141,282,382
13.70%
$19,355,686
Exhibit P
Appendix
Dominion Transmission, Inc.
New Market Project
Docket No. CP14-____-000
Pro Forma Tariff Records
Pro Forma Tariff Record No. 10.50
Pro Forma Tariff Record No. 10.51
Incremental Transportation Rates – Settled Parties
Pro Forma Tariff Record No. 10.50.
Dominion Transmission, Inc.
FERC Gas Tariff
Fourth Revised Volume No. 1
APPLICABLE TO SETTLING PARTIES PURSUANT TO THE DECEMBER 6, 2013 STIPULATION
IN DOCKET NO. RP14-262
(FOR RATES APPLICABLE TO SEVERED PARTIES IN THE ABOVE REFERENCED DOCKET SEE TARIFF RECORD 10.51)
Summary of Incremental Transportation Rates
Base
Reservation
Rate
Rate
Schedule
Base
Usage
Rate [1]
Fuel
Retention
STEUBEN
(X-78)
$2.2823
$0.0038
0.00%
LEBANON TO LEIDY
$5.9100
$0.0000
[4]
LEIDY TO MARKET
$0.8127
$0.0034
0.00%
MID-ATLANTIC
FT/FTNN
$9.7570
[2]
TBD [3]
NORTHEAST STORAGE
FTGSS
$4.6260
[2]
[4]
COVE POINT EXPANSION
FT
$4.4285
[2]
[4]
$6.4014
[2]
[4]
RURAL VALLEY
FT
$9.7211
[2]
[4]
DOMINION HUB II
FT
$4.2524
[2]
[4]
APPALACHIAN GATEWAY
FT
$17.6430
[2]
[4]
NORTHEAST EXPANSION
FT
$8.3636
[2]
[4]
$22.6194
[2]
[4]
UTICA 7
FT
NEW MARKET
FT
[1] ACA Surcharges will be added when applicable.
[2] Maximum FT/FTNN usage rate, including surcharges, as shown on Tariff Record No. 10.5.
[3] Maximum transportation fuel retention rate as shown on Tariff Record No. 10.5 plus an incremental charge reflecting lost and
unaccounted for gas charged by Texas Eastern Transmission from time to time pursuant to the November 13, 2002 Capacity
Lease Agreement, as amended, and in accordance with the then-effective terms of Texas Eastern's FERC Gas Tariff.
[4] Maximum transportation fuel retention rate as shown on Tariff Record No. 10.5.
Incremental Transportation Rates – Severed Parties
Pro Forma Tariff Record No. 10.51.
Dominion Transmission, Inc.
FERC Gas Tariff
Fourth Revised Volume No. 1
APPLICABLE TO SEVERED PARTIES PURSUANT TO THE DECEMBER 6, 2013 STIPULATION
IN DOCKET NO. RP14-262
Summary of Incremental Transportation Rates
Base
Reservation
Rate
Rate
Schedule
Base
Usage
Rate [1]
Fuel
Retention
STEUBEN
(X-78)
$2.2823
$0.0038
0.00%
LEBANON TO LEIDY
$5.9100
$0.0000
3.50%
LEIDY TO MARKET
$0.8127
$0.0034
0.00%
MID-ATLANTIC
FT/FTNN
$9.7570
[2]
TBD [3]
NORTHEAST STORAGE
FTGSS
$4.6260
[2]
[4]
COVE POINT EXPANSION
FT
$4.4285
[2]
[4]
$6.4014
[2]
[4]
RURAL VALLEY
FT
$9.7211
[2]
[4]
DOMINION HUB II
FT
$4.2524
[2]
[4]
APPALACHIAN GATEWAY
FT
$17.6430
[2]
[4]
NORTHEAST EXPANSION
FT
$8.3636
[2]
[4]
$22.6194
[2]
[4]
UTICA 7
FT
NEW MARKET
FT
[1] ACA Surcharges will be added when applicable.
[2] Maximum FT/FTNN usage rate, including surcharges, as shown on Tariff Record No. 10.6.
[3] Maximum transportation fuel retention rate as shown on Tariff Record No. 10.6 plus an incremental charge reflecting lost and
unaccounted for gas charged by Texas Eastern Transmission from time to time pursuant to the November 13, 2002 Capacity
Lease Agreement, as amended, and in accordance with the then-effective terms of Texas Eastern's FERC Gas Tariff.
[4] Maximum transportation fuel retention rate as shown on Tariff Record No. 10.6.