7. Comments on Draft Decision
The draft decision of the Administrative Law Judge in this matter was mailed to the parties in accordance with pub. Util. Code § 311(g)(1) and Rule 77.7 of the Rules of Practice and Procedure. Comments were filed on _________ and reply comments were filed on ___________.
1. The 5% rate increase sought by Pacific Pipeline applies only to the Line 63 System and not to the Pacific System.
2. The last increase in Line 63 System rates occurred in 1996, when the Commission authorized an 8% increase.
3. Capital additions to the Line 63 System since 1996 total $27 million.
4. Average trunk line volumes on Line 63 have decreased from 99,700 barrels per day in 1998 to 68,500 in the second quarter of the year 2000.
5. The forecasted return on equity for the Line 63 System for test year August 1, 2000, to July 31, 2001, is 4.36%.
6. The requested increase will provide Pacific Pipeline with the opportunity to earn an overall return of 7.56% and an equity return of 7.1%.
7. Pursuant to Pub. Util. Code § 455.3, Pacific Pipeline has given the Commission and all shippers no less than 30 days' notice of the rate change and it has made the change effective as of October 1, 2000.
8. EOTT has failed to state a case for suspension of the new rates, and it has not set forth facts necessitating a hearing.
1. The application should be approved.
2. The protest by EOTT should be dismissed.
IT IS ORDERED that:
1. Pacific Pipeline System LLC (Pacific Pipeline) is authorized to increase its rates and charges for all crude oil transportation services on its Line 63 System by 5%, effective October 1, 2000.
2. The protest of EOTT Energy Operating Limited Partnership is dismissed.
3. Pacific Pipeline shall conform its tariffs on file with the Commission in accordance with this order.
4. Application 00-08-052 is closed.
This order is effective today.
Dated , at San Francisco, California.
