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FERC Accepts Two Bids To Move Additional Propane To Iowa

Statewide Iowa — The Federal Energy Regulatory Commission, or FERC, has announced that they have accepted two oil pipeline amendments aimed at moving additional propane to Iowa and the Midwest.

That agreement was reached as a result of Iowa officials’ recent call for an Alternative Dispute Resolution, or ADR, to prioritize pipeline shipments to Iowa.

The shortage of propane in Iowa was brought on, at least in part, by the need to dry grain harvested from the damp fields this fall.

Iowa Senator Chuck Grassley says the shortage of liquid propane in Iowa has affected people from every corner of the state. He says farmers, propane marketers, co-ops and manufacturers all felt pressure from lack of access to liquid propane this harvest season. Grassley says he’s happy to see FERC has taken this issue seriously and addressed the shortage in a timely manner.

Over the last several weeks, Grassley has monitored the situation and been in contact with FERC. He joined Iowa Sen. Joni Ernst in urging FERC to address the Iowa shortage in a letter on Nov. 15th. FERC Chairman Chatterjee then announced on Nov. 19 the ADR process and has now granted two requests following a shortened comment period.

 

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