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FERC Establishes New Oil Index Level and Withdraws Proposed Affiliate Contract Guidance for Oil Pipelines | Troutman Pepper


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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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FERC Meeting Agenda Summary for December 2020 | White & Case LLP


E-1 – Omitted
E-2 – Cybersecurity Incentives (Docket No. RM21-3-000). Agenda item E-2 may be a new docket relating to a Notice of Proposed Rulemaking (NOPR) on Cybersecurity Incentives. The NOPR proceeding may expand and formalize the concepts outlined in a Commission staff white paper issued on June 18, 2020, which explored certain transmission incentive policy proposals designed to encourage utility spending on protocols that would ostensibly improve security and compliance with critical infrastructure protection requirements.
E-3 – California Independent System Operator Corporation (Docket No. EL21-19-000). Agenda item E-3 may be a new docket relating to a Show Cause proceeding brought by the Commission against California Independent System Operator Corporation (CAISO). The Commission may issue an order to CAISO pertaining to an investigation and identifying possible civil penalties or sanctions for the alleged matter.  ....

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