Chevron & Others Demand Hearing with FERC on Colonial Rates
U.S. regulators have been begged to expedite a hearing on the fee structure of Colonial Pipeline Co, the largest fuel pipeline in the United States. The complaint was filed by Chevron Corp, Valero Energy Corp, and Delta Air Lines Inc, claiming that the fee structure of Colonial costs them millions of dollars. The complaint also cites that Colonial has overcharged the companies by over $60 million combined over a two-year period, and accuses Colonial of likely monopolizing the fuel delivery into the New York region.
The three companies have stated that the lack of a scheduled hearing by the U.S. Federal Energy Regulatory Commission (FERC) is currently costing them almost $4.95 million a month. The complaint has been pending with FERC for nine months.
Colonial, which has over 5,500 miles of pipeline system that connects the Gulf Coast refineries to markets in the southern and eastern U.S., says that the complaint has no merit and that the data the companies used has been manipulated to strengthen their argument.
Tamara Young-Allen, the FERCA spokeswoman, declined to comment on the filed complaint, stating that it is policy to make no comment on a pending Commission decision.
More information on the filed complaint can be found here.
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