Puzzling PLA: Inside Colonial Pipeline's Tariff Turmoil

Puzzling PLA: Inside Colonial Pipeline's Tariff Turmoil

FERC's landmark ruling on Colonial Pipeline's product loss allowance (PLA) charges could reshape industry practices. With no one-size-fits-all approach to PLA across the sector, this decision may set a precedent for how pipelines account for losses, handle transmix, and structure their tariffs.

Our latest ArView summarizes the seven-years-long Colonial proceeding and ripple effects that could impact regulatory and accounting operations across the liquids sector — from changes in cost recovery mechanisms to increased tariff transparency.

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We analyzed products tariffs in Arbo's Liquids Commerce Platform to prudent to compare PLA and transmix handling practices.



Adam Cummins

Now Retired : Formerly Director -FERC Compliance and Regulatory Planning at NuStar Energy L.P.

9 个月

Sometimes the Commission ALJ orders are adding to, rather than resolving, the issues. Time and the courts will hopefully render clarity.

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