PART 342—OIL PIPELINE RATE METHODOLOGIES AND PROCEDURES Authority: 5 U.S.C. 571-83; 42 U.S.C. 7101-7532; 49 U.S.C. 60502; 49 App. U.S.C. 1-85. Source: Order 561, 58 FR 58779, Nov. 4, 1993, unless otherwise noted. § 342.0 Applicability. (a) Except as provided in paragraph (b) of this section, rate changes by oil pipelines shall be governed by this part. (b) Exception for the Trans-Alaska Pipeline. et seq. § 342.1 General rule. Each carrier subject to the jurisdiction of the Commission under the Interstate Commerce Act: (a) Must establish its initial rates subject to such Act pursuant to § 342.2; and (b) Must make any change in existing rates pursuant to § 342.3 or § 342.4, whichever is applicable, unless directed otherwise by the Commission. § 342.2 Establishing initial rates. A carrier must justify an initial rate for new service by: (a) Filing cost, revenue, and throughput data supporting such rate as required by part 346 of this chapter; or (b) Filing a sworn affidavit that the rate is agreed to by at least one non-affiliated person who intends to use the service in question, provided [Order 561, 58 FR 58779, Nov. 4, 1993, as amended at 59 FR 59146, Nov. 16, 1994] § 342.3 Indexing. (a) Rate changes. (b) Information required to be filed with rate changes. (c) Index year. (d) Derivation of the ceiling level. (2) The index published by the Commission will be based on the change in the final Producer Price Index for Finished Goods (PPI-FG), seasonally adjusted, as published by the U.S. Department of Labor, Bureau of Labor Statistics, for the two calendar years immediately preceding the index year. The index will be calculated by dividing the PPI-FG for the calendar year immediately preceding the index year, by the previous calendar year's PPI-FG. (3) A carrier must compute the ceiling level each index year without regard to the actual rates filed pursuant to this section. All carriers must round their ceiling levels each index year to the nearest hundredth of a cent. (4) For purposes of computing the ceiling level for the period January 1, 1995 through June 30, 1995, a carrier must use the rate in effect on December 31, 1994 as the previous index year's ceiling level in the computation in paragraph (d)(1) of this section. If the rate in effect on December 31, 1994 is subsequently lowered by Commission order pursuant to the Interstate Commerce Act, the ceiling level based on such rate must be recomputed, in accordance with paragraph (d)(1) of this section, using the rate established by such Commission order in lieu of the rate in effect on December 31, 1994. (5) When an initial rate, or rate changed by a method other than indexing, takes effect during the index year, such rate will constitute the applicable ceiling level for that index year. If such rate is subsequently lowered by Commission order pursuant to the Interstate Commerce Act, the ceiling level based on such rate must be recomputed, in accordance with paragraph (d)(1) of this section, using the rate established by such Commission order as the ceiling level for the index year which includes the effective date of the rate established by such Commission order. (e) Rate decreases. [Order 561, 58 FR 58779, Nov. 4, 1993, as amended by Order 561-A, 59 FR 40256, Aug. 8, 1994; 59 FR 59146, Nov. 16, 1994; Order 606, 64 FR 44405, Aug. 16, 1999; Order 650, 69 FR 53801, Sept. 3, 2004] § 342.4 Other rate changing methodologies. (a) Cost-of-service rates. (b) Market-based rates. (c) Settlement rates. [Order 561, 58 FR 58779, Nov. 4, 1993, as amended at 59 FR 59146, Nov. 16, 1994]