[Code of Federal Regulations]
[Title 18, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 18CFR157.14]

[Page 515-520]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
  CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
 
 PART 157_APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY 
 
   Subpart A_Applications for Certificates of Public Convenience and
 
Sec. 157.14  Exhibits.

    (a) To be attached to each application. All exhibits specified must 
accompany each application when tendered for filing. Together with each 
exhibit applicant must provide a full and complete explanation of the 
data submitted, the manner in which it was obtained, and the reasons for 
the conclusions derived from the exhibits. If the Commission determines 
that a formal hearing upon the application is required or that testimony 
and hearing exhibits should be filed, the Secretary will promptly notify 
the applicant that submittal of all exhibits and testimony of all 
witnesses to be sponsored by the applicant in support of his case-in-
chief is required. Submittal of these exhibits and testimony must be 
within 20 days from the date of the Secretary's notice, or any other 
time as the Secretary will specifiy. Exhibits, except exhibits F, F-1, 
G, G-I, G-II, and H(iv), must be submitted to the Commission on 
electronic media as prescribed in Sec. 385.2011 of this chapter. 
Interveners and persons becoming interveners after the date of the 
Secretary's notice must be advised by the applicant of the afore-
specified exhibits and testimony, and must be furnished with copies upon 
request. If this section requires an applicant to reveal Critical Energy 
Infrastructure Information (CEII), as defined by Sec. 388.113(c) of 
this chapter, to any person, the applicant shall follow the procedures 
set out in Sec. 157.10(d).
    (1) Exhibit A--Articles of incorporation and bylaws. If applicant is 
not an individual, a conformed copy of its articles of incorporation and 
bylaws, or other similar documents.
    (2) Exhibit B--State authorization. For each State where applicant 
is authorized to do business, a statement showing the date of 
authorization, the scope of the business applicant is authorized to 
carry on and all limitations, if any, including expiration dates and 
renewal obligations. A conformed copy of applicant's authorization to do 
business in each State affected shall be supplied upon request.
    (3) Exhibit C--Company officials. A list of the names and business 
addresses of applicant's officers and directors, or similar officials if 
applicant is not a corporation.

[[Page 516]]

    (4) Exhibit D--Subsidiaries and affiliation. If applicant or any of 
its officers or directors, directly or indirectly, owns, controls, or 
holds with power to vote, 10 percent or more of the outstanding voting 
securities of any other person or organized group of persons engaged in 
production, transportation, distribution, or sale of natural gas, or of 
any person or organized group of persons engaged in the construction or 
financing of such enterprises or operations, a detailed explanation of 
each such relationship, including the percentage of voting strength 
represented by such ownership of securities. If any person or organized 
group of persons, directly or indirectly, owns, controls, or holds with 
power to vote, 10 percent or more of the outstanding voting securities 
of applicant--a detailed explanation of each such relationship.
    (5) Exhibit E--Other pending applications and filings. A list of 
other applications and filings under sections 1, 3, 4 and 7 of the 
Natural Gas Act filed by the applicant which are pending before the 
Commission at the time of the filing of an application and which 
directly and significantly affect the application filed, including an 
explanation of any material effect the grant or denial of those other 
applications and filings will have on the application and of any 
material effect the grant or denial of the application will have on 
those other applications and filings.
    (6) Exhibit F--Location of facilities. Unless shown on Exhibit G or 
elsewhere, a geographical map of suitable scale and detail showing, and 
appropriately differentiating between all of the facilities proposed to 
be constructed, acquired or abandoned and existing facilities of 
applicant, the operation or capacity of which will be directly affected 
by the proposed facilities or the facilities proposed to be abandoned. 
This map, or an additional map, shall clearly show the relationship of 
the new facilities to the applicant's overall system and shall include:
    (i) Location, length, and size of pipelines.
    (ii) Location and size (rated horsepower) of compressor stations.
    (iii) Location and designation of each point of connection of 
existing and proposed facilities with (a) main-line industrial 
customers, gas pipeline or distribution systems, showing towns and 
communities served and to be served at wholesale and retail, and (b) 
gas-producing and storage fields, or other sources of gas supply.
    (6-a) Exhibit F-I--Environmental report. An environmental report as 
specified in Sec. Sec. 380.3 and 380.12 of this chapter. Applicant must 
submit all appropriate revisions to Exhibit F-I whenever route or site 
changes are filed. These revisions should identify the locations by mile 
post and describe all other specific differences resulting from the 
route or site changes, and should not simply provide revised totals for 
the resources affected.
    (7) Exhibit G--Flow diagrams showing daily design capacity and 
reflecting operation with and without proposed facilities added. A flow 
diagram showing daily design capacity and reflecting operating 
conditions with only existing facilities in operation. A second flow 
diagram showing daily design capacity and reflecting operating 
conditions with both proposed and existing facilities in operation. Both 
flow diagrams shall include the following for the portion of the system 
affected:
    (i) Diameter, wall thickness, and length of pipe installed and 
proposed to be installed and the diameter and wall thickness of the 
installed pipe to which connection is proposed.
    (ii) For each proposed new compressor station and existing station, 
the size, type and number of compressor units, horsepower required, 
horsepower installed and proposed to be installed, volume of gas to be 
used as fuel, suction and discharge pressures, and compression ratio.
    (iii) Pressures and volumes of gas at the main line inlet and outlet 
connections at each compressor station.
    (iv) Pressures and volumes of gas at each intake and take-off point 
and at the beginning and terminus of the existing and proposed 
facilities and at the intake or take-off point of the existing 
facilities to which the proposed facilities are to be connected.
    (8) Exhibit G-I--Flow diagrams reflecting maximum capabilities. If 
Exhibit G does not reflect the maximum deliveries which applicant's 
existing and proposed facilities would be capable of

