HOUSTON, Oct. 16, 2012 (GLOBE NEWSWIRE) -- Buckeye Partners, L.P. (NYSE:BPL) ("Buckeye") announced today that Buckeye Pipe Line Company, L.P. ("Buckeye Pipeline") filed an application with the Federal Energy Regulatory Commission ("FERC") seeking authority to charge market-based rates for deliveries of refined petroleum products to the New York City-area market ("Application").
In the Application, Buckeye Pipeline seeks market-based rates from its three origin points in northeastern New Jersey to its five destinations on its Long Island System, including deliveries of jet fuel to the Newark, LaGuardia, and JFK airports. These jet fuel delivery rates were the subject of a complaint filed by Delta Air Lines, United/Continental Airlines, JetBlue Airways, and US Airways on September 20, 2012 in FERC Docket No. OR12-28. If the Application is granted by FERC, Buckeye Pipeline would be permitted prospectively to set its rates with respect to these origins and destinations in response to competitive forces. The airlines' September 20th complaint alleged that Buckeye Pipeline's jet fuel delivery rates to the New York City airports are unjust and unreasonable under the Interstate Commerce Act based on a cost over-recovery rationale. This issue would no longer be relevant with respect to Buckeye Pipeline's future rates upon the granting of the Application.
As the Application indicates, Buckeye Pipeline believes that the New York City-area market is robust and highly competitive—the New York Harbor is one of the world's most active refined petroleum products markets. Within this market, Buckeye Pipeline's customers have access to numerous existing alternatives, via pipeline, barge, and truck, to transport refined products and, with reasonable investment, the three airports should be able to access alternative jet fuel supplies efficiently and economically. Consequently, Buckeye believes it is appropriate that it be permitted to charge market-based rates for its services in this market. Buckeye remains committed to providing safe and economic transportation of refined products to its customers in the New York City-area market.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts