Senate Bill No. 729
(By Senators Ross, Helmick, Dugan, Buckalew, Boley, Minear,
Deem, Ball, Hunter, Sprouse, Oliverio, Love, Schoonover, Sharpe,
Dittmar, Kessler, Fanning, Prezioso, White, Snyder, Anderson,
Bailey, Walker, Bowman, Wooton, Jackson, Craigo, Chafin,
McKenzie, Scott and Tomblin, Mr. President)
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[Introduced February 23, 1998; referred to the
Committee on Energy, Industry and Mining.]
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A BILL to amend and reenact section three-a, article three,
chapter twenty-four of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
transportation of natural gas; and requiring justification
of certain rates in excess of twenty-five cents per thousand
cubic feet.
Be it enacted by the Legislature of West Virginia:
That section three-a, article three, chapter twenty-four of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 3. DUTIES AND PRIVILEGES OF PUBLIC UTILITIES SUBJECT TO
RULES OF COMMISSION.
§24-3-3a. Gas utility pipelines declared as common carriers;
commission approval of certain transportation.
(a) As used in this section or in section eleven, article
two of this chapter:
(1) "Intrastate pipeline" means (i) any utility or (ii) any
other person, firm or corporation engaged in natural gas
transportation in intrastate commerce to or for another person,
firm or corporation for compensation.
(2) "Interstate pipeline" means any person, firm or
corporation engaged in natural gas transportation subject to the
jurisdiction of the FERC under the Natural Gas Act or the Natural
Gas Policy Act of 1978.
(3) "Local distribution company" means any person, other
than any interstate pipeline or any intrastate pipeline, engaged
in transportation or local distribution of natural gas and the
sale of natural gas for ultimate consumption.
(4) "Intrastate commerce" includes the production,
gathering, treatment, processing, transportation and delivery of
natural gas entirely within this state.
(5) "Transportation" includes exchange, backhaul,
displacement or other means of transportation.
(6) "FERC" means the federal energy regulatory commission.
(b) The commission may by rule or order, authorize and
require the transportation of natural gas in intrastate commerce
by intrastate pipelines, by interstate pipelines with unused or
excess capacity not needed to meet interstate commerce demands or
by local distribution companies for any person for one or more
uses, as defined, by rule, by the commission in the case of:
(1) Natural gas sold by a producer, pipeline or other seller
to such the person; or
(2) Natural gas produced by such the person.
(c) For reasons of safety, deliverability or operational
efficiency the commission may, in its discretion, by rule or
order, exclude from the requirements of this section any part of
any pipeline solely dedicated to storage, or gathering, or low
pressure distribution of natural gas.
(d) (1) The rates and charges of any interstate pipeline
with respect to any transportation authorized and required under
subsection (b) of this section shall be just and reasonable and
computed by the public service commission in accordance with the
guidelines set forth by the FERC and in effect upon the date of
application by the commission for the transportation of natural
gas by any interstate pipeline on behalf of any intrastate
pipeline or any local distribution company.
(2) The rates and charges of any intrastate pipeline with
respect to any transportation authorized and required under
subsection (b) of this section shall be fair and reasonable and
may not exceed an amount which is reasonably comparable to the
rates and charges which interstate pipelines would be permitted
to charge for providing similar transportation service. The
computation of such rates and charges by the public service
commission shall be in accordance with the guidelines set forth
by the FERC and in effect upon the date of application by the
commission for the transportation of natural gas by any
intrastate pipeline in behalf of any interstate pipeline or any
local distribution company served by any interstate pipeline.
(3) Notwithstanding the provisions of subdivisions (1) and
(2) of this subsection, any interstate or intrastate pipeline
that transports in excess of a daily average of five million
cubic feet of natural gas in the state shall present and justify
to the commission and the legislative rule-making review
committee, any rates charged in excess of twenty-five cents per
thousand cubic feet.
(e) The provisions of this article and each section,
subsection, subdivision, paragraph and subparagraph thereof shall
be of this article, are severable from the provisions of each
other subparagraph, paragraph, subdivision, subsection, section, article or chapter of this code so that if any provision of this
article be is held void, the remaining provisions of this act and
this code shall remain valid.
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(NOTE: The purpose of this bill is to require major natural
gas transmission companies to present and justify to the public
service commission and the legislative rule-making review
committee, any rates charged for transporting or gathering
natural gas, in excess of twenty-five cents per thousand cubic
feet.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.)
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ENERGY, INDUSTRY AND MINING COMMITTEE AMENDMENT
On page one, by striking out the title and substituting
therefor a new title, to read as follows:
Eng. Senate Bill No. 729--A Bill to amend and reenact
section three-a, article three, chapter twenty-four of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, relating to transportation of natural gas; public
service commission; interstate and intrastate pipelines; pipeline
rates and charges to be just and reasonable; and requiring
justification for rates in excess of twenty-five cents per
thousand cubic feet.