FERC Reaffirms Opinion No. 502 Setting Interstate Oil Pipeline Rates for Trans Alaska Pipeline System (TAPS), But Directs Carriers to Devise a Better Pooling Mechanism That Will Guard Against Over- and Under- Recoveries

摘要

FERC, by order issued 11/20/08, jiggered one element of Opinion No. 502 (IS05-82 et al.), issued last 6/20/08, with respect to interstate rates for the Trans Alaska Pipeline System (TAPS). Opinion 502, an order on exceptions to an Initial Decision issued on 5/17/07, dealt with TAPS Carriers' 2005 and 2006 interstate rate filings. The Initial Decision found that proposed interstate oil transportation rates are not just and reasonable, determined the components for establishing the rates for 2005 and 2006, and ordered limited refunds. Opinion 502 affirmed the Administrative Law Judge (ALJ) on all issues, but clarified and modified some issues. The Commission also directed the TAPS Carriers to make a compliance filing establishing rates for the years in question. The TAPS Carriers, BP Pipelines (Alaska) Inc. (BP), and Williams Alaska Petroleum Inc. filed requests for rehearing of Opinion 502. The Commission granted in part and denied in part the requests, and required further action by the TAPS Carriers. The TAPS Carriers will have to amend their operating agreement to include a pooling mechanism based on usage and not on ownership share.