FERC allows TEPPCO index rate increase

July 10, 2012 By    

Enterprise TEPPCO petitioned the Federal Energy Regulatory Commission (FERC) on June 1 to raise its current rates by 8.66 percent, which is the new annual index rate increase allowed under FERC regulations. The increase went into effect July 1.

NPGA responded by protesting the TEPPCO filing on two grounds, arguing first that TEPPCO forfeited its right to seek the index increase when it filed earlier in the year for its major cost of service rate increase. NPGA also argued that allowing the index increase would nullify the purpose of FERC’s suspension order, delaying the pipeline’s requested rate increase for the maximum seven months.

In its June 29 order, FERC ruled that TEPPCO’s index rate increase “does not circumvent the suspension order.” Furthermore, FERC ruled that because the index adjustment increase applies to the existing rates, and the suspension order only applied to the proposed rates, the 8.66-percent increase would go into effect as proposed on July 1.

About the Author:

Kevin Yanik was a senior editor at LP Gas Magazine.

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