Petroleum Pipelines and California

The CPUC regulates the transportation rates and terms of service of pipeline companies that transport petroleum products owned by other companies.  The CPUC does not regulate the price of the petroleum product itself, and does not have safety jurisdiction over petroleum pipelines.

While the CPUC has regulatory jurisdiction over the rates offered by petroleum pipeline companies, if a pipeline company can demonstrate that competitive market alternatives exist to its transportation, that company may be authorized to offer "market-based" rates.  Absent that showing, the CPUC determines the rates of petroleum pipelines based on the cost of service.  Petroleum pipeline companies may request rate changes or changes in the terms of service either via an advice letter filing or by an application.  There is no set required time period between advice letter or application rate changes.