Enclosed for filing on behalf of Hope Gas, Inc., dba Dominion Hope, please find the original and 12 copies of its Petition for Consent and Approval.

Transcription

1 Dominion Resources Services, In<. Law Department 925 White Oaks Boulevard, Bridgeport, W February 2,2016 Ingrid Ferrell, Executive Secretary Public Service Commission of West Virginia 201 Brooks Street Charleston, West Virginia Re: CASE NO. 16- c[ 7Li -G-PC Dear Ms. Ferrell: HOPE GAS, INC., dba DOMINION HOPE Petition for consent and approval to enter into an Agreement to extend a Discount Letter Agreement with an affiliate, Dominion Transmission, Inc. Enclosed for filing on behalf of Hope Gas, Inc., dba Dominion Hope, please find the original and 12 copies of its Petition for Consent and Approval. Please file the enclosed petition and distribute the additional copies to the appropriate parties at the Commission. Thank you in advance for your attention to the foregoing, and please contact me should you have any questions. w J. Brien SeniorCo sel BJF/mdm Enclosures cc (w/encl.): Mark E. Barnes Jo Carol Fame1

2 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON CASE NO G-PC HOPE GAS, INC., dba DOMINION HOPE Petition for consent and approval to enter into an Agreement to extend a Discount Letter Agreement with an affiliate, Dominion Transmission, Inc. PETITION FOR CONSENT AND APPROVAL COMES NOW Hope Gas, Inc., dba Dominion Hope ( Dominion Hope ) and, pursuant to W. VA. CODE and W. VA. CODE R. $ and of the Commission s Rules of Practice and Procedure ( Rule or Rules ), respectfully petitions the Public Service Commission of West Virginia (the Commission ) for consent and approval to enter into a letter agreement ( Discount Letter Agreement ) with its affiliate, Dominion Transmission, Inc. ( DTI ). The 2016 Discount Letter Agreement between Dominion Hope and DTI extends the discounted rate that Dominion Hope has received from DTI for firm gas transportation service pursuant to a 2015 Discount Letter Agreement (defined below). Since the 2016 Discount Letter Agreement enables Dominion Hope to continue to receive a discounted rate for fm transportation, Dominion Hope s customers benefit from the 2016 Discount Letter Agreement. and 10.10: In support of this Petition, Dominion Hope states as follows as required by Rules The name and address of Dominion Hope: Hope Gas, Inc., dba Dominion Hope 48 Columbia Boulevard Clarksburg, West Virginia 26301

3 2. The name and address of the affiliate, DTI, with whom Dominion Hope desires to enter into the Agreement: Dominion Transmission, Inc. 120 Tredegar Street Riverside Building Richmond, Virginia Dominion Hope and DTI are direct, wholly-owned subsidiaries of Dominion Resources, Inc. ( Dominion ). DTI is incorporated under the laws of the state of Delaware. As an interstate pipeline, DTI is not a utility subject to the jurisdiction of this Commission A copy of the 2016 Discount Letter Agreement is attached as Attachment A. Dominion Hope and DTI are parties to a January 27, 2006 letter agreement, attached as Attachment B ( Original Discount Letter Agreement ), which provides discounted usage and fuel charges to Dominion Hope for the period August 1,2005 through March 3 1,2015 under Dominion Hope s Service Agreement Applicable to Transportation of Natural Gas under DTI s Rate Schedule FTNN ( FTNN Service Agreement ). The 2015 Discount Letter Agreement, attached as Attachment C, was executed by Dominion Hope and DTI on February 9, 2015, providing discount usage and fuel charges to Dominion Hope for the period April 1, 2015 through March 31,2016 on terms virtually identical to the Original Discount Letter Agreement. 6. Dominion Hope s petition seeking the Commission s consent and approval for the Original Discount Letter Agreement and 2015 Discount Letter Agreement was previously granted by this Commission under W. Va. Code Sec Hope Gas, Inc., dba Dominion Hope, Case No G-PC (Rec. Dec., June 23,2006; Final Order, July 13,2006); and Hope Gas, Inc., dba Dominion Hope, Case No G-PC (Final Order, March 27,2015). 2

