Part X Requirements Section 46
Tolls and Tariffs
46. The application shall include a concise description of the applicant's pipeline system and operations, including a system map.
RESPONSE: The present TQM Pipeline system begins at Saint-Lazare near Montréal and extends to Saint-Nicolas, located on the South Shore of Québec City, and from Terrebonne (formerly Lachenaie), located North of Montréal, to East Hereford on the New Hampshire border, with laterals to Boisbriand, Saint-Jérôme, Joliette, Louiseville, Trois-Rivières and Québec City. The main line from Saint-Lazare to the Boisbriand junction (39 km) is constructed with a 762 mm (30 inches) diameter pipe while the main line from the Boisbriand junction to the Québec City junction (257.2 km) is built with a 610 mm (24 inches) diameter pipe. The extension of TQM Pipeline’s system to the Québec City South Shore measuring 13.5 km in length with a 406.4 mm diameter pipe (16 inches), with a crossing of the St. Lawrence River by tunnel, was completed in May 1996. The Terrebonne - East Hereford extension measuring 217 km in length with a 610 mm diameter pipe (24 inches) was put in service in December 1998, for the section from Terrebonne to Waterloo, and in March 1999, for the section from Waterloo to East Hereford. One 7.0 MW electric motor driven compressor unit was installed at Terrebonne and one 3.2 MW electric motor driven compressor was installed at East Hereford. At December 31, 2001 there are 19 meter stations and 9 sales taps in service. In 2002, a new receipt point will be built at Sainte-Geneviève-de-Berthier for the reception of refined biogas. The TQM Pipeline System is illustrated on the map attached hereto. Gazoduc Lac Saint-Jean Jonquière TQM Roberval Alma Chicoutimi Chambord Desbiens La Baie
1 888 810-8800
Légende / legend
Réseau de Gazoduc TQM TQM Pipeline system Québec n Poste de mesurage de Gazoduc TQM La Tuque n TQM Pipeline meter station Saint-Augustin-de-Desmaures Lévis-Lauzon Saint-Romuald s Point de livraison de Gazoduc TQM Charny TQM Pipeline delivery point
s s Pénitencier de Donnacona s
s n s Point de réception de Gazoduc TQM TQM Pipeline receipt point Donnacona s Saint-Nicolas Station de compression de Gazoduc TQM Saint-Lambert TQM Pipeline Compressor Station Portneuf n Saint-Flavien Scott Réseau de TransCanada PipeLines Deschambault n Sainte-Marie TransCanada PipeLines system Saint-Joseph- er iv Vallée-Jonction de-Beauce R Réseau de Gaz Métropolitain ce Beauceville Gaz Métropolitain system n re w Ville/City Sainte-Anne- La t. Saint-Georges de-la-Pérade S Saint-Georges s t / Grand-Mère en Saint-Narcisse Province Saint-Laur n e de / of Saint-Maurice uv Québec le F Trois-Rivières-Ouest n Bécancour
Pointe-du-Lac s n s Yamachiche Mont-Tremblant s Saint-Jovite Louiseville
Sainte-Geneviève s s n Saint-Agathe-des-Monts -de-Berthier Lac Courval n Saint-Pierre Lanoraie s Mont-Rolland n Berthierville Drummondville Terrebonne2 Joliette s Saint-Jérôme s n Terrebonne Saint-Antoine- n n Mascouche de-Lavaltrie Saint-Janvier s Oka s Mirabel n Terrebonne n L'Assomption Saint-Hyacinthe Acton-Vale Repentigny Asbestos MAINE n Laval Windsor Boisbriand Waterloo s Granby Marbleton
s Montréal Waterloo East-Angus Saint-Lazare n Sherbrooke Farnham Brossard Coaticook Saint-Mathieu Bromont Magog n Cowansville Sabrevois n East Hereford NEW NEW YORK VERMONT HAMPSHIRE Juillet / July 2002 Part X Requirements Section 47 Page 1 of 2
Tolls and Tariffs
47. The application shall contain a summary or copy of all agreements, not previously filed with the Board and of any substantive changes in such agreements previously filed with the Board that have been entered into by the applicant for the test year pertaining to transportation by the applicant in and outside Canada, including any throughput, deficiency, storage, exchange, delivery pressure, processing or shipper-owner agreements, if applicable.
RESPONSE:
Customer and Service Description
TransCanada PipeLines To transport gas from Saint-Lazare to - Service Agreement dated various points on the system, pursuant to January 25, 1982. Toll Schedules T-1 and OT-1.
