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Ohio Utica Shale

FERC orders more propane shipments to Midwest, Northeast

By Bob Downing Published: February 11, 2014

From the Federal Energy Regulatory Commission on Friday:

FERC Acts to Help Alleviate Propane Shortages in Midwest, Northeast

The Federal Energy Regulatory Commission (FERC) today invoked its emergency authority under the Interstate Commerce Act to help alleviate a shortage of propane supplies to consumers in the Midwest and Northeast.

The Commission’s order directs Enterprise TE Products Pipeline Company, LLC to temporarily provide priority treatment to propane shipments from Mont Belvieu, Texas, to the Midwest and Northeast regions suffering from severe cold weather.

“We’re mindful of the emergency situation that has developed in parts of the country where bitter cold weather has created problems for consumers who need supplies of propane,” Acting FERC Chairman Cheryl LaFleur said. “The problem is acute enough that we feel it is important for us to take this step.”

This marks the first time that FERC has used its emergency authority under the Interstate Commerce Act. Section 1(15) of the Act states that whenever the Commission is of the opinion that an emergency requiring immediate action exists in any section of the country, it has authority to give directions for preference or priority in transportation, embargoes or movement of traffic.

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