FERC Allows Pipeline Client $1B Expansion

Steptoe’s Pipeline group achieved a significant victory on behalf of our client, Colonial Pipeline Company, in a case involving Colonial’s petition for declaratory order filed at the Federal Energy Regulatory Commission (FERC) about a proposed $1 billion expansion of its pipeline system.  As demand has grown along the Gulf Coast-New York City route, the pipeline has reached capacity. 

Steptoe’s client proposed expanding its system, but stated that it requires significant financial incentives to warrant such an enormous investment.  Various parties, including a group of major airlines, opposed Colonial’s proposed rate treatment, even though they generally favored the project.  FERC granted the petition in virtually all respects, which will allow this important project to go forward.

Colonial is the largest US transporter of refined petroleum products and operates across the Eastern and Southern United States.