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(Bloomberg) — The US Department of Transportation declared a regional emergency as cold weather and a November electrical outage at a Pennsylvania industrial complex disrupt heating-fuel markets.
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The regional emergency declared on Dec. 12 waives hours-of-service regulations for trucks transporting heating fuels to New York, New Jersey, Delaware and Pennsylvania. The governors of New Jersey and Pennsylvania already had waived state-level trucking restrictions.
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The federal declaration will remain in effect until the end of the emergency or midnight Dec. 26.
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The issue stems from a Nov. 19 electrical incident in a transformer at Energy Transfer LP’s Marcus Hook terminal in Pennsylvania. The outage disabled the facilities propane truck-loading rack for three days and led the company to declare force majeure, according to a statement from the National Propane Gas Association. Energy Transfer customers were placed on allocation and are receiving 70% of their loads, the association said.
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The terminal is loading propane onto trucks directly from a pipeline, causing wait times to increase.
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Energy Transfer didn’t respond to multiple requests for comment.
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The US Energy Information Administration on Monday revised its Winter Fuels Outlook and now expects a colder winter and higher fuel prices than originally estimated when first published in October.
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The agency expects this winter to be as cold as the prior year, after previously forecasting a warmer one. It also now expects higher retails prices for natural gas and propane than previously forecast.
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(Updates with details on winter forecasts in final two paragraphs and adds chart.)
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