Gaz Métropolitain To store and transport gas between Saint- - Transportation and Maurice and points downstream of Saint- Storage Service Agreement Maurice on the system, pursuant to Toll dated March 17, 1987. Schedule TS-SCGM.
Gaz Métropolitain To transport storage gas from Pointe-du- - Storage Gas Transportation Lac to Trois-Rivières and, for any excess Service Agreement dated volumes, to points downstream of Trois- February 13, 1990. Rivières, and to transport gas received at Saint-Nicolas to points upstream of Saint- Nicolas pursuant to Toll Schedule SGT-SCGM.
Part X Requirements Section 47 Page 2 of 2
Customer and Service Description
EBI Bio-Environnement Inc. To transport refined biogas from Sainte- - Biogas Transportation Geneviève-de-Berthier to delivery points of Service Agreement dated Gaz Métropolitain served by TQM Pipeline June 28, 2002. pursuant to Toll Schedule BGT.
The above agreements and all amendments have been filed with the Board.
Part X Requirements Section 48 Page 1 of 4
Tolls and Tariffs
48. The application shall include the requested tariff revisions together with comparative schedules showing proposed changes to existing tolls and tariffs, and copies of existing tariffs where deemed appropriate.
RESPONSE: The following tariff revisions are proposed:
a) Toll Schedule T-1 shown on sheet 203 is decreased from $7,716,167 per month to $7,384,833 per month effective January 1, 2002. Such revision appears on page 2 hereof.
b) Toll Schedule SGT-SCGM tolls shown on sheet 5 of 13 are modified from $1.68/103m3 to $1.52/103m3 for deliveries to Trois-Rivières, from $8.14/103m3 to $7.28/103m3 for deliveries to points located downstream of Trois-Rivières and from $2.72/103m3 to $2.47/103m3 for deliveries to points located upstream of Saint-Nicolas. Such revisions appear on page 3 hereof.
c) The Storage Fee in effect under Toll Schedule TS-SCGM is unchanged at $3,875 per month pursuant to an amendment dated October 30, 1995 to the Transportation and Storage Service with Gaz Métropolitain.
d) The proposed toll under Toll Schedule BGT is $0.49/103m3 for deliveries of refined biogas to points serving Gaz Métropolitain’s markets. This toll appears on page 4 hereof.
Part X Requirements Section 48 Page 2 of 4
Sheet 203
TOLL SCHEDULE T-1
FIRM SERVICE
6. TOLLS
Shippers’s Monthly Charge for transportation service hereunder for each billing Month beginning with Shipper’s First Billing Month shall be Shipper’s Allocable Share of $7,384,833. The said monthly charge is payable notwithstanding any failure by Shipper during such month, for any reason whatsoever including force majeure, to deliver or to cause to be delivered any portion of the gas to be delivered to Company at the Receipt points.
EFFECTIVE DATE : 1 JANUARY 2002
Part X Requirements Section 48 Page 3 of 4
Page 5 of 13
TRANS QUÉBEC & MARITIMES PIPELINE INC.
SGT-SCGM TOLL SCHEDULE
STORAGE GAS TRANSPORTATION
2.5 The daily volume of gas shall be taken at rates of flow as nearly constant as possible. Departures from scheduled daily deliveries due to the inability of TQM Pipeline or Gaz Métropolitain to maintain precise control shall be kept to the minimum permitted by operating conditions.
2.6 Determination of daily deliveries to delivery points is provided in Section XIII of the General Terms and Conditions.
3. TOLL
3.1 The applicable toll for service hereunder is as follows :
Transportation Charge Commodity Toll $/103m3 ______Delivery Points Downstream Delivery Points Trois-Rivières of Trois-Rivières Upstream of St-Nicolas 1.52 7.28 2.47
EFFECTIVE DATE : 1 JANUARY 2002
Part X Requirements Section 48 Page 4 of 4
Page 5 of 10
TRANS QUÉBEC & MARITIMES PIPELINE INC.
BGT TOLL SCHEDULE
BIOGAS TRANSPORTATION
3. TOLL
3.1 The applicable toll for service hereunder is as follows :
Transportation Charge Commodity Toll $/103m3 ______0.49
3.2 The monthly bill for deliveries for service hereunder shall be equal to the transportation charge for the billing months, calculated by multiplying the commodity toll set forth in Article 3.1 by the gas volume effectively received from EBI and transported by TQM Pipeline as provided hereunder.
The commodity toll is calculated on the basis of the total revenue requirement of TQM Pipeline, as authorized by the National Energy Board or pursuant to the methodology applicable, by dividing this revenue requirement by the volume-distance of all gas to be delivered
EFFECTIVE DATE : 1 JANUARY 2002 Part X Requirements Section 49 Page 1 of 3
Tolls and Tariffs
49. The application shall contain details of the applicant's proposed toll design with explanations of any changes in the toll design from that previously approved by the Board including
(a) a brief description of the classes or types of service offered;
(b) any toll zones or areas, illustrated by map;
(c) an allocation of the applicant's test year cost of service or portions thereof to zones or areas, customers and classes or types of service, parent or subsidiary companies, where applicable, and the details and bases for such allocations;
(d) details of any cost allocation units employed in deriving the proposed tolls for the test year;
(e) an analysis of the applicant's projected cost of service for the test year including an allocation of each cost component to major pipeline functions and a classification of the functionalized cost components between fixed and variable costs and the basis for such cost classification; and
(f) for oil pipelines, a description of the derivation of proposed tolls for the test year, including supporting information and calculations, to illustrate the determination of toll differentials for each product type or for any charge for any special service provided by the applicant.
RESPONSES: Please refer to Sections 4 and 48.
(a) The applicant proposes to offer Firm T-1 Service, Overrun OT-1 Service, TS Service (TS-SCGM), SGT Service (SGT-SCGM) and BGT Service.
A brief description of these services follows:
Part X Requirements Section 49 Page 2 of 3
FIRM SERVICE:
Applicant undertakes to transport for a shipper subject to no curtailment or interruption (except as provided in the general terms and conditions of the tariff) the daily volumes of gas received from shipper. However, TQM Pipeline is not obligated to transport more gas than the maximum daily volumes specified under the contract.
OVERRUN SERVICE:
Subject to available capacity, Applicant undertakes to transport on a best effort basis for those shippers having entered into firm service contracts, quantities of gas in excess of the maximum daily quantities mentioned in the contract.
TS SERVICE:
Applicant undertakes to store and transport gas for Gaz Métropolitain between Saint-Maurice and points downstream of Saint-Maurice on its system, pursuant to Toll Schedule TS-SCGM.
Part X Requirements Section 49 Page 3 of 3
SGT SERVICE:
Applicant undertakes to transport storage gas for Gaz Métropolitain from Pointe-du-Lac to Trois-Rivières and, for any excess volumes, to points downstream of Trois-Rivières on its system, and to transport gas received at Saint-Nicolas to points upstream of Saint-Nicolas pursuant to Toll Schedule SGT-SCGM.
BGT SERVICE
Applicant undertakes to transport EBI Bio-Environnement’s refined biogas from Sainte-Geneviève-de-Berthier to points serving Gaz Métropolitain’s markets pursuant to Toll Schedule BGT.
(b) Applicant has no toll zones.
(c) TQM Pipeline transports gas on behalf of TransCanada PipeLines only. The total monthly toll of the Applicant would therefore be charged to TransCanada, as adjusted for any revenues received for the TS-SCGM, the SGT-SCGM and the BGT Services.
TQM Pipeline’s toll which is charged to TransCanada includes the cost of service to provide the minimum delivery pressure requested by TransCanada at East Hereford. The computation of this cost of service is set out on schedule 49.1 hereafter.
(d) This item is not applicable.
(e) This item is not applicable.
(f) This item is not applicable. Part X Requirements Section 49 Schedule 49.1
CALCULATION OF THE COST OF SERVICE TO PROVIDE A PRESSURE ABOVE 4 000 KPA AT EAST HEREFORD
Costs of the facilities used to provide a delivery pressure above 4 000 kPa at East Hereford are as follows : 31/12/2002 ______(000$)
Incremental pipe wall thickness to increase MAOP from 7 070 kPa to 9 930 kPa : 17,438
Share of the Lachenaie compressor unit cost : 4,998
East Hereford compression unit cost : 13,738 ______
Total 36,174
The 2002 cost of service for a delivery pressure surcharge at East Hereford is calculated by TQM Pipeline as follows : 2002 ______(000$)
Operating Expenses : 233 Depreciation : 982 Municipal & Other Taxes : 148 Income Taxes : (267) Return : 2,470 Fuel Cost : 1,616 ______
Total 5,182 Part X Requirements Section 50 Page 1 of 4
Tolls and Tariffs
50. For gas pipelines, the application shall contain details of throughput and projected throughput, for each customer and class or type of service including export sales and miscellaneous services, for the base, current, and test years, together with full explanations of adjustments, and including
(a) distances and volumes for individual receipt and delivery points;
(b) tendered or demand volumes for individual receipt points or delivery areas; and
(c) average monthly heating values of volumes as measured or calculated at receipt and delivery points, and the basis of the calorific measurements.
