Agenda Date:                  May 10, 2000
  Item Number:                  
  Docket:                         UG-000598
 Company Name:             Cascade Natural Gas Corporation
 Staff:                               Yohannes Mariam, Rate Research Specialist
                                        Dennis Lloyd, Utilities Engineer
                                        Merton Lott, Gas Industry Coordinator
                          
Recommendation :
Issue an order allowing the proposed tariff to become effective on Less Than 
Statutory Notice (LSN) in Docket UG-000598, to become effective May 11, 2000, 
as filed.
Discussion: 
On April 20, 2000, Cascade Natural Gas Corporation ("CNG" or "Company" ) filed 
tariff sheets in Docket UG-000598 establishing schedule 700. This filing 
replaces a similar filing made by the Company on March 30, 2000, in Docket 
UG-000471, which was withdrawn to incorporate Staff recommended changes. 
The proposal in Docket UG-00598 establishes optional services related to 
customer-owned piping systems. These services include design, construction, 
operation and maintenance, and cathodic protection of piping systems. In 
addition, the Company offers to perform leak surveys, repair leaks, locate 
services, test odorization, and prepare reports. 
Staff has reviewed the proposal with respect to appropriate determination of 
tariff rates. CNG provided the costs to provide the services listed under 
Schedule 700. The proposed hourly tariff rates for labor and equipment cover 
the costs to provide these services. Furthermore, material charges cover costs 
plus 35% for handling.
Pipeline Safety Staff also reviewed this filing. The Company and Pipeline 
Safety Staff agree to certain terms that will aid in oversight of safety for 
master meter systems. Pursuant to RCW 80.28.210 and WAC 480-93-005 regarding 
the definition of master meters, the Company will provide notification to the 
Commission at least 30 days prior to construction of a master meter system. 
Furthermore, CNG will provide the following information to the customers : 
•          copies of CFR 49.192 and rule 10 in tariff from CNG's WN U-3 
regarding the customer's responsibility           of owning and operating a gas 
distribution system downstream of the meter set;
•          the total cost of installing individual meters;
•          the total cost of maintaining the gas distribution system as a 
master meter operator; and 
•          notification that if individual meters are installed the customer 
will not be responsible for the gas                distribution system.
Rule 10 in CNG's tariff WN U-3 indicates that customers electing these optional 
services will remain liable for the safety of their customer owned piping 
systems. Staff would agree that the owners of piping system will remain liable 
for the safety of their customer-owned piping system, however, this doesn't 
imply that CNG is not responsible for the quality and prudence of their 
services.
Conclusion:
The proposed new tariff Schedule 700 covers the cost of providing these 
services and contributes to the fixed overhead costs of the Company. 
Furthermore, the Company and the Commission's Pipeline Safety Section have come 
to agreement on various reporting requirements, listed above, concerning 
pipeline safety for master meter systems. Therefore, the Staff recommends that 
the Commission allow the tariff to become effective. Furthermore, because this 
tariff filing constitutes a refiling of rates originally proposed to become 
effective May 1, 2000, the Commission should issue an order allowing rates to 
become effective on Less Than Statutory Notice (LSN) permitting the tariff 
filings in Docket UG-000598 to become effective May 11, 2000, as filed.