News & Analysis as of

Federal Energy Regulatory Commission Income Taxes

Troutman Pepper

FERC Chief Accountant Proposes to Modify Transferability of Income Tax Credits

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On September 12, 2024, FERC’s Chief Accountant issued a notice of proposed accounting release (“NOPAR”) to modify the transferability of income tax credits (“ITCs”) related to certain energy projects under the Inflation...more

Akin Gump Strauss Hauer & Feld LLP

DC Circuit Decision Opens Doors to Rate Increases by FERC-Regulated Oil, Liquids and Refined Products Pipelines

Interstate oil, liquid and refined products pipelines regulated by the Federal Energy Regulatory Commission (FERC) will soon be able to raise their transportation rates (provided they were set using FERC’s popular Index rate...more

Eversheds Sutherland (US) LLP

DC Circuit denies recovery of income tax allowance by oil pipeline partnership

On July 31, 2020, the US Court of Appeals for the DC Circuit issued a per curiam opinion in SFPP L.P. v. Federal Energy Regulatory Commission, et al. The DC Circuit denied the recovery of an income tax allowance by SFPP L.P....more

Blank Rome LLP

FERC Reaffirms Its Final Rule on Rate Changes Relating to Federal Income Tax Rates for Natural Gas Pipelines

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The Commission’s recent order upholds the Form No. 501-G filing requirement, which was designed to determine whether pipelines are over-recovering on their cost of service in light of recent federal income tax rate and policy...more

Morgan Lewis

FERC Continues to Respond to Dozens of Pipeline Company Tax Filings

Morgan Lewis on

Rate reductions across the natural gas sector could materialize as a result of the Federal Energy Regulatory Commission’s ongoing investigation of benefits gained by the recent reduction in the federal corporate income tax...more

Alston & Bird

FERC Addresses ADIT in Light of Decrease to Federal Corporate Income Tax Rate

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Thanks to the Tax Cuts and Jobs Act, rate-regulated companies find themselves with fewer accumulated deferred income tax (ADIT) liabilities and assets on their books. Our Energy Group discusses the Federal Energy Regulatory...more

McGuireWoods LLP

FERC Clarifies Process for Evaluating Gas Pipeline Rates in Light of Income Tax Cuts

McGuireWoods LLP on

July 26, 2018 On July 18, in two companion orders, the Federal Energy Regulatory Commission (FERC): (1) affirmed the Revised Policy Statement on Treatment of Income Taxes, and (2) provided guidance regarding the treatment of...more

Orrick, Herrington & Sutcliffe LLP

FERC Issues Final Rule Regarding Income Tax Allowances in Rate Setting for Pipelines: MLPs Not Precluded from Tax Allowance

On Wednesday, July 18, 2018, the Federal Energy Regulatory Commission (“FERC” or “Commission”) issued a final rule regarding the application of income tax rate reductions in setting natural gas pipeline rates.  ...more

King & Spalding

Energy Newsletter - April 2018

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FERC Initiates Sweeping Reform of Ratemaking Treatment for Income Taxes - On March 15, 2018, the Federal Energy Regulatory Commission (FERC) released a series of issuances intended to address the need to reflect the lower...more

King & Spalding

FERC Initiates Sweeping Reform of Ratemaking Treatment for Income Taxes

King & Spalding on

On March 15, 2018, the Federal Energy Regulatory Commission (FERC) released a series of issuances intended to address the need to reflect the lower maximum corporate income tax rate adopted under the Tax Cuts and Jobs Act of...more

Jones Day

FERC Announces Initiatives Regarding Income Tax Cost Recovery for Pipelines and Utilities

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The Situation: The United Airlines, Inc. v. FERC decision and the reduction of corporate income tax rate in the Tax Cut and Jobs Act significantly lowered the tax costs able to be included in the jurisdictional rates of...more

McDermott Will & Emery

FERC Announces Tax Reform Actions and Eliminates Income Tax Allowance for Master Limited Partnerships

McDermott Will & Emery on

FERC announced actions in response to the 2017 tax reform legislation and a revised income tax policy, which eliminates the income tax allowance for Master Limited Partnerships. Regulated entities should ensure that they...more

Orrick, Herrington & Sutcliffe LLP

FERC Abandons Tax Allowance in MLP Pipeline Rate Setting and Signals Changes Due to Tax Act Rate Drop

On Thursday, March 15, 2018, the Federal Energy Regulatory Commission (“FERC” or “Commission”) issued a series of orders and notices to address changing the treatment of income tax costs in rate setting for oil and natural...more

Alston & Bird

FERC Acts to Address Decrease in Federal Corporate Income Tax Rate

Alston & Bird on

The effects of the Tax Cuts and Jobs Act are rippling through the energy industry. Our Energy Group explores how the Federal Energy Regulatory Commission considers accounting for the new corporate tax rate and what it could...more

Cadwalader, Wickersham & Taft LLP

FERC Addresses Effects of Tax Cuts on Jurisdictional Rates and Disallows Income Tax Component in MLP-Owned Partnership Pipeline...

On March 15, 2018, the Federal Energy Regulatory Commission (“FERC”) issued an order on remand disallowing an income tax component in cost-of-service rates charged by an interstate oil pipeline owned by a master limited...more

King & Spalding

Energy Newsletter - February 2018

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Developing an FSRU Project in New Markets: 10 Key Considerations - As at 1 July 2017, the total number of operational floating storage and regasification units (“FSRUs”) globally stood at 26, with 23 operating as terminals...more

King & Spalding

FERC Comes Under Pressure to Reduce Pipeline and Other Regulated Rates to Reflect Changes in the Corporate Income Tax Rate

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Late last year, Congress passed the Tax Cuts and Jobs Act of 2017, which the President signed into law on December 22, 2017. A central feature of the Act is the reduction of the maximum corporate income tax rate from 35% to...more

Davis Wright Tremaine LLP

2018 Tax Law to Reduce Pipeline Expansion Recourse Rates

FERC staff has asked gas pipelines with pending expansion applications how 2018 tax law changes will impact their proposed project’s cost of service and the project’s proposed incremental rates. FERC has imposed a quick,...more

Eversheds Sutherland (US) LLP

D.C. Circuit Questions FERC’s Policy Statement on Income Tax Allowances

On July 1, the U.S. Court of Appeals for the District of Columbia Circuit issued its opinion in United Airlines, Inc., et al. v. FERC. This oil pipeline rate case appeal involves SFPP, L.P., a pipeline organized as a limited...more

Robinson & Cole LLP

Green Tax Incentive Compendium - July 2016

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Federal Tax Incentives for Renewable Energy and Energy Efficiency - A. GENERAL DESCRIPTION. The Federal Internal Revenue Code provides a business income tax credit in the amount of $0.023 (2015) per kilowatt hour of...more

Cadwalader, Wickersham & Taft LLP

D.C. Circuit Reopens Controversy Concerning Regulated Master Limited Partnership Taxation

On Friday, July 1, 2016, a panel of the United States Court of Appeals for the District of Columbia Circuit reopened the issue of whether pipelines organized as partnerships can claim a tax allowance for ratemaking purposes...more

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