FERC Publishes Five Year Index

On November 19, the Federal Energy Regulatory Commission (FERC) published its docket on the 2026-2031 Five Year Index. The Commission proposes to utilize the middle 80% of data, and establish a 5 Year Index of the Producer Price Index (PPI) minus 1.42%. NPGA and its outside counsel will be contesting this proposal, seeking to utilize the middle 50% of data, and establish a 5 Year Index of the PPI minus 1.93%.

Separately, on November 20, FERC issued an Order on our two outstanding issues. As a reminder, NPGA and its counsel asked FERC to invalidate retroactive charges assessed by pipelines between March 1, 2022, and September 17, 2024. NPGA and its counsel also asked FERC to reinstate the prior Five Year Index for 2021-2026, which was the PPI minus 0.21% for the remainder of its term. FERC ruled against our position in both arguments in this decision. FERC reasoned that the retroactive charges were appropriate to make the pipelines whole as if the amended Five Year Index at PPI minus 0.21% had never been put in place. Further, FERC provided the opportunity for notice and comment to revise the 2021 5 Year Index back down to PPI minus 0.21% from the current PPI plus 0.78% late last year, but, in this order, exercised its discretion not to change the current 5 Year Index.

NPGA will continue to work on behalf of the propane industry to achieve the most favorable rates possible under the upcoming 5 Year Index. For questions or additional information, please contact Benjamin Nussdorf.