4 7. The term in the 2015 Discount Letter Agreement does not automatically rollover on a year-to-year basis as does the term of the underlying FTNN Service Agreement. Consequently, the 2015 Discount Letter Agreement is set to expire March 31, The 2016 Discount Letter Agreement, for the period April 1,2016 through March 31, 2017, continues the discounted rate DTI provides to Dominion Hope for firm gas transportation service for certain gas delivery points along DTI s system in accordance with the terms and conditions of the FTNN Service Agreement. The Agreement is virtually identical in all other respects to the 2015 Discount Letter Agreement. 9. By extending the term of the rate discount set forth in the 2016 Discount Letter Agreement, Dominion Hope and its customers will continue to enjoy the benefits from the 2015 Discount Letter Agreement being both discounted usage and fuel charges at certain DTI receipt points identified therein. 10. Pursuant to Rule 10.9, Dominion Hope requests a waiver of the requirement to provide the financial or other information otherwise required by Rule 21 with respect to 2 At the time the Discount Letter Agreement was entered into, Dominion Hope and DTI were parties to the FTNN Service Agreement (Contract No ), dated April I, 2005, which was approved by the Commission Hope Gus, Inc., dba Dominion Hope, Case No G-PC (Comm. Order, Aug. 31, 2005). A subsequent version of the FTNN Service Agreement (Contract No ) dated December 31, 2009, and first and second amendments thereto dated January 21, 2010 and January 29, 2010, were also approved by the Commission Hope Gas, Inc., dba Dominion Hope, Case No G-PC (Rec. Dec., Oct. 21, 2010; Final Order, Nov. 10, 2010). Throughout its term, the Discount Letter Agreement has continued to apply to each version of the FTNN Service Agreement. Pursuant to the FTNN Service Agreement Article 111, Term of Agreement, its initial primary, ten-year term ended on March 31,2015; however, it continues %om year to year thereafter, until either party terminates... by giving written notice to the other at least twelve months prior to the start of the next contract year. The FTNN Service Agreement will continue to be in effect ufrer March 31, 2016 under this evergreen term provision. The terms of Dominion Hope s other service agreements with DTI previously approved by the Commission that have a primary term ending March 31, 2016 will also continue to be in effect after March 31, 2016, pursuant to their respective evergreen term provisions; specifically, Rate Schedule IT Service Agreement (Contract No. E00373) dated April 1, 2005 approved in Case No G-PC, Rate Schedule GSS Service Agreement (Contract No ) dated April 1, 2005 approved in Case No G-PC, and Rate Schedule FTNN-GSS Service Agreement (Contract No ) dated February 26,2010 approved in Case No G-PC. 3

5 Dominion Hope and DTI. As direct, wholly-owned subsidiaries of Dominion, Dominion Hope and DTI are in sound financial condition. 11. The 2016 Discount Letter Agreement is in the public interest for the reasons stated above as well as those underlying the Commission s prior consent and approval of the Original Discount Letter Agreement and 2015 Discount Letter Agreement. Moreover, entering into the 2016 Discount Letter Agreement will have no negative effect upon Dominion Hope s provision of natural gas service in West Virginia. In fact, Commission approval of the 2016 Discount Letter Agreement will allow Dominion Hope to continue providing cost efficient service to its customers. 12. Thus, pursuant to W. VA. CODE and Rule 10.10, Dominion Hope requests that the Commission grant this Petition because the 2016 Discount Letter Agreement is reasonable, it does not give Dominion Hope or DTI an undue advantage over the other as it effectuates the continuation of existing discounted charges for the benefit of Dominion Hope customers, and the proposal does not adversely affect the public in this state. WHEREFORE, Dominion Hope respectfully requests the following: That the Commission grant its consent and approval to Dominion Hope entering into the 2016 Discount Letter Agreement with its affiliate, DTI; That the Commission waive the requirement to provide Rule 21 information on the financial condition of Dominion Hope and DTI; That the Commission retain this matter and not assign it to the Division of Administrative Law Judges; That notice and hearing on the Petition be waived; and That the Commission grant any other relief it deems appropriate. 4

6 Respectfully submitted, HOPE GAS;, INC., dba DOMINION HOPE Senior Counsel, Law Department Dominion Resources Services, Inc. 925 White Oaks Boulevard Bridgeport, WV (681) Counsel for Hope Gas, Inc., dba Dominion Hope 5