[[Page 517]]

achieving under most favorable operating conditions with utilization of 
all facilities, include an additional diagram or diagrams to depict such 
maximum capabilities. If the horsepower, pipelines, or other facilities 
on the segment of applicant's system under consideration are not being 
fully utilized due, e.g., to capacity limitation of connecting 
facilities or because of the need for standby or spare equipment, the 
reason for such nonutilization shall be stated.
    (9) Exhibit G-II--Flow diagram data. Exhibits G and G-I shall be 
accompanied by a statement of engineering design data in explanation and 
support of the diagrams and the proposed project, setting forth:
    (i) Assumptions, bases, formulae, and methods used in the 
development and preparation of such diagrams and accompanying data.
    (ii) A description of the pipe and fittings to be installed, 
specifying the diameter, wall thickness, yield point, ultimate tensile 
strength, method of fabrication, and methods of testing proposed.
    (iii) When lines are looped, the length and size of the pipe in each 
loop.
    (iv) Type, capacity, and location of each natural gas storage field 
or facility, and of each dehydration, desulphurization, natural gas 
liquefaction, hydrocarbon extraction, or other similar plant or facility 
directly attached to the applicant's system, indicating which of such 
plants are owned or operated by applicant, and which by others, giving 
their names and addresses.
    (v) If the daily design capacity shown in Exhibit G is predicated 
upon an ability to meet each customer's maximum contract quantity on the 
same day, explain the reason for such coincidental peak-day design. If 
the design day capacity shown in Exhibit G is predicated upon an assumed 
diversity factor, state that factor and explain its derivation.
    (vi) The maximum allowable operating pressure of each proposed 
facility for which a certificate is requested, as permitted by the 
Department of Transportation's safety standards. The applicant shall 
certify that it will design, install, inspect, test, construct, operate, 
replace, and maintain the facilities for which a certificate is 
requested in accordance with Federal safety standards and plans for 
maintenance and inspection or shall certify that it has been granted a 
waiver of the requirements of the safety standards by the Department of 
Transportation in accordance with the provisions of section 3(e) of the 
Natural Gas Pipeline Safety Act of 1968. Pertinent details concerning 
the waiver shall be set forth.
    (10) Exhibit H--Total gas supply data. A statement by applicant 
describing:
    (i) Those production areas accessible to the proposed construction 
that contain sufficient existing or potential gas supplies for the 
proposed project; and
    (ii) How those production areas are connected to the proposed 
construction.
    (11) Exhibit I--Market data. A system-wide estimate of the volumes 
of gas to be delivered during each of the first 3 full years of 
operation of the proposed service, sale, or facilities and during the 
years when the proposed facilities are under construction, and actual 
data of like import for each of the 3 years next preceding the filing of 
the application, together with:
    (i) Names and locations of customer companies and municipalities, 
showing the number of residential, commercial, firm industrial, 
interruptible industrial, residential space-heating, commercial space-
heating, and other types of customers for each distribution system to be 
served at retail or wholesale; and the names and locations of each firm 
and interruptible direct industrial customer whose estimated consumption 
totals 10,000 Mcf or more in any calendar month or 100,000 Mcf or more 
per year together with an explanation of the end use to which each of 
these industrial customers will put the gas.
    (ii) Applicant's total annual and peak day gas requirements by 
classification of service in paragraph (a)(11)(i) of this section, 
divided as follows: Gas requirements (a) for each distribution area 
where gas is sold by applicant at retail; (b) for each wholesale 
customer; (c) for all main line direct industrial customers; and (d) 
company use and unaccounted-for gas, for both the applicant and each 
wholesale customer.

[[Page 518]]

    (iii) Total past and expected curtailments of service by the 
applicant and each wholesale customer proposing to receive new or 
additional supplies of gas from the project, all to be listed by the 
classifications of service in paragraph (a)(11)(i) of this section.
    (iv) Explanation and derivation of basic factors used in estimating 
future requirements, including, for example: Peak-day and annual degree-
day deficiencies, annual load factors of applicant's system and of its 
deliveries to its proposed customers; individual consumer peak-day and 
annual consumption factors for each class of consumers, with supporting 
historical data; forecasted saturation of space-heating as related to 
past experience; and full detail as to all other sources of gas supply 
available to applicant and to each of its customers, including 
manufacturing facilities and liquid petroleum gas.
    (v) Conformed copy of each contract, letter of intent or other 
agreement for sale or transportation of natural gas proposed by the 
application. Indicate the rate to be charged. If no agreements have been 
made, indicate the basis for assuming that contracts will be consummated 
and that service will be rendered under the terms contemplated in the 
application.
    (vi) A full description of all facilities, other than those covered 
by the application, necessary to provide service in the communities to 
be served, the estimated cost of such facilities, by whom they are to be 
constructed, and evidence of economic feasibility.
    (vii) A copy of each market survey made within the past three years 
for such markets as are to receive new or increased service from the 
project applied for.
    (viii) A statement showing the franchise rights of applicant or 
other person to distribute gas in each community in which service is 
proposed.
    (ix) When an application requires a statement of total peak-day or 
annual market requirements of affiliates, whose operations are 
integrated with those of applicant, to demonstrate applicant's ability 
to provide the service proposed or to establish a gas supply, estimates 
and data required by this subparagraph shall also be stated in like 
detail for such affiliates.
    (x) When the proposed project is for service which would not 
decrease the life index of the total system gas supply by more than one 
year, the data required in paragraphs (a)(11) (i) to (ix), inclusive, of 
this section need be submitted only as to the particular market to 
receive new or additional service.
    (12) [Reserved]
    (13) Exhibit K--Cost of facilities. A detailed estimate of total 
capital cost of the proposed facilities for which application is made, 
showing cost of construction by operating units such as compressor 
stations, main pipelines, laterals, measuring and regulating stations, 
and separately stating the cost of right-of-way, damages, surveys, 
materials, labor, engineering and inspection, administrative overhead, 
fees for legal and other services, allowance for funds used during 
construction, and contingencies. Include a brief statement indicating 
the source of information used as the basis for the above estimate. If 
not otherwise set forth, submit data on preliminary bids, if any, for 
the proposed facilities and recent experienced cost data for facilities 
of similar character.
    (14) Exhibit L--Financing. Plans for financing the proposed 
facilities for which the application is filed, together with:
    (i) A description of the class (e.g., commercial paper, long-term 
debt, preferred stock) and cost rates for securities expected to be 
issued with construction period and post- operational sources of 
financing separately identified.
    (ii) Statement of anticipated cash flow, including provision during 
the period of construction and the first 3 full years of operation of 
proposed facilities for interest requirements, dividends, and capital 
requirements.
    (iii) A balance sheet and income statement (12 months) of most 
recent data available.
    (iv) Comparative pro forma balance sheets and income statements for 
the period of construction and each of the first 3 full years of 
operation, giving effect to the proposed construction and proposed 
financing of the project.

[[Page 519]]

