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Exxon gets TAPS tariff extension
State regulators are extending a temporary rate increase that ExxonMobil can charge users on the trans-Alaska oil pipeline while they continue to deliberate on a larger case.
In 2011, the Regulatory Commission of Alaska allowed Exxon to increase the rate it charges shippers to move oil to in-state markets, the third just increase in three years.
Although the temporary period usually lasts six months, the RCA can extend the timeline to accommodate complex proceedings. The RCA previously extended the rate by one year and with the current extension Exxon can collect the higher rates for another year.
The matter is one of 12 similar cases in a consolidated docket currently under review in concurrent hearings between the RCA and the Federal Energy Regulatory Commission.
The RCA is also studying four additional cases outside the docket, including another increase Exxon recently requested on top of the one it is now getting extended.
All the increases are subject to refund if the RCA finds them unjust.
—Eric Lidji
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