NEW YORK, April 5 (Reuters) – Shippers on Kinder Morgan’s SFPP fuel pipeline system, including Valero and HollyFrontier, have complained to U.S. regulators that rate increases to ship on the system were unlawful, costing an estimated $5.3 million in past and future damages.
Last May, SFPP, which operates refined-product lines in the U.S. southwest and west coast, filed index-based rate increases on several of its pipeline segments. The shippers said the increases were unjust because SFPP was over-recovering its cost-of-service at the time of the increases, according to the complaint filed late Thursday with the U.S. Federal Energy Regulatory Commission.
Kinder Morgan is developing a response to the complaint and will file it with FERC by May 6, spokeswoman Katherine Hill said.
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