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    Read the Federal Energy Regulatory Commission Petition

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    5 views9 pages

    Federal Energy Regulatory Commission Petition

    Uploaded by

    savannahnow.com
    Read the Federal Energy Regulatory Commission Petition

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 9
    Colonial Pipeline Company ‘Sam Whitehead Phone: 678/762-2333 Public Affairs Manager Fax: 678/762-2465 Project ExCEL August 24, 2007 Mr. Jeff Baker, P. E, ‘State Utilities Engineer Department of Transportation ‘955 E. Confederate Ave., Bldg 24 Alanta, GA 30316 Dear Mr. Baker: |m 2006 Colonial Pipeline Company submitted a petition to the Federal Energy Regulatory ‘Commission (FERC) asking the FERC to establish a rate-making framework to support ‘expansion of the Colonial system. The FERC response issued in July 2006 wes favorable, ||am attaching copies of comments made by FERC Chairman Joseph T. Kelliher in support of the expansion. | am also attaching letters of support from Colonials shippers that were sent to the FERC duting the comment period before the FERC responded to the Colonial petition. While these letters were not specifically responsive to the GDOT Certificate public comment process, they do provide evidence of support of the need for the new infrastructure in Colonial's service market, which includes Georgia. Several of the shipper letters were fled by Petroleum product suppliers with significant market presence in the state of Georgia, including Mansfield, QuikTrip, and Racetrac Petroleum, which has its headquarters in Georgia. ee eee apeeeareaa | ‘eeeiseamert eal hpi te Gn Dopo Tangri scene Gao mee coat ae Seen saree aout bam Whe Ce an 1185 Sanctuary Parkway, Sute 100 Alpareta, Georgia 9004-4738 .0:8ox 1624 Aphareta, oorga 300009004 Federal Energy Regulatory Commission July 20, 2006 ‘Open Commission Meeting ‘Statement of Chairman Joseph T, Kelliher Tkem No. G-1; Colonial Pipeline Company (ORO6- 000) “The declaratory order issued by the Commission today grants the essentil clements of Colonial Pipeline Company’ petton for declaratory erder and should ‘make possible a badly needed $1 bilion expansion of the Colenial’s pipeline System. "Our action today wil assure adequate supplles of gasoline and other Detroleum products in the Southeast and Mid-Atlantle states and minimize future Dice increases that nwo to transportation constraint, Our acton Is especily timely, given consumer concems about gasoline prices. Every day, Colonial Pipeline transports 2.4 millon gallons of gasoline and other refined petroleum products over a 5,519 mile system that runs fron Houston, Texos to Linden, New Jersey. “This system supplles gasoline to the Southeast and Mid Atlantic states, serving major cities such as New York, Philadephia, Atlanta, Baltimore, as well as Washington, D.C. Colonial is primary source of supply to this region, The Colonial system was bullt over 40 years ago. Since that time, demand has grown substantially, the system has since become constrained, and Colonial has had to prorete or curtail shipments. In 2004, some movements on Colonials systern Were prorated 25 percent of the time. Colonial indleates that by 2008, curtailment wall occur for most of the year. Ifthe Colonial system isnot expanted, prorstioning Will become 9 routine occurrence. These bottlenecks have the affect of rasing {gasoline prices and the prices of other petroleum produce, and ae the constraints become more severe the price effects wil become tat much greater We had a glimpse of what this could mean last year. Last year, Hurricanes Ketrina {and Rita temporarily disrupted operation of Colonial pipeline, ct from physial ‘damage to Colonia, but from loss of electrical power needed to Operte the pipeline. We saw sudden and large gasoline price Increases In the Southeast and Mid-AUientic states, ur order clears the way forthe commencement of construction of an expansion in the Colonial system later this year, with operation to follow in 2010, We have taken care to protect the consumer, not only by acting to assure adequate ‘supplies of gasoline and other petroleum products, but aleo in cur review othe Proposed mechanism Colonial would use to recaver the expansion costs, The Commission agreed that the recovery mechanism ts appropri tn this Instance if Colonial demonstrates that the revenues earned by applicavon of is grandfathered transportation rate to the expansion volumes do not allow for recovery of expansion conte Federal Energy Regulatory Commission uly 20, 2006 ‘Open Commission Meeting Statement of Chairman Joseph T. Kelliher We are not setting any specific rate In this order. When Colonial actualy files to recover the expansion costs, it must demonstrate that the recovery meckanism le ‘concictent with this order as well os the Commission's other ratemaldng prnapies ae 200606305008 Received FERC OS8C 06/30/2006 09:59:00 AM Dorkard oR06-8-000 b arate OF company MANSPIEL {225 Aiport aioe SW June 22, 2006 Secretary Federal Energy Regulatory Commission 888 First Street NE. ‘Washingion D.C 20426 Re; Docket # ORO5-8 ‘To Whom It May Concern: ‘Lam writing to express the support of Mansfeld Oil Company to Coloaial Pipelie’s Petition for ‘Declaratory Order to facilitate an expansion of its system (Docket # OROG-8). Mansfield isa large distibutor and retailer of transportation fuels throughout the Unked States including a significant presence in markeis served by Colonial pipeline. As a purchaser of fuel in these markets and as «likely future shipper on Colonial, Mansfield has a significant interest ia ‘he fee flow of products on Colonial. Is clear tows that growing demand for products shipped bby Colonial will soon outstrip the current eapacity to deliver these product to the murkets served bby Colonial. The supply infrastructure is routinely tested, and I fear that, absent an expansion of| this magnitude delivery markes, including the metropolitan areas of Atlanta, Chariot, ‘Washington D.C. and Baltimore, could be faced wih increases in product prices or, worse yet, supply shortages resulting from insufficient pipeline capacity. Further, I believe that an iavestment of roughly $1 billion to put this capacity in place is & substantial commitment for which Colonial shouldbe able to expecta reasonable retin. Thave ‘reviewed that proposed tariff methodology and believe thatthe “Uniform Rate Comzoneat", hich is expected to bea modest increase to Colonial’ existing tariffs is afar and rasonsble ‘pproach and, es purchaser of transportation Fels, we believe that the proposed rate methodology isa reasonable approach and will provide the needed mechanism tallow the ‘capacity tbe built, appreciate your time in reviewing my letter and hope tht you wll take my views eto account as you evaluate Colonal’s petition, Sincerely, JA. Alexander President 200c0707S0N5:waceived: ppRe osHC°O7/DR/ 2006 0 AM DeSKOLE onDE-8-000 GEORGE E, WARREN CORPORATION Energy 500 Ocean Prize Yeu Bech Fait 32905 1585 pons (7B 287100, Reve une 23, 2006 Seereiery = Feder Bncagy Regalstory Commission BGEFint Suet NEL ‘Washington, D.C. 20826 et Re: Dock HOROER : “To Whom IeMay Concern: : ‘Tam writing to exes te suppont of George Warren ty Colonial Pipeline’ Petition fuca Spans Oto alan pepo isrpoa ees ROE, ‘AS ahipper om Colonial ict dae tos that growing demand for produes sipped by ‘Colonial wil 2x ontsip the exe capacity to deliver these products fo the mers Srl Coleen fried ano tebe an expansion ofthis mayaiinde, delivery markets incline the metropolitan areas 0 Alana, Chote Wasngion DC. ad lino cou be faced wth nesses pilus: prices br, worse yet, Susy shoriages resuling fom fasten pipeline eapncity an Furies, I believe that am iavestment of oughly 1 bln oat this espcity ma place isa sutststal commit fbr which Colrilshonld beable te expect areaconable rum, “Uhave reviewed tbe propos tiff methodlogy and believe tha te "Uniform Rate ‘Compones’, whichis expects to He « modest inccaset Colones existing tan, sa “at and reasons approsch and a a hpi, we are willing to absorb the rate crease ‘nexchaage for the edtions eapaity. Farle, we support the propased rats design © beats; ince the sane stnodat wil be applied unify to all abvements, it vl not Anpath compe: landscape teins or destinations, ‘Tapprelste your tines in geibwing mp’ ete and hopo that you wll take my views fo = =| sssomtt you evan Colona pttin, Sinoaely, ‘inothy Smith Operations Manages Vera Beach New York Louder ‘Cheing Adember - New York Mercantile Exchange WofEicial FERC-Cenerated EDF of 20060627-0201 necatved by FERC GEEC 06/14/2006 4n beckett: OROs-8-000 TPIGINAL OFFICE OF THE SECRETARY. ‘Sheu ater eet 08 ‘teen Wh HI P J een Surpay June 5, 2006 Lut? a Federal Energy Regulatory Commiss 888 Fist Steet NEL ‘Washington D.C 20426 Re: Docket # ORO6-8 To Whom ItMay Concern: ‘Lam writing o expres the support of United Pare! Service (UPS)10 Colonial Pipeline’s Petition for « Declaratory Order o facilitate an expansion of is system (Docket # ORDS- ®. ‘As shipper on Colonial and as a large end user of fue, it is clear tus that growing

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