FERC Rejects Proposed Injection Allocation Policy Change on Dixie

On August 15, 2012, the Federal Energy Regulatory Commission (FERC) issued an order rejecting Dixie Pipeline's proposal to change its injection capacity allocation policy. The proposal, filed with FERC in December 2011, was designed to eliminate an inadvertent allocation preference for a single large short-haul shipper to the detriment of all other shippers. NPGA worked with Dixie officials in the development of the proposed policy and intervened in support after it was filed. Nevertheless, FERC decided that despite the considerable latitude afforded to pipelines in developing methods for allocating pipeline capacity, the proposed change would unjustly subject a single company to undue or unreasonable prejudice or disadvantage. Any party may seek rehearing of this result, but NPGA believes such a request would not likely lead to a different result.



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