FERC ISSUES NOTICE REGARDING ANNUAL CHANGE IN PRODUCER PRICE INDEX FOR FINISHED GOODS

WASHINGTON, May 19 -- The U.

S. Department of Energy's Federal Energy Regulatory Commission issued the following notice:

Revisions to Oil Pipeline Regulations Docket No. RM93-11-000

Pursuant to the Energy Policy Act of 1992

NOTICE OF ANNUAL CHANGE IN THE PRODUCER PRICE INDEX FOR FINISHED GOODS

The Commission's regulations include a methodology for oil pipelines to change their rates through use of an index system that establishes ceiling levels for such rates. The Commission bases the index system, found at 18 CFR Section 342.3, on the annual change in the Producer Price Index for Finished Goods (PPI-FG), plus one point three percent (PPI+1.3). The Commission determined in an "Order Establishing Index For Oil Price Change Ceiling Levels" issued March 21, 2006, that PPI+1.3 is the appropriate oil pricing index factor for pipelines to use.

The regulations provide that the Commission will publish annually, an index figure reflecting the final change in the PPI-FG, after the Bureau of Labor Statistics publishes the final PPI-FG in May of each calendar year. The annual average PPI-FG index figures were 177.1 for 2008 and 172.5 for 2009. Thus, the percent change (expressed as a decimal) in the annual average PPI-FG from 2008 to 2009, plus 1.3 percent, is negative 0.012974. Oil pipelines must multiply their July 1, 2009, through June 30, 2010, index ceiling levels by positive 0.987026 to compute their index ceiling levels for July 1, 2010, through June 30, 2011, in accordance with 18 CFR Section342.3(d). For guidance in calculating the ceiling levels for each 12 month period beginning January 1, l995, see Explorer Pipeline Company, 71 FERC 61,416 at n.6 (1995).

In addition to publishing the full text of this Notice in the Federal Register, the Commission provides all interested persons an opportunity to view and/or print this Notice via the Internet through FERC's Home Page (http://www.ferc.gov) and in FERC's Public Reference Room during normal business hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street, NE, Room 2A, Washington DC 20426. The full text of this Notice is available on FERC's Home Page at the eLibrary link. To access this document in eLibrary, type the docket number excluding the last three digits of this document in the docket number field and follow other directions on the search page.

User assistance is available for eLibrary and other aspects of FERC's website during normal business hours. For assistance, please contact the Commission's Online Support at 1-866-208-3676 (toll free) or 202-502-6652 (e-mail at FERCOnlineSupport@ferc.gov), or the Public Reference Room at (202) 502-8371, TTY (202)502-8659. E-Mail the Public Reference Room at public.referenceroom@ferc.gov.

Kimberly D. Bose,

Secretary.

* This document has footnotes and they may be viewed at:

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