    (v) Any additional data and information upon which applicant 
proposes to rely in showing the adequacy and availability of resources 
for financing its proposed project.
    (vi) In instances for which principal operations of the company have 
not commenced or where proposed rates for services are developed on an 
incremental basis, a brief statement explaining how the applicant will 
determine the actual allowance for funds used during construction 
(AFUDC) rate, or if a rate is not to be used, how the applicant will 
determine the actual amount of AFUDC to be capitalized as a component of 
construction cost, and why the method is appropriate under the 
circumstances.
    (15) Exhibit M--Construction, operation, and management. A concise 
statement setting forth arrangements for supervision, management, 
engineering, accounting, legal, or other similar service to be rendered 
in connection with the construction or operation of the project, if not 
to be performed by employees of applicant, including reference to any 
existing or contemplated agreements therefor, together with:
    (i) A statement showing affiliation between applicant and any 
parties to such agreements or arrangements. See Exhibit D, paragraph 
(a)(4) of this section.
    (ii) Conformed copies of all construction, engineering, management, 
and other similar service agreements or contracts in any way operative 
with respect to construction, operation, or financing of facilities 
which are the subject of the application or will be applicable under 
system operations.
    (16) Exhibit N--Revenues--Expenses--Income. When the estimated 
revenues and expenses related to a proposed facility will significantly 
affect the operating revenues or operating expenses of an applicant, 
there shall be submitted a system-wide statement for the last year 
preceding the proposed construction or service and pro forma system-wide 
and incremental statements for each of the first three full years of 
operation of the proposed facilities, showing:
    (i) Gas system annual revenues and volumes of natural gas related 
thereto, subdivided by classes of service, and further subdivided by 
sales to direct industrial customers, sales to other gas utilities, and 
other sales, indicating billing quantities used for computing charges, 
e. g., actual demands, billing demands, volumes, heat-content adjustment 
or other determinants. In addition, if enlargement or extension of 
facilities is involved, the revenues attributable solely to the proposed 
facilities shall be stated separately, and the basis and data used in 
such computation shall be clearly shown.
    (ii) Gas system annual operating expenses classified in accordance 
with the Commission's Uniform System of Accounts for Natural Gas 
Companies; the annual depreciation, depletion, taxes, utility income, 
and resulting rate of return on net investment in gas plant including 
working capital. In addition if enlargement or extension of facilities 
is involved, the cost of service attributable solely to the proposed 
facilities shall be stated separately with supporting data.
    (iii) When the data required in paragraphs (a)(16)(i) and (ii) of 
this section is not submitted, applicant shall provide in lieu thereof a 
statement in sufficient detail to show clearly the effect on the 
operating revenues and operating expenses of the estimated revenues and 
expenses related to the proposed facility.
    (17) Exhibit O--Depreciation and depletion. Depreciation and 
depletion rates to be established, the method of determination and the 
justification therefor.
    (18) Exhibit P--Tariff. (i) A statement of the rates to be charged 
for the proposed sales or service, including:
    (a) Identification of the applicable presently effective rate 
schedules, when no additional tariff filings will be required, or
    (b) When changes are required in applicant's presently effective 
tariff, or if applicant has no tariff, pro forma copies of appropriate 
changes in or additions to the effective tariff or a pro forma copy of 
the new gas tariff proposed, or
    (c) When a new rate is proposed, a statement explaining the basis 
used in arriving at the proposed rate. Such statement shall clearly show 
whether such rate results from negotiation,

[[Page 520]]

cost-of-service determination, competitive factors or others, and shall 
give the nature of any studies which have been made in connection 
therewith.
    (ii) When new rates or changes in present rates are proposed or when 
the proposed facilities will result in a material change in applicant's 
average cost of service, such statement shall be accompanied by 
supporting data showing:
    (a) System cost of service for the first calendar year of operation 
after the proposed facilities are placed in service.
    (b) An allocation of such costs to each particular service 
classification, with the basis for each allocation clearly stated.
    (c) The proposed rate base and rate of return.
    (d) Gas operating expenses, segregated functionally by accounts.
    (e) Depletion and depreciation.
    (f) Taxes with the basis upon which computed.
    (b) Additional exhibits. Applicant shall submit additional exhibits 
necessary to support or clarify its application. Such exhibits shall be 
identified and designated as provided by Sec. 157.6(b)(6).
    (c) Additional information. Upon request by the Secretary, prior to 
or during hearing upon the application, applicant shall submit such 
additional data, information, exhibits, or other detail as may be 
specified. An original and 7 conformed copies of such additional 
information shall be furnished to the Commission. The Commission 
reserves the right to request additional copies.
    (d) Availability of Commission staff for advice prior to formal 
filing. Prior to filing an application, any person may informally confer 
with the staff of the Commission to obtain advice on any problem of 
statement or presentation of an application or any part thereof.

(Secs. 3(e), 7, 8, 82 Stat. 721, 725 (49 U.S.C. 1672, 1676, 1677; 
Natural Gas Act (15 U.S.C. 717-717w); Natural Gas Policy Act (15 U.S.C. 
3301-3432); Department of Energy Organization Act (42 U.S.C. 7101-7352); 
E.O. 12009, 3 CFR 142)

[17 FR 7387, Aug. 14, 1952]

    Editorial Note: For Federal Register citations affecting Sec. 
157.14, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.