Reuters: Regulatory News: Regulators allow Mobil to raise Pegasus pipeline rates

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Regulators allow Mobil to raise Pegasus pipeline rates Sep 27th 2012, 21:55 NEW YORK, Sept 27 | Thu Sep 27, 2012 5:55pm EDT NEW YORK, Sept 27 (Reuters) - The Federal Energy Regulatory Commission (FERC) on Thursday approved the increased tariff requested by Mobil Pipeline for its Illinois-to-Texas crude oil line, saying it lacked significant "market power" to control rates. In a closely watched case cited by many pipeline operators in their FERC tariff filings, this ruling overturns FERC's previous ruling with implications for other pipeline tariff cases based on market power. That would include Delta Air Lines and other airlines' filing against Buckeye Partners LP seeking to lower pipeline tariffs on jet fuel moving in the Northeast. The crux of Mobil's case was whether its pipeline possessed market power, or was there enough competition from other means to set market-based rates, including pipelines to carry Canadian crude from Patoka, Illinois to Nederland, Texas, and the refineries along the U.S. Gulf Coast. Mobil Pipeline, a unit of Exxon Mobil Corp had reversed its Pegasus pipeline to carry crude - mostly Canadian - from Illinois to the U.S. Gulf. In 2007, Mobil filed with FERC to set the tariffs, saying because it did not have market power, it should be free to calculate its rates. Canadian shippers disagreed and in 2009 FERC ruled in their favor, saying that Mobil did not demonstrate it lacked market power and denied its application for market-based rates. Mobil took the case to the District of Columbia Circuit Court in 2011, which vacated the FERC order and in 2012 denied appeals by shippers, who claimed that there were still appeals pending. FERC disagreed and allowed Mobil to set its rates. Mobil raised its tariffs to $5.091 a barrel from $1.571. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions