Energia i gospodarka · 16.11.1994

Market-based Ratemaking for Oil Pipelines

The Federal Energy Regulatory Commission is amending its regulations to adopt filing requirements and procedures with respect to an application by an oil pipeline for a determination that it lacks significant market power in the markets in which it proposes to charge market-based rates. This rule adopts procedural rules in order to implement the Commission's Order 561 market-based ratemaking policy, which was published in the Federal Register on November 4, 1993. In that order, the Commission adopted a simplified and generally applicable ratemaking methodology for oil pipelines, which is an indexing system to establish ceilings on those rates. The Commission also continued its policy of allowing an oil pipeline to attempt to show that it lacks significant market power in the market in which it proposes to charge market-based rates. However, an oil pipeline may not charge market-based rates until the Commission concludes that the oil pipeline lacks significant market power in the relevant markets.