The rates pipelines charge for interstate transportation of crude oil and petroleum product shipments of their customers are regulated by the U.S. Federal Energy Regulatory Commission (FERC). Oil pipelines are not public utilities or natural monopolies, as they operate in more competitive, dynamic markets.  Therefore, utility-type cost-of-service ratemaking is rarely used, as competitive pressures help to discipline oil pipeline rates.  In the Energy Policy Act of 1992, Congress mandated that oil pipelines be subject to a “simplified and generally applicable” ratemaking methodology, which led to FERC’s implementation of an oil pipeline rate index used by most pipelines.  Many oil pipelines also charge market-based rates and rates set through negotiations with their customers.