The FERC has proposed to update its policy for evaluating whether an affiliate-only committed service on an oil pipeline is just, reasonable, and not unduly discriminatory. The FERC is reviewing the manner in which it analyzes whether a contractually committed transportation service for an oil pipeline is in compliance with the Interstate Commerce Act (ICA) when the only shipper to obtain the service is the oil pipeline’s affiliate.
The proposed policy statement is intended to implement the following:
- standards for evaluating whether affiliate-only committed service non-rate terms were structured to unduly discriminate against nonaffiliates
- a safe-harbor tool that pipelines may use to demonstrate that affiliate-only committed service rates are just, reasonable, and not unduly discriminatory
Interested parties may provide feedback on the proposal on or before February 13, 2023. For more information, including instruction on how to submit comments, refer to the proposed policy statement on www.ferc.gov.
Sources:
FERC Proposes to Revise Oil Pipeline Affiliate-Only Committed Service Policy (ferc.gov)
Oil Pipeline Affiliate Committed Service (federalregister.gov)
