On November 20, 2025, FERC took several steps aimed at finalizing oil pipeline price index levels for the July 1, 2021, to June 30, 2026, time period (“2021-2026 Period”). First, FERC set the oil pipeline index level for the 2021-2026 Period at PP-FG+0.78% (“Initial Index”), consistent with the index level it originally set in December 2020. FERC also issued remedial relief through a rehearing order to applicable oil pipelines for the March 1, 2022, to September 17, 2024, time period in which an index level of PPI-FG-0.21% (“Rehearing Index”) was in effect. The relief ordered by FERC will allow qualifying pipeline to recover amounts they would have otherwise charged under the Initial Index while the Rehearing Index prices were in effect. Finally, FERC withdrew a Supplemental Notice of Proposed Rulemaking (“Supplemental NOPR”) in which FERC sought to proactively set the Rehearing Index as the index level for the remainder of the 2021-2026 Period.

FERC, per the Energy Policy Act of 1992, establishes an oil pipeline index that sets the maximum rate increases that oil pipelines can charge their customers. The oil pipeline level index is reset by FERC every five years. On December 17, 2020, FERC set the oil pipeline index level for the 2021-2026 Period to the Initial Index. On March 1, 2022, on rehearing, FERC set the index level at the Rehearing Index. The United States Court of Appeals for the District of Columbia (“DC Circuit”) vacated FERC’s rehearing order on July 26, 2024, and directed FERC to reinstitute the Initial Index for failing to follow the Administrative Procedure Act. FERC then reinstated the Initial Index on September 17, 2024. Multiple oil pipelines and shipper entities filed for rehearing of FERC’s order reinstating the Initial Index.

In its order on rehearing requests of the reinstatement of the Initial Index, FERC denied requests for rehearing and reinstated the Initial Index. FERC found that reinstating the Rehearing Index would contradict the DC Circuit’s order. Furthermore, FERC found that it already provided a forum for considering the institution of the Rehearing Index through notice and comment procedures. As discussed below, the Commission decided not to modify the index level based on the record in the Supplemental NOPR proceeding. However, FERC ordered remedial relief for the period the Rehearing Request was in effect, allowing pipelines that charged the maximum rates permitted while the Rehearing Index was in effect to recover the full amounts that would have been chargeable if the Initial Index had been in effect during that period.

Separately, in response to the DC Circuit’s decision to vacate FERC’s order setting the Rehearing Index, FERC also issued the Supplemental NOPR seeking to prospectively set the index level at the Rehearing Index for the remainder of the 2021-2026 Period. The Supplemental NOPR also proposed changes to the recalculation of prospective ceiling levels, the Income Tax Policy Change, statistical data trimming, and the appropriate source of 2014 Page 700 data.

On November 20, 2025, FERC also withdrew the Supplemental NOPR after finding that maintaining the Initial Index for the remainder of the 2021-2026 Period was the best course of action. FERC reasoned that modifying the index level for a fourth time within the 2021-2026 Period would extend regulatory uncertainty. FERC also concluded that modifying the index level would bring limited benefits.

The order on rehearing, issued in Docket Nos. RM93-11-003, RM20-14-003, and RM20-14-004, is available here. The order withdrawing the Supplemental NOPR, issued in Docket No. RM25-2-000, is available here.