Critical Fuel Supply Could Be Jeopardized Without FERC Settlement Enforcement

Washington, DC (July 1, 2013) – On Friday, June 28, 2013, the National Propane Gas Association filed a Motion to Intervene and Comments in Support of Complaint on behalf of CHS, Inc. et al against Enterprise TE Products Pipeline Company (Enterprise) calling on the Federal Energy Regulatory Commission (FERC) to assert its “authority to order Enterprise TEPPCO to continue providing interstate distillate and jet fuel service.” 

Noting the specific importance to the propane industry and future actions before FERC, the filing states, “NPGA is concerned that Enterprise TEPPCO could next decide to stop providing propane transportation.  Certainly, if the Commission upholds Enterprise TEPPCO’s actions, NPGA and its members will be wary of committing to any settlements in the future.”

Effective June 1, Enterprise TEPPCO withdrew its jet fuel and distillate service, contrary to the recent Settlement Agreement between Enterprise, a refined products coalition, and a propane industry coalition of more than 80 companies.  The abandonment of jet fuel and distillate service effectively withdraws certain of the shipping rates agreed to in the Settlement Agreement by Enterprise TEPPCO and approved by FERC only the preceding day.   

NPGA states in its filing that:

When Enterprise TEPPCO entered into the Settlement Agreement, it promised to provide specific services for the term of the Settlement Agreement.  These commitments trump any independent authority it would have to abandon service, just as they trump any independent authority it would have had to change these rates, and just as the protesters’ commitments trump any rights the protestors would have had to challenge the rates.

“The Enterprise pipeline is a critical link in our nation’s fuel delivery infrastructure,” said Rick Roldan, NPGA’s President and CEO.  “It is incumbent on FERC to uphold the agreements maintaining the reliable supply of fuel for our energy needs.” 

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