RCA lets seven parties join rate case

State regulators have let seven parties join a case examining transportation rates on the trans-Alaska oil pipeline.

On Nov. 25, the Regulatory Commission of Alaska approved requests from three refiners, two pipeline owners and the State of Alaska to become parties to the case. On Dec. 2, the regulatory agency approved a request from a third owner of the pipeline.

The case will consider a request from ConocoPhillips to increase its rates for shipping oil through the pipeline to markets within the state. The company is arguing that declining volumes on the pipeline over the past six years no longer yield the appropriate return.

ConocoPhillips is asking to increase in-state rates by around 56 percent. At the start of November, the RCA approved the increase on an interim basis, subject to refund.

In addition to the state, the new parties to the case include Tesoro, Flint Hills Resources and PetroStar, the three companies that own refineries in Alaska, as well as ExxonMobil Pipeline Co., Unocal Pipeline Co. and BP Pipelines, three of the five owners of the pipeline. The remaining owner is Koch Alaska Pipeline Co.

—Eric Lidji