FERC Affirms And Clarifies Magellan Marketing Affiliate Order - Oil, Gas & Electricity
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FERC Affirms And Clarifies Magellan Marketing Affiliate Order - Oil, Gas & Electricity
Highlights
- After a five-year wait, the Federal Energy Regulatory
Commission (FERC) has denied rehearing of its 2017 order
in Magellan Midstream Partners,
L.P. (Magellan) that declared Magellan Midstream
Partners’ marketing affiliate proposal would violate the
Interstate Commerce Act’s (ICA) prohibitions against
rebates. - At the same time, however, FERC’s rehearing order provides
several important clarifications concerning 1) how it will assess
whether future marketing affiliate transactions create unlawful
rebates and 2) the scope of
its Magellan holdings. - FERC’s order turns on its analysis of
“integrated-company economics” among the pipeline, its
marketing affiliate and their common parent company, and in
FERC’s view, these economics can create the potential for an
implicit subsidy/unlawful rebate from the parent company to the
pipeline’s affiliated shipper to enable otherwise uneconomic
transactions.
FERC Affirms And Clarifies Magellan Marketing Affiliate Order - Oil, Gas & Electricity
FERC Affirms And Clarifies Magellan Marketing Affiliate Order - Oil, Gas & Electricity
After a five-year wait, the Federal Energy Regulatory Commission
(FERC) has denied rehearing of its 2017 order in Magellan
Midstream Partners, L.P., 161 FERC ¶ 61,219 (2017)
(Magellan) that declared Magellan Midstream Partners’
marketing affiliate proposal would violate the Interstate Commerce
Act’s (ICA) prohibitions against rebates. At the same time,
however, FERC’s rehearing order provides several important
clarifications concerning 1) how it will assess whether future
marketing affiliate transactions create unlawful rebates and 2) the
scope of its Magellan holdings.
FERC Affirms And Clarifies Magellan Marketing Affiliate Order - Oil, Gas & Electricity
FERC’s order turns on its analysis of
“integrated-company economics” among the pipeline, its
marketing affiliate and their common parent company. In FERC’s
view, these economics can…
FERC Affirms And Clarifies Magellan Marketing Affiliate Order - Oil, Gas & Electricity
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FERC Affirms And Clarifies Magellan Marketing Affiliate Order - Oil, Gas & Electricity
FERC Affirms And Clarifies Magellan Marketing Affiliate Order - Oil, Gas & Electricity