FERC Reasonably Approved Oil Pipeline Rates, D.C. Circuit Says

Two customers of a crude oil pipeline on Friday lost their challenge to Federal Energy Regulatory Commission orders approving the pipeline company’s application to charge market-based rates for shipping services.

FERC provided “intelligible reasons” for determining that combined regions of Illinois served as the appropriate destination market to analyze whether a pipeline had market power for its shipping services, Judge Douglas H. Ginsburg said for the US Court of Appeals for the D.C. Circuit.

Husky Marketing & Supply Co. and Phillips 66 Co. ship crude oil on the MPLX Ozark, a pipeline that runs 433 miles from Cushing, Okla., to ...