FERC PROPOSES OIL PIPELINE RATEMAKING CHANGES

07/12/1993
Federal Energy Regulatory Commission has proposed a rule to streamline and revamp oil pipeline ratemaking. FERC plans to issue a final rule on oil pipeline rates by Oct. 24. It would take effect 12 months after issuance. Required by the 1992 Energy Policy Act, the proposed rule would adopt indexing as its general approach to regulating oil pipeline rates. The index would determine a ceiling rate for oil pipelines, although pipelines could set rates below that ceiling. FERC proposed the indexing method be based on the Gross Domestic Product-Implicit Price Deflator. It said that approach would meet the l...
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