This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Buckeye To Defend Rates Against Airlines' Complaint

Stocks in this article: BPL

For over two decades, all of Buckeye Pipeline's interstate rates have been set under an innovative competitive rate program approved by FERC in 1991. This program caps annual rate increases in markets that FERC found to be competitive and links rate increases in other markets to those capped competitive rates. In contrast, under FERC's subsequent regulations standardizing the setting of market-based rates, there are no caps on rates in competitive markets. When it approved the program in 1991, FERC determined that 15 of the 20 markets then served by Buckeye Pipeline were competitive and four were not competitive. FERC made no determination regarding whether the remaining market – New York City – was competitive. Buckeye Pipeline believes that the New York City market is competitive and intends to file an application with FERC seeking authority to charge market-based rates for jet fuel deliveries to the New York City airports.

During the 21 years the competitive rate program has been in place prior to the filing of the complaint, Buckeye Pipeline has received just two challenges to its rates – a 2011 Delta protest that was resolved without FERC action and a March 2012 protest by Delta. In response to Delta's 2012 protest, FERC issued an order on March 30, 2012 rejecting Buckeye Pipeline's proposed rate increases and providing that it would review the competitive rate program. The order further directed Buckeye to justify why the program should be continued and invited any interested customers to file comments. Buckeye Pipeline responded, presenting data indicating that the competitive rate program has performed in line with industry experience and overall cost trends and should be maintained. In response to FERC's invitation to Buckeye Pipeline's customers, Delta filed substantive comments opposing the program, three airlines and a committee representing jet fuel consumers at John F. Kennedy airport filed comments supporting Delta, and three companies intervened without taking a position for or against the competitive rate program. FERC has not yet issued a decision in this proceeding.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs