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.