Notice of
Utility Tariff Filing
The
REGULATORY COMMISSION OF ALASKA (Commission) gives notice that CHUGACH ELECTRIC
ASSOCIATION, INC. (Chugach) has filed tariff revision TA391-8, requesting
Commission approval of Amendment No. 1 to its 2013 Gas Sale and Purchase
Agreement with Hilcorp Alaska, LLC (Hilcorp) (Agreement).
The key
provisions of the proposed amendment include:
-
An extension of
the contractual term for firm gas supply deliveries by one year to March 31,
2019.
-
An expansion of
the time horizon for non-firm gas supply deliveries through March 2019.
-
The introduction
of a new category of gas available for purchase (Discretionary Gas) which is
defined as gas which Chugach may request to purchase from Hilcorp in Chugach’s
sole discretion and which Hilcorp may agree to sell to Chugach in Hilcorp’s sole
discretion. Under the terms of the
Agreement, Discretionary Gas sales will be confirmed by form (attached as
Exhibit D) and is not firm and is interruptible by either party. Additionally,
Discretionary Gas Sales will not be included in Annual Contract Quantity,
Average Daily Contract Quantity, Daily Contract Quantity, or Monthly Contract
Quantity, but will be included in the monthly calculation of the amount due
from Chugach to Hilcorp and will be shown as a separate line item on the
monthly invoices.
-
The introduction
of a Royalty in Kind provision in Year 5 (April 1, 2018 through March 31, 2019)
of the Agreement. This provision
recognizes that the owner of oil and gas rights leased to Hilcorp may request to
receive royalties “in kind” (i.e., in oil or gas itself) rather than in value
(i.e., in money). Under the proposed
provision, should a Lessor or Overriding Royalty Owner elect to take its
royalty in kind, Hilcorp will have the right to reduce its obligations under
the agreement after notifying Chugach within a specified period of time of its
inability to deliver contracted quantities due to the royalty gas diversion,
provided that the reduction is pro rata with reductions in obligations under
other firm commitments of gas to third parties.
In addition
to the proposed Amendment No. 1, Chugach has submitted revisions to Tariff
Sheet Nos. 94, 95, and 95.5, updating references to the Agreement to reflect
the extension.
Chugach
also petitioned for confidential treatment of aspects of the Agreement until
Chugach takes physical delivery of the gas.
This notice
may not contain all requested revisions and the Commission may approve a rate
or classification, which varies from that proposed. You may obtain more information about this
filing from Chugach at 5601 Electron Drive, P. O. Box 196300, Anchorage, AK 99519-6300; phone: (907) 762-4709. The
complete filing is also available for inspection at the Commission’s office at
701 West 8th Avenue, Suite 300, Anchorage, AK 99501; phone: (907)
276-6222, or may be viewed at the Commission’s website at http://rca.alaska.gov by typing Docket “TA391-8” in the Find the Matter search box.
To comment
on this filing, please file your comments by 5:00 p.m., September 5, 2014, at
the Commission’s address given above or via our website at:
https://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx
Please
reference TA391-8 in the subject line of your comments and include a statement
that you have filed a copy of the comments with Chugach at its address given
above or at info@chugachelectric.com.
Individuals or groups of people with
disabilities, who require special accommodations, auxiliary aids or service, or
alternative communication formats, please contact Joyce McGowan at (907)
276-6222, toll-free at 1-800-390-2782, TTY (907) 276-4533 or send a request via
electronic mail to rca.mail@alaska.gov by August 29,
2014.
DATED at
Anchorage, Alaska, this 6th day of August, 2014.
REGULATORY COMMISSION OF ALASKA
Rich Gazaway
Advisory Section
Manager