FERC says oil pipelines may collect interest on remedial assessments, denies stay

WASHINGTON, Oct 15 — The Federal Energy Regulatory Commission (FERC) issued an order on Oct 15 saying that pipelines eligible for remedial charges under its oil pipeline index remedies order may collect interest on those amounts. It also denied a shipper group's request to stay that order pending judicial review.

The Remedies Order, issued on Nov 20, 2025, granted certain oil pipelines remedial relief for March 1, 2022, to Sept 17, 2024. During that period a lower index level of PPI-FG-0.21% was in effect, instead of PPI-FG+0.78%, according to the order in Docket Nos. RM93-11-004 and RM20-14-005.

The order granted clarification requests from Kinder Morgan, Inc. and Energy Transfer LP. The commission said its general policy is to award interest when crafting remedies. It said granting interest "is necessary to ensure full compensation to pipelines that were adversely affected by the Rehearing Order."

FERC also said recovery is not limited to pipelines that charged the maximum rates under the lower index. In the order, it named two situations in which pipelines that charged less may recover. One covers discount rates that followed a consistent historical practice.

The motion to stay came from Joint Commenters, which include Airlines for America, Chevron Products Company, the National Propane Gas Association and Valero Marketing and Supply Company. They said they had received invoices for millions of dollars in remedial assessments.

FERC said the group had not shown irreparable injury. It said it could award retroactive relief to shippers if a court vacates the Remedies Order.

The U.S. Court of Appeals for the District of Columbia Circuit vacated the lower index in Liquid Energy Pipeline Association v. FERC. The commission reinstated the higher index on Sept 17, 2024.