FERC Announces Alternative Dispute Resolution Process for Midwest Propane Situation

The Federal Energy Regulatory Commission this week announced an alternative dispute resolution process with propane distributors regarding issues in the Midwest. The effort includes pipeline companies, shippers and their representatives to explore actions the commission and the industry can take to alleviate propane pipeline constraints in the region. Farmers, dealing with a soggy harvest, are facing trouble finding propane to dry wet grain in select states. In the announcement, the commission stated the action was a direct result of conversations and letters from Iowa Governor Kim Reynolds and lawmakers in Congress. Additionally, the commission issued an order accepting a proposal by Enterprise TE Products Pipeline Company LLC, providing emergency transportation service of propane to the Midwest region for a 30-day period. Commission Chairman Neil Chatterjee says, “the commission takes this issue seriously,” adding “by bringing the pipelines and shippers to the table, we are building on these efforts and establishing a dialogue focused on exploring concrete solutions.”