On Tuesday February 21, 2012, NPGA's Executive Committee unanimously voted to approve NPGA's participation in a formal protest against TEPPCO's cost-of-service filing proposed to raise rates for most destinations on the pipeline. The committee was concerned with the sheer magnitude of the rate increases, and the lack of data justifying them. The committee was particularly sensitive to the concerns expressed by shippers, marketers, and other industry participants that the rate increases, if allowed to stand, would pose a significant hurdle to the future competitiveness of propane as an energy choice for customers. It would also likely lead to an increase of rates on other transportation modes, such as railroads and common carrier trucking.
The protest must be filed by Monday, February 27, 2012 which is the deadline under the rules administered by the Federal Energy Regulatory Commission (FERC). FERC can be expected to rule on the pipeline's rate increase proposal - and the validity of NPGA's protest - sometime nearer to the March 12, 2012 proposed effective date.
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