Constructing a Rate Filing - (market based or cost based)

Pipelines may choose one of two methods to establish cost-based rates:

1. State Rate Election (b)(1) – § 284.123(b)(1) of the Commission's regulations
2. Cost of Service (b)(2) – § 284.123(b)(2) of the Commission's regulations

Pipelines may file to request Commission approval of market based rates upon show a lack of market power