7 Attachmeut A Discount Letter Aereement

8 Dominion Transmission, Inc. 707 E. Main Streer. Richmond. VA dorn.com January 1 1,20 16 Mr. Ron Walther Director, LDC Gas Supply Hope Gas, Inc. dba Dominion Hope 120 Tredegar Street Richmond, VA Dear Ron: Re: Discount Letter Agreement to FTNN Contract No , Effective April 1,2016 Dominion Transmission, Inc. ( DTI ) and Hope Gas, Inc. dba Dominion Hope, (Dominion Hope) are parties to a Service Agreement under DTI s Rate Schedule FTNN dated December 31,2009, as amended January 21,2010 and January 29,2010, Contract No ( 2009 Service Agreement ), by which DTI has agreed to provide certain firm transportation service for Dominion Hope. Because the February 6,2015 Discount Letter Agreement applies only through March 31,2016, the parties now agree to extend the discount subject to all necessary regulatory approval. Accordingly, for service at the points described in Paragraph 1 below, the rates for such service shall be discounted from DTs otherwise-applicable maximum rates for the additional year as follows: 1. For the period April 1,2016 through March 31,2017, the Usage Charge for the volumes from Dominion Hope s HT-9 line that feeds into DTI at the Hill Junction interconnection and from Dominion Hope s line HM-7 that feeds into DTI at the AUen Farm interconnection or from Dominion Hope s line HM-33 that feeds into DTI at the Shock interconnection shall be the then currently effective minimum usage charge, including applicable surcharges stated in DTI s FERC Gas tas, which is currently $.0101/Dt (with applicable surcharges). 2. DTI will waive the fuel charge for the period April 1,2016 through March 31, 2017 for all volumes delivered to DTI at the receipt points noted in Paragraph 1. For any other Receipt Points, fuel charges will apply. This waiver is only applicable to the extent that no fuel is used to move gas from Dominion Hope s HT-9 line that feeds into DTI at the Hill Junction interconnection and from Dominion Hope s line HM-7 that feeds into DTI at the Allen Farm interconnection or from Dominion Hope s line HM-33 that feeds into DTI at the Shock interconnection. In the event DTI changes its operations that require the use of fuel to move gas from Dominion Hope s HT-9 line that feeds into DTI at the Hill Junction interconnection and from Dominion Hope s line HM-7 that feeds into

9 Mr. Ron Walther January 11,2015 Page 2 DTI at the Allen Farm interconnection or from Dominion Hope s line HM-33 that feeds into DTI at the Shock interconnection, DTI is required to charge fuel. 3. This Letter Agreement shall supersede the rate provisions of any prior agreement or commitment by DTI to provide service at the referenced points of delivery that is lower than the rate provisions stated herein. At Dominion Hope s request, DTI will provide documentation andor workpapers as may be required by Dominion Hope to support the rate provisions herein. Please execute both original documents as indicated below, and return them via overnight service to: Yvette Bell, Legal Specialist Dominion Resources Services, Inc. 120 Tredegar Street Richmond, VA We will then execute these agreements as provided below, and return one of the two originals to you for your files. Should you have any questions with regard to this Discount Letter Agreement or the 2009 Service Agreement, please contact Judy Watson at (804) Sincerely, esident - Marketing Accepted and Agreed To This HOPE GAS, Inc. dba Dominion Hope

10 Attachment B - Orieinal Discount Letter Avreement

11 " January 27,2006 Mr. Ron Walther Director, LDC'Gas Supply Hope Gas, Inc. dba Dominion Hope 120 Tredegar Street Richmond, VA Dear Ron: Re: Discount Letter Agreement to FTNN Contract No , Effective August 1,2005 Dominion Transmission, Inc. ('?)TI') and Hope Gas, Inc. dba Dominion Hope, (Dominion Hope) have entered into a Service Agreement under DTI's Rate Schedule FTNN, effective as of April 1,2005, ("April 2005 FTNN Agreement"), by which DTI has agreed to provide certain firm transportation senrice for Dominion Hope. DTI and Dominion Hope have further agreed that for service at the points described in Paragraph 1 below that the rates for such service shall be discounted fiom DTI's otherwise-applicable maximum rates as follows: 1. FortheperiodAugust throughmach31,2015, theusage Charge forthe volumes fiom Dominion Hope's HT-9 line that feeds into DTI at the Hill Junction interconnection and from Dominion Hope's line Hh4-7 that feeds into DTI at the Allen Farm interconnection or from Dominion Hope's line HM-33 that feeds into DTI at the Shock interconnection shall be thethen currently effective minimum usage charge, including applicable surcharges stated in DTI's FERC Gas &ft, which is currently %.0101/Dt (with applicable surcharges) DTI wil waive the fuel charge for the primary term of the April 2005 FTNN Agreement for all volumes delivered to DTI at the receipt points noted in Paragraph 1. For any other Receipt Points, fuel charges will apply. This Letter Agreement shall supersede the rate provisions of any prior agreement or commitment by DTI to provide senrice at the referenced points of delivery that is lower than the rate provisions stated herein. At Dominion Hope's request, DTI will provide documentation andor workpapers as may be required by Dominion Hope to support the rate provisions herein.

