Fair and Reasonable Shipping Rates Established on Critical Energy Pipeline
Washington, DC (June 3, 2013) – On Friday, May 31, the Federal Energy Regulatory Commission (FERC) established shipping rates on the Enterprise TE Products Pipeline (Enterprise) that are “fair, reasonable, and in the public interest.” The new rates end more than a year of legal proceedings between Enterprise and a propane industry coalition of more than 80 companies created and led by the National Propane Gas Association. The group came together last year to protest increased shipping rates on the Enterprise pipeline.
“Propane is an important part of America’s comprehensive energy strategy. Maintaining fair and reasonable rates on the pipelines that deliver propane to customers across the nation not only benefits our industry, but energy consumers across the country,” said Rick Roldan, NPGA’s President and CEO. “The Enterprise pipeline is a critical link in the propane industry’s delivery infrastructure, and we’re confident this rate certainty will help the industry continue to grow and support America’s clean energy goals,” Roldan continued.
The settlement agreement, approved by FERC, establishes stable shipping rates for the next two years, and it postpones a 4.5 percent FERC index rate increase until July 1, 2014. Under the agreement, nearly all of the rates to ship propane will be lower than those sought by Enterprise in its initial rate increase filing. The new shipping rates became effective on May 1, 2013, and remain in effect for the next two years. The agreement will reduce the costs of shipping propane to consumers by $40-$70 million.
The propane industry was also successful in delaying by seven months, the longest period allowed by law, the initial implementation of Enterprise’s proposed rate increase. On average, this delay saved every propane marketer about $1,000 per transport load.
Highlighting the commitment of NPGA’s coalition, Pipeline Advocacy Task Force Chairman Tom Van Buren stated, “This positive outcome for the propane industry could not have been achieved without the strong participation of the members of the Propane Group Coalition. Pipeline costs affect all marketers and we’re proud to be advocates for our industry and our customers.”
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