Airline, gas associations request extension of affiliate Standards of Conduct regulations to multiproduct pipeline industry
Airlines for America (A4A) and the National Propane Gas Association (NPGA) recently filed a Petition for Rulemaking at the Federal Energy Regulatory Commission (FERC) requesting that the commission extend its affiliate Standards of Conduct regulations to the multiproduct pipeline industry.
A4A said in a press release that public information indicates that crude oil, natural gas liquid, and petroleum pipelines appear to have offered preferential rates to their marketing affiliates not offered to non-affiliated shippers and shared non-public transmission information with affiliated marketing entities.
These actions, A4A said, violate the Interstate Commerce Act (ICA), which is intended to ensure that common carriers treat all shippers equally in terms of transportation access and price. Expanding the Standards of Conduct, the release said, would prevent these actions from occurring.
FERC’s Standards of Conduct currently apply to the electric power and natural gas industries.
“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,” David Berg, senior vice president and general counsel for A4A, said.
FERC will now review the petition and decide whether to initiate procedures for a rulemaking that would allow interested parties to comment on the proposed regulation.
