FERC Price Cap For Exxon Pipeline Overturned By DC Circ.

Law360, New York (April 17, 2012, 3:45 PM EDT) -- The D.C. Circuit ruled Tuesday that the U.S. Federal Energy Regulatory Commission was wrong to cap the prices Exxon Mobil Corp. could charge for oil transported by its Pegasus pipeline, which runs from Illinois to Texas.

The appeals panel vacated FERC’s finding that Mobil Pipe Line Co.’s 858-mile Pegasus line possessed “market power,” defined as “the ability profitably to maintain prices above competitive levels for a significant period of time,” and could therefore not charge market prices for its oil.

“We conclude that the commission’s decision...
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