correspondence and communications concerning this proceeding should be addressed are as
follows:
Michael L. Jones John E. Kennedy
Plains Pipeline, L.P. Elizabeth B. Kohlhausen
P. O. Box 4648 Vinson & Elkins L.L.P.
Houston, TX 77210-4648 First City Tower
713.646.4335 1001 Fannin Street, Suite 2500
mljones@paalp.com Houston, TX 77002-6760
713.758.2550
jkennedy@velaw.com
ekohlhausen@velaw.com
II.
ANSWER
A. Plains Is Entitled to Apply the Commissions 2012 Index Adjustment to its Rates
Under Commission Precedent.
Plains application of the 2012 Index to its rates is justified under the Commissions
well-established standard for evaluating protests to indexing adjustments. The Commissions
regulations state that a protest to an index rate filing must allege reasonable grounds for
asserting that the rate violates the applicable ceiling level, or that the rate increase is so
substantially in excess of the actual cost increases incurred by the carrier that the rate is
unjust and unreasonable .4 When determining whether a protest meets the second prong
of the Section 343.2(c)(1) standard, the Commission has held that:
[t]o maintain the relative simplicity of the oil indexing process, the
Commission evaluates a protest to an index-based tariff filing using the data
reported in the carriers FERC Form No. 6, page 700 data in a percentage
comparison test. The percentage comparison test is a very narrow test that
compare[s] the Page 700 cost data contained in the companys annual FERC
Form No. 6 to the data that is reflected in the index filing for a given year with
the data for [the] prior year . This test is the preliminary screening tool
for pipeline [index-based] rate filings, and is the sole means by which the
Commission determines whether a protest meets the section 343.2(c)(1)
standard.5
4
18 C.F.R. 343.2(c)(1) (2012).
5
SFPP, L.P., 135 FERC 61,274, at P 9 (2011) (footnotes omitted).
2
UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
Plains Pipeline, L.P. Docket No. IS12-362-000
Tariff Nos. 74.6.0, 86.2.0, 104.2.0,
and 109.2.0
RESPONSE OF PLAINS PIPELINE, L.P. TO
MOTION TO INTERVENE AND PROTEST OF
VALERO MARKETING AND SUPPLY COMPANY
Pursuant to Rule 343.3(b) of the Procedural Rules Applicable to Oil Pipeline
Proceedings of the Federal Energy Regulatory Commission (FERC or Commission)1 and
Rule 213 of the Procedural Rules of the Commission,2 Plains Pipeline, L.P. (Plains) hereby
submits its response to the Motion to Intervene and Protest of Valero Marketing and Supply
Company (Valero) filed on June 14, 2012 (Protest). In the Protest, Valero challenges the
rate increases that Plains made in Tariff ...
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