FERC Starts Process to Address Liquid Propane Shortage in Iowa
Nov 20, 2019
WASHINGTON – Following calls from Sen. Chuck Grassley (R-Iowa), Sen. Joni Ernst (R-Iowa) and Gov. Kim Reynolds, the Federal Energy Regulatory Commission (FERC) has announced it will begin an alternative dispute resolution (ADR) process to address the liquid propane shortage impacting the Midwest. The ADR will bring together pipeline companies, shippers and their representatives to explore actions FERC and the industry can take to alleviate the shortage, which has been mostly due to infrastructure and distribution issues. There is not currently a nationwide shortage of propane.
“I’ve heard from farmers, propane marketers, co-ops and manufacturers in Iowa about how the lack of access to propane is affecting operations and threatening their livelihoods. This announcement is a good first step and I’m glad to see that FERC is taking this issue seriously. I’ll continue to work with my colleagues and coordinate with state officials to keep a close watch as this process moves forward,” Grassley said.
Grassley’s and Ernst’s letter to FERC Chairman Neil Chatterjee can be found HERE.