The Federal Energy Regulatory Commission (FERC) has approved two pipeline amendments that should boost propane shipments to Iowa and the Midwest. While there is not a shortage nationwide, propane availability has been limited due to inadequate infrastructure for transportation. In mid-November, Gov. Kim Reynolds and Senators, Chuck Grassley and Joni Ernst, requested FERC initiate an alternative dispute resolution (ADR) to address the shortage. FERC announced today (Friday) they had revised the pipeline transportation capacity to allow shippers to transfer their allocation to other shippers and receive credit to their allocation history. FERC has also approved a request from TE Enterprise to extend their emergency transportation service to shippers in Illinois. Reynolds says, “FERC’s efforts will build on what we have done to ease regulations for propane transporters at the state level. I appreciate Chairman Chatterjee’s action and attention to this issue on behalf of Iowa farmers, families, and businesses.” FERC indicated it will continue to monitor the Midwest propane situation and the ADR process is proceeding.