12 Mr. Ron Walther J a r q 27,2M)6 Page 2 Please execute both original documents as indicated below, and return them via overnight service to: Mr. Joshua Eakle, Manager, Interstate Marketing c/o Teny Cole Dominion Transmission, Inc. 120 Tredegar Street, - 6" Floor, Riverside Richmond, VA We will then execute these agreements as provided below, and return one of the two originals to you for your files. Should you have any questions with regard to this Discount Letter Agreement or the April 2005 FTNN Agreement, please contact Josh Eakle at (804) Sincerely, DOMINION TRANSMISSION, INC. Xnald R hikes Managing Director, Transmission Marketing and Customer Services Accepted and Agreed To This &L%ay of January 2006 HOPE GAS, Inc dba Dominion Hope By: Its: Director, b C Gas Supply

13 Attachment C Discount Letter Agreement

14 February 6,2015 MI. Ron Walther Director, LDC Gas Supply Hope Gas, Inc. dba Dominion Hope 120 Tredegar Street Richmond, VA Dear Ron: Re: Discount Letter Agreement to FTNN Contract No , Effective April 1,2015 Dominion Transmission, Inc. ('DTI") and Hope Gas, Inc. dba Dominion Hope, (Dominion Hope) are parries io a Service Agreement under DTI's Rate Schedule FTNN dated December 31,2009, as amended January 21,2010 and January 29,2010, ContractNo ("2009 Service Agreement"), by which DTI has agreed to provide certain firm transportation service for Dominion Hope. Because the January 27,2006 Discount Letter Agreement applies only through March 31,2015. the parties now agree to extend the discount subject to all necessary regulatory approval. Accordingly, for service at the points described in Paragraph 1 below the rates for such service shall be discounted from DTI's otherwise-applicable maximum rates for the additional year as follows: 1. For the period April 1,2015 through March 31,2016, the Usage Charge for the volumes from Dominion Hope's HT-9 line that feeds into DTI at the Hill Junction interconnection and from Dominion Hope's h e HM-7 that feeds into DTI at the Allen Farm interconnection or from Dominion Hope's line HM-33 that feeds into DTI at the Shock interconnection shall be the then currently effective minimum usage charge. including applicable surcharges stated in DTI's FERC Gas tariff, which is currenrly %.0101/Dt(with applicable surcharges). 2. DTI will waive the fuel charge for the period April 1,2015 through March 31, 2016 for al! volumes delivered to DTI at the receipt points noted in Paragraph 1. For any other Receipt Points, fuel charges will apply. This waiver is only applicable to rhe exrent that no fuel is used to move gas from Dominion Hope's HT-9 line thx feeds into DTI at the Hill Junction interconnection and from Dominion Hope's line HM-7 that feeds into DTI at the Allen Farm interconnection or from Dornioion Hope's line HM-33 rhat feeds into DTI at the Shock inrerconnecnm. In the event DTI changes its operations that require the use of fuel to move gas tiom Dominion Hope's HT-9 line that feeds into DTI at the Hill Junction intxcomection and from Dominion Hope's line HM-7 that feeds into

15 MI. Kon waimer February 6,2015 Page 2 DTI at the Allen Farm interconnection or from Dominion Hope s line HM-33 that feeds into DTI at the Shock interconnection, DTI is required to charge fuel. 3. This Letter Agreement shall supersede the rate provisions of any prior agreement or commitment by DTI to provide service at the referenced points of delivery that is lower than the rate provisions stated herein. At Dominion Hope s request, DTI will provide documentation and/or workpapers as may be required by Dominion Hope to support the rate provisions herein. Please execute both original documents as indicated below, and return them via ovemight service to: Yvette Bell, Legal Specialist Dominion Resources Services, Inc. 120 Tredegar Street Richmond, VA We will then execute these agreements as provided below, and return one of the two originals to you for your files. Should you have any questions with regard to this Discount Letter Ageement or the 2009 Service Agreement, please contact Judy Watson at (804) Sincerely, Accepted and Agreed To This qc-day of *e6;~!,,2015 HOPE GAS, Inc. dba Dominion Hope

16 VERIFICATION STATE OF WEST VIRGINIA, COUNTY OF HARRISON to-wit: Mark E. Barnes, after being duly sworn upon his oath states that he is Director of Gas Operations for Hope Gas, Inc., dba Dominion Hope, the Petitioner named in the attached and foregoing Petition for Consent and Approval and that he has read the same, and the statements and facts contained therein are true and correct, except insofar as they are therein stated to be on information and belief, and that, insofar as they are therein stated to be on information and belief, he believes them to be true. Taken, sworn to and subscribed before me this - J day Director of Gas Operations, of 1 & Y-L,~ /&