Power & Pipes

Following its December 17 open meeting, FERC issued an order withdrawing and terminating a proceeding that had been opened earlier this year to examine oil pipeline affiliate contracts. FERC initiated that proceeding on October 15, 2020, when it issued a proposed policy statement outlining how FERC would evaluate whether a contract between an oil pipeline carrier and its affiliate resulting from an open season process is just and reasonable and not unduly discriminatory under the Interstate Commerce Act (ICA).

The Commodity Futures Trading Commission (CFTC) recently issued an interim report by CFTC Staff on the April 2020 price collapse of the West Texas Intermediate light sweet crude oil futures contract (WTI Futures Contract). Since May, CFTC Staff has been reviewing the $55 per barrel plunge in the WTI Futures Contract, which resulted in not only the lowest settlement price since trading began 37 years ago, but the first negative settlement price. Though this report may be better than nothing at all, at present, the CFTC has provided little guidance and comfort to those actively trading regulated crude oil derivatives or those impacted adversely by the April price crash. The CFTC Staff has not indicated when it will issue a final report.

FERC has issued an order extending the blanket waivers of all requirements to hold meetings in person and/or to provide or obtain notarized documents in open-access transmission tariffs through January 29, 2021. The order continues the blanket waivers first issued on April 2, 2020, in response to requests from regulated entities, which were set to expire on September 1, 2020. FERC cites the coronavirus (COVID-19) national emergency proclamation issued by President Trump on March 13, 2020; the continued risk to health and safety currently presented by personal contact; and guidance from public health officials on social distancing as good cause for the waivers.