Oil Pipeline Contracts News Today : Breaking News, Live Updates & Top Stories | Vimarsana

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On December 17, 2020, FERC issued an order concluding its review of the index level used to determine annual changes to oil pipeline rate ceilings, establishing an index level of Producer Price Index for Finished Goods plus 0.78% (PPI-FG+0.78%), and also issued a Withdrawal of Proposed Policy Statement on Oil Pipeline Affiliate Contracts, the latter of which drew a dissenting opinion from Commissioner Richard Glick.
Rather than making cost-of-service filings, oil pipelines adjust their rates to applicable ceiling levels under an indexing methodology that FERC reviews every five years. On June 18, 2020, FERC issued a Notice of Inquiry initiating its review to establish the oil pipeline index for the July 1, 2021 to June 30, 2026 time period. FERC proposed an index level of PPI-FG+0.09% and requested comments on its proposal and any alternative methodologies for calculating the index level. In its December 17, 2020 ....

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