FERC STAFF PERCEIVES UNRESOLVED MARKET POWER ISSUES DESPITE SETTLEMENT AGREEMENT BETWEEN MAGELLAN PIPELINE AND HOLLYFFRONTIER

摘要

In an unexpected gesture, FERC's Trial Staff late last month registered its formal opposition to an Offer of Settlement filed recently by Magellan Pipeline Co. LP (OR10-6) and Frontier Oil and Refining Co. (HollyFrontier), which would lead to granting Magellan's January 2010 application for market-based rates on its Mountain System. Staff insisted there are issues concerning Magellan's ability to exercise market power in the "Origin Market" and the settlement offer itself fails to comport with the Commission's policies guiding the approval of market-based rate authority applications. Therefore, it is not fair and reasonable, is not in the public interest, and will not ensure just and reasonable rates. Trial Staff requested that the Presiding Judge refuse to certify the Offer to the Commission. If the Presiding Judge does certify, Trial Staff requested that the Commission reject it in its entirety.