Energy Industry
Industry: Email Alert RSS FeedPERC to study pipeline rate hike impact on consumers.(Propane Education & Research Council)
LP/Gas, November, 2006
The Propane Education & Research Council will spend $500,000 to study the impacts to consumers of pipeline rate changes.
At the urging of the National Propane Gas Association, the council will hire an economic consulting firm experienced in examining oil, natural gas and products pipelines' cost of providing transportation service. The firm will examine pipeline data and create methodologies to help determine what rates are "just and reasonable" to the Federal Energy Regulatory Commission. FERC regulates rates charged for transporting propane by pipeline based on operating and maintenance expenses; allowed return on rate base; income tax allowance; allocation of expenses and property, plant and equipment; volumes and rate design methodology.
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