- Chevron (NYSE:CVX), Valero Energy (NYSE:VLO) and Delta Air Lines (NYSE:DAL) have complained to the FERC about fees Colonial Pipeline charges to ship gasoline, diesel and jet fuel over its vast fuel network.
- Saying Colonial’s fees “greatly exceed just and reasonable levels,” the complaint alleges Colonial overcharged the companies by more than $60M combined and is potentially monopolizing fuel delivery into the New York region.
- Other companies such as Murphy Oil (NYSE:MUR) have lodged complaints with FERC against Colonial in the past two years, but the latest action is the largest threat to the operator’s current rate structure and could lead to the first regulatory re-examination of Colonial Pipeline’s rates in nearly 20 years.
- Colonial is the largest U.S. refined products system, and is owned by Koch Industries, Royal Dutch Shell (LON:RDSa) (RDS.A, RDS.B) and others.
- Now read: Chevron: Strong Spot Pricing For Asia LNG A Bullish Catalyst
Original article