Oil Pipeline Peer Group Analysis

A producer restructured leaving the oil pipeline system, with both intrastate and interstate routes, as a standalone financial entity. Operating expenses were increasing annually by double digits; transport volumes were flat; the system was nearly fully depreciated and producing negative operating margins. Third party consultants had opined that the pipeline could not justify an increase in rates.

Evaluated the operations and financial performance of the pipeline relative to an industry peer group and developed studies supporting revenue enhancement strategies and rate case filings before federal and state regulatory agencies. Implemented settlement strategies and managed the interstate settlement processes.

Filed an intrastate case, managed the proceeding and testified before the State Regulatory Commission, developing a new methodology to mitigate the risk of the reduced rate base and increase operating margins.