October 18, 2011

FERC Helps the Pipelines Gouge the Public

David Johnston, Reuters


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Last year a fourth of the nation’s oil pipelines earned excessive profits, at up to seven times the rates allowed these regulated monopolies, according to an explosive analysis prepared by a former general counsel for the U.S. Federal Energy Regulatory Commission.  R. Gordon Gooch, the former counsel, alleges in his Oct. 3 study, for instance, that Sunoco’s Mid-Valley Pipeline, which carries crude oil from Texas to Michigan, earned a 55 percent return on assets. That is seven times its authorized profit margin, based on a calculation derived from an accounting report the company filed with FERC. . .

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TAGGED: public utilities, oil, oil company profits, energy regulations, Federal Energy Regulatory Commission, Reuters

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