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Colonial Pipeline to Add Fixed Charges for Losses: Argus

PIPELINE

The Colonial Pipeline is preparing to introduce a 33.29 cents/b products loss allocation (PLA) charge to recover the cost of products lost to evaporation and pipeline mixing, according to Argus.

  • This will replace a previous fee that Federal regulators said was insufficiently transparent, Argus added.
  • The new charges will be the same regardless of haul length and will commence April 1 through to March 31, 2025.
  • Colonial transports refined products from the USGC to markets in the eastern US and was previously collecting a fee based on haul length.
  • However, the calculation for the charge lacked transparency and the FERC demanded its change.
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