Oil Pipelines Deflate: FERC's -1.42% Rate Riddle
Published Date: 11/24/2025
Proposed Rule
Summary
The Federal Energy Regulatory Commission wants to update the yearly rate limits for oil pipelines starting July 1, 2026, using a new index that’s the Producer Price Index for Finished Goods minus 1.42%. This affects oil pipeline companies and could change how much they can charge for transportation. People have until December 24, 2025, to share their thoughts on this plan before final decisions are made.
Analyzed Economic Effects
4 provisions identified: 1 benefits, 0 costs, 3 mixed.
Index set to PPI‑FG minus 1.42%
The Commission proposes to use the Producer Price Index for Finished Goods (PPI‑FG) minus 1.42% as the index level to set annual oil pipeline rate ceilings for the five-year period commencing July 1, 2026. This proposal would be used when pipelines adjust rate ceilings each July 1 and therefore directly affects oil pipeline companies and shippers.
Revenue effects versus two baselines
The Commission's Regulatory Impact Analysis says adopting the proposed index would reduce interstate oil pipeline transportation revenues over 2026–2031 compared to keeping the 2021–2025 index level (Baseline 1), but would increase revenues over 2026–2031 compared to having no effective index (Baseline 2). The RIA notes these are the primary measurable effects and that broader effects on commodity prices or consumers are considered minimal or attenuated.
Middle 80% trimming and exclusion of late resubmissions
For the five-year review the Commission proposes trimming the data set to the middle 80% of pipelines and to calculate the index using pipelines' originally submitted FERC Form No. 6, page 700 data for 2019. The Commission notes that 61 pipelines resubmitted page 700 data for 2019 since April 2025 and states it did not include those late resubmissions in the proposed index calculation.
Small pipelines: 43 entities identified
Using the SBA definition (fewer than 1,500 employees), the Commission identified 43 small oil pipeline entities that the proposed rule will affect. The Commission certified that the proposed rule will not have a significant economic impact on a substantial number of small entities and states that the hourly burden for submitting a tariff filing remains 7 hours ($721).
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Key Dates
Department and Agencies
Related Federal Register Documents
2026-16739, Venture Global CP2 LNG, LLC, Venture Global CP Express, LLC; Notice of Scoping Period Requesting Comments on Environmental Issues for the Proposed CP2 LNG Expansion Project, and Notice of Public Scoping Sessions
2026-16616, Regulatory Agenda
We are publishing our regulatory agenda (the Agenda) in accordance with Public Law 96-354, "The Regulatory Flexibility Act," and Executive Order 12866, "Regulatory Planning and Review." FERC's complete Agenda, available on OMB's website at https://www.reginfo.gov, is a compilation of all rulemaking activities on which we have recently completed action or have proposed or are considering action. Our last Agenda was provided in May 2025 and in this current agenda, we have listed 42 rulemaking activities. We also note that the Agency has one inactive rulemaking that is not listed in this Agenda. This issuance of our Agenda contains ten (10) Pre-Rules, eleven (11) Notice of Proposed Rules, eight (8) Final Rules, and thirteen (13) Completed activities. Four (4) rulemakings are Section 3(f)(1) Significant; two (2) are Other Significant; one (1) is a routine rulemaking activity; two (2) are administrative, and thirty-two (32) are Substantive, Nonsignificant rulemaking activities.
2026-16637, Combined Notice of Filings
The Federal Energy Regulatory Commission got new filings from several natural gas pipeline companies about rate changes and rule updates. These changes could affect pipeline rates starting as soon as July 9, 2026, and some compliance updates kick in January 1, 2027. If you want to speak up or get involved, you need to comment by late August 2026.
2026-16633, Columbia Gulf Transmission, LLC; Notice of Availability of the Environmental Assessment for the Proposed Maysville Project
2026-16525, Combined Notice of Filings
The Federal Energy Regulatory Commission got new filings from natural gas pipeline companies about their rates and refunds. These filings could change how much customers pay starting as soon as September 1, 2026. If you want to speak up or get involved, you need to act by mid to late August.
2026-16418, NorthWestern Corporation; Notice of Institution of Section 206 Proceeding and Refund Effective Date
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