RESPONSE: (a) See page 2 of 4 which follows. (b) See page 3 of 4 which follows. (c) See page 4 of 4 which follow. The average heating value for the period January 1, 2002 to December 31, 2002, is forecasted to be 37.37 MJ/m3 which reflects the actual average heating value for the period July 1, 2001 to June 30, 2002. All gas entering the system at Saint-Lazare is delivered from TransCanada's gas stream. The basis of calorific measurements made by TransCanada is set in TransCanada's Tariff, as approved by the Board. Part X Requirements Section 50 Page 2 of 4
Volumes 106m3 Distance Jan 01/ Jan 02/5 Location km Dec 01 Dec 02 ------
Receipts
TransCanada PipeLines Limited Saint-Lazare - 4,530 4,728
Gaz Métropolitain, inc. Pointe-du-Lac 180.1 12 33 Saint-Nicolas1 309.7 26 30 Saint-Maurice2 200.6 0 -
EBI Bio-Environnement Inc. Sainte-Geneviève-de-Berthier3 126.0 0 3
Deliveries4 Oka 16.8 1 1 Mirabel 39.0 4 5 Boisbriand 45.3 1,625 1,622 Saint-Janvier 53.3 22 25 Terrebonne 2 55.3 4 4 Saint-Jérôme 56.4 104 103 Terrebonne 65.8 6 10 Mascouche 74.3 8 5 L'Assomption 88.4 19 21 Saint-Antoine-de-Lavaltrie 110.8 - 1 Lanoraie 116.8 2 3 Joliette 123.0 55 60 Berthierville 130.7 7 7 Louiseville 159.6 12 12 Yamachiche 169.3 3 3 Pointe-du-Lac 180.1 15 36 Trois-Rivières Ouest 194.3 270 296 Saint-Maurice 200.6 437 563 Sainte-Anne-de-la-Pérade 231.9 - - Deschambault 256.0 17 20 Portneuf 262.3 42 47 Donnacona 276.2 33 31 Pénitencier de Donnacona 278.6 - 1 Saint-Augustin-de-Desmaures 298.2 255 277 Saint-Nicolas 309.6 167 180 Waterloo 183.9 431 236 Coaticook 260.2 4 4 East Hereford 296.0 1,025 1,221
(1) Receipts at Saint-Nicolas represent gas received and transported to delivery points upstream of Saint- Nicolas, excluding Saint-Maurice and delivery points upstream of Saint-Maurice. (2) Receipts at Saint-Maurice represent gas received for storage. (3) Receipts at Sainte-Geneviève-de-Berthier represent refined biogas received and transported to GMi’s markets served by TQM Pipeline. (4) Total deliveries equal receipts at Saint-Lazare, Pointe-du-Lac, Saint-Nicolas and Sainte-Geneviève-de- Berthier, except for rounding. (5) Includes actuals from January to June.
Part X Requirements Section 50 Page 3 of 4
Maximum Daily 103m3
Location Class of Service 2001/2002 2002/2003 ______
Receipts
TransCanada PipeLines
Saint-Lazare T-1 Service 19,690 19,690
Gaz Métropolitain
Pointe-du-Lac SGT-GMi n.a. n.a. Saint-Nicolas SGT-GMi n.a. n.a. Saint-Maurice TS-GMi n.a. n.a.
EBI Bio-Environnement Inc.
Sainte-Geneviève-de-Berthier BGT n.a. n.a.
Deliveries
Oka, Mirabel Boisbriand, Saint-Janvier, Saint-Jérôme, Terrebonne 2, Terrebonne,Mascouche, L’Assomption Joliette, Lavaltrie, Lanoraie Berthierville, Louiseville, Yamachiche Pointe-du-Lac, Trois-Rivières Ouest, T-1 Service 19,690 19,690 Saint-Maurice, Sainte-Anne-de- la-Pérade, Deschambault, Portneuf, Donnacona, Pénitencier de Donnacona, Saint-Augustin-de-Desmaures Saint-Nicolas, Waterloo Coaticook, East Hereford Part X Requirements Section 50 Page 4 of 4
The average monthly heating values for the period January 1, 2001 to December 31, 2002, at the receipt point of Saint-Lazare as well as at all delivery points on the system, were as follows:
2001 2002 MONTH MJ/m3 MJ/m3
January 37.78 37.35 February 37.80 37.35 March 37.64 37.39 April 37.71 37.40 May 37.70 37.35 June 37.45 37.38 July 37.44 37.44 August 37.40 37.40 September 37.40 37.40 October 37.37 37.37 November 37.38 37.38 December 37.27 37.27