Puget Sound Energy, Inc.

Original Volume No. 1

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Effective Date: 11/01/1998, Docket: CP98-250-002, Status: Effective

Original Sheet No. 2 Original Sheet No. 2 : Effective

PRELIMINARY STATEMENT

Puget Sound Energy, Inc. ("Puget Sound") is a public service

company serving natural gas and electric customers in the state of

Washington. Puget Sound is not engaged in FERC jurisdictional

transportation or sales of natural gas and is not a "natural gas

company" within the meaning of Section 2(6) of the Natural Gas

Act. Puget Sound's local natural gas distribution activities and

facilities are exempted from FERC jurisdiction by Section 1(b) of

the Natural Gas Act.

Puget Sound, as the operator of the Jackson Prairie Storage

Project, applied for and received a limited-jurisdiction,

case-specific certificate under Section 7 of the Natural Gas Act

for all authorizations related to the development and operation of

the Jackson Prairie Storage Project. Pursuant to Commission

order, Puget has been designated the Operator of the Jackson

Prairie Storage Project located in Lewis County, Washington. 80

F.E.R.C. 61,106 (1997). The Jackson Prairie Storage Project is

owned by Puget Sound, Northwest Pipeline Corporation and The

Washington Water Power Company. The ownership and operations of

the Project are governed by and services from the Project are

provided pursuant to the Jackson Prairie Gas Storage Project

Agreement as authorized by the Commission and submitted for filing

as this FERC Gas Tariff Rate Schedule S-1.

This FERC Gas Tariff is filed in compliance with part 154, subpart

E, Title 18 of the Code of Federal Regulations.