Airlines for America and the National Propane Gas Association Seek Regulation to Ensure Equal Pricing and Transportation Access for Pipeline Shippers | Business Wire

Public information indicates that crude oil, natural gas liquid, and petroleum pipelines appear to have been engaged in offering preferential, discriminatory rates to their marketing affiliates not offered to non-affiliated shippers, and shared non-public transmission information with affiliated marketing entities. Such abuses violate the Interstate Commerce Act (ICA), the law intended to ensure that common carriers, including crude oil, natural gas liquid, and petroleum product pipelines, treat all shippers equally in terms of transportation access and price.

Applying FERC’s Standards of Conduct, currently applicable to the electric power and natural gas industries, to crude oil, natural gas liquid, and petroleum product pipelines is a common sense solution to limit these abuses that harm non-affiliated shippers and distort the market for pipeline transportation of refined products used daily by consumers and members of A4A and NPGA.

“With billions of gallons of jet fuel shipped and consumed annually, the U.S. airline industry has a vested interest in ensuring that interstate pipelines provide reliable, cost-effective jet fuel transportation enabling affordable, on-time airline operations for passengers and cargo,” said David Berg, senior vice president and general counsel for Airlines for America. “FERC must take appropriate action to promote pricing transparency, market efficiency and competition among pipelines and prevent unlawful coordination between pipelines and marketing affiliates to ensure equal access to pipelines and fair, non-discriminatory pricing.”

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Airlines for America and the National Propane Gas Association Seek Regulation to Ensure Equal Pricing and Transportation Access for Pipeline Shippers | Business Wire.