Market-based ratemaking authority represents a lighter-handed form of regulation that allows companies to set their rates without reference to either an index or a traditional cost-of-service methodology. FERC requires that any oil pipeline company wishing to charge market-based rates demonstrate through detailed quantitative analyses that it lacks the market power to effectively engage in monopolistic pricing.

Clients seeking market-based rates enjoy the advantage of REG’s unique focus on technical expertise in economics and real-world experience with regulatory issues. REG assists oil pipeline companies in preparing market power analyses and working with FERC staff to gain their support for the process.