Oil Pipeline Rates and Profitability under Williams Opinion 154

摘要

The purpose of this study is to develop an economic and financial model which will assist regulatory policymakers in understanding the implications of the methodology outlined by the Federal Energy Regulatory Commission (FERC) in Opinion 154 for oil pipeline rates and profitability. This report, which accompanies the model, is divided into three sections. One describes the Williams Opinion 154 methodology in some detail, focusing on areas that present problems of interpretation. In Section Two the economic and financial model of oil pipeline rates is described in terms of its structure and operation. As a general matter, this section is not designed to be a user's manual for the model, but is instead intended to provide an understanding of the model and the choices made by the authors in its development. (ERA citation 10:000184)