NEW ENGLAND POWER COMPANY
FE DOCKET NO. 97-109-NG
I. DESCRIPTION OF REQUEST
On December 3, 1997, New England Power Company (NEP) filed an application with the Office of Fossil Energy of the Department of Energy (DOE), under section 3 of the Natural Gas Act (NGA)(1), and DOE Delegation Order Nos. 0204-111 and 0204-127, requesting blanket authorization to import up to 47.5 Bcf of natural gas per day from Canada over a two-year term beginning February 1, 1998.(2) NEP, a wholesale generation subsidiary of New England Electric System, is a Massachusetts corporation with its principal place of business in Westborough, Massachusetts. NEP is engaged in the generation, transmission, and sale of electric power in the New England region and is a major source of power to the New England Power Pool. NEP uses the Canadian spot market gas to supplement other long-term firm imported gas supplies to generate electricity at its Brayton Point Unit 4 generating station in Somerset, Massachusetts, and its Manchester Street generating station in Providence, Rhode Island. In addition, NEP sells on the domestic spot market the imported gas that it does not use at its electric generating facilities. The requested authorization does not involve the construction of new pipeline facilities.
The application filed by NEP has been evaluated to determine if the proposed import arrangement meets the public interest requirement of section 3 of the NGA, as amended by section 201 of the Energy Policy Act of 1992 (Pub. L. 102-486). Under section 3(c), the importation of natural gas from a nation with which there is in effect a free trade agreement requiring national treatment for trade in natural gas is deemed to be consistent with the public interest and must be granted without modification or delay. The authorization sought by NEP to import natural gas from Canada, a nation with which a free trade agreement is in effect, meets the section 3(c) criterion and, therefore, is consistent with the public interest. This blanket order authorizes transactions under contracts with terms of no longer than two years.
Pursuant to section 3 of the Natural Gas Act, it is ordered that:
A. New England Power Company (NEP) is authorized to import from Canada, at any point on the international border, up to 47.5 Bcf of natural gas over the two-year term beginning on February 1, 1998, and extending through January 31, 2000.
B. With respect to the natural gas imports authorized by this Order, NEP shall file with the Office of Natural Gas & Petroleum Import and Export Activities, within 30 days following each calendar quarter, quarterly reports indicating whether imports of natural gas have been made. If no imports have been made, a report of "no activity" for that calendar quarter must be filed. If imports occur, NEP must report total monthly volumes in Mcf and the average purchase price per MMBtu at the international border. The reports shall also provide the details of each import transaction, including: (1) the name of the seller(s); (2) the name of the purchaser(s); (3) the estimated or actual duration of the agreement(s); (4) the name of the U.S. transporter(s); (5) the point(s) of entry; (6) the geographic market(s) served (by state); (7) whether sales are being made on an interruptible or firm basis; and, if applicable, (8) the per unit (MMBtu) demand/commodity/reservation charge breakdown of the contract price.
C. Quarterly reports shall be filed with the Office of Natural Gas & Petroleum Import and Export Activities, Fossil Energy, Room 3F-056, FE-34, Forrestal Building, 1000 Independence Avenue, S.W., Washington, D.C., 20585.
D. The first quarterly report required by Ordering Paragraph B of this Order is due not later than April 30, 1998, and should cover the period from the February 1, 1998, until the end of the first calendar quarter, March 31, 1998.
Issued in Washington, D.C., on January 08, 1998.
John W. Glynn
Manager, Natural Gas Regulation
Office of Natural Gas & Petroleum
Import and Export Activities
Office of Fossil Energy
1. 1/ 15 U.S.C. § 717b.
2. 2/ NEP's existing blanket import authorization granted by DOE/FE Order No. 1132 dated December 19, 1995 (1 FE ¶ 71,216) expires January 31, 1998.