News & Analysis as of

Corporate Taxes Tax Cuts and Jobs Act Federal Energy Regulatory Commission

Morgan Lewis

Jurisdictional Pipelines Must Inform FERC of Rates in Light of Tax Cuts and Jobs Act

Morgan Lewis on

The Federal Energy Regulatory Commission recently issued two orders intended to alleviate concerns that jurisdictional natural gas pipelines may be over-recovering cost-of-service rates due to (1) a reduction of the federal...more

Eversheds Sutherland (US) LLP

FERC orders natural gas pipelines to address federal income tax changes

On July 18, the Federal Energy Regulatory Commission (FERC) issued orders (i) adopting procedures to implement the federal corporate income tax rate reduction in natural gas pipeline rates, and (ii) providing guidance...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

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

Eversheds Sutherland (US) LLP

FERC eliminates tax allowances for MLP pipelines, proposes tax-related rate reviews

On March 15, 2018, the Federal Energy Regulatory Commission (FERC) issued important orders regarding two significant tax-related rate matters affecting interstate oil and natural gas pipelines. The action eliminated tax...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

Latham & Watkins LLP

Tax Cuts & MLPs: FERC Announces Changes Designed to Reduce Cost-Based Rates Charged by Regulated Pipelines

Latham & Watkins LLP on

FERC eliminates tax allowance in MLP pipelines’ cost-based rates and establishes procedures to address income tax changes. Key Points: ..FERC will no longer permit MLPs to recover an income tax allowance in cost-based...more

King & Spalding

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

King & Spalding on

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

Industry Petition Pushes FERC to Require Gas Pipelines and Storage Companies to Immediately Reflect Lower Tax Rates in Shipper...

In light of reduced corporate tax rates as the result of Tax Cuts and Jobs Act of 2017 (Tax Act), a broad coalition of gas industry trade associations and gas producers recently filed a petition with the Federal Energy...more

Davis Wright Tremaine LLP

FERC Faces Complications in Adjusting Gas Pipeline Rates to Reflect Lower Federal Corporate Tax Rates

One of the major recent changes made to the federal tax code as the result of the Tax Cuts and Jobs Act was the reduction in corporate income tax from 35 percent to 21 percent. As soon as the corporate tax cuts took effect at...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

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