FERC Splits Decision on Origin and Destination Markets of Magellan Pipeline; Expresses Concern about Possible Market Power in the Origin Market for Petroleum Products; Sets Questions for Hearing

摘要

By order issued on 7/7/10 FERC set for hearing two issues - regarding the composition of the origin market and quality of alternative options for shippers - in connection with the 1/15/10 Magellan Pipeline Co., LP (OR10-6) application for authority to charge market-based rates for the transportation of refined petroleum products from its origins at McPherson and El Dorado, Kansas (McPherson-El Dorado) to its destination at Aurora, Colorado (near Denver). The Commission found, nevertheless, that Magellan lacks significant market power in the Aurora destination market and will permit Magellan to charge market-based rates on this segment of its system.