Federal Energy Regulatory Commission (FERC) Rejects Tariff Rate Increase Proposals Filed by Enterprise TEPPCO

NPGA is very pleased to announce that on Friday, March 2, 2012 the U.S. Federal Energy Regulatory Commission (FERC) rejected outright two tariff rate increase proposals filed sequentially by Enterprise TEPPCO on February 10th and 17th of this year.   

In its ruling, FERC stated that "...because both are deficient and not in compliance with the Commission's regulations, we reject Enterprise TE's tariff filings...without prejudice to Enterprise TE refiling the proposed tariff records in accordance with the Commission's regulations and the requirements of the Interstate Commerce Act."

This decision culminated an intense effort by NPGA and a coalition of 58 large and small propane marketers, state propane gas associations, and others shippers. Numerous other companies protested the increases independently as well. Never before had such a large and varied coalition presented a unified message to FERC in such a decisive fashion.  According to Rick Roldan, NPGA President and CEO, "This decision shows just how far our advocacy efforts have progressed in engaging FERC on the concerns our industry has with the propane pipeline delivery infrastructure. This decision will add momentum to our efforts in the future."

It is important to note that FERC's decision was largely procedural, citing various deficiencies and errors in the Enterprise TEPPCO materials. NPGA believes there is a strong likelihood that Enterprise TEPPCO will seek to refile in accordance with FERC regulations. Should that occur, we will be in a strong position to analyze it thoroughly to ensure that all rates to ship propane in the TEPPCO pipeline are just and reasonable.



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