News & Analysis as of

Pass-Through Entities Federal Energy Regulatory Commission

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

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

Husch Blackwell LLP

FERC Acts On Income Tax Allowance And Implements The Tax Cuts And Jobs Act

Husch Blackwell LLP on

The Federal Energy Regulatory Commission (FERC) took swift action to respond to the recent United Airlines v. FERC decision regarding income tax allowances, as well as to implement changes stemming from the Tax Cuts and Jobs...more

Morgan Lewis

Natural Gas Transportation: 2018 FERC Rate Cases Are Expected to Raise Novel Issues

Morgan Lewis on

Over a half dozen natural gas rate proceedings are expected to be initiated in 2018, many of which will raise issues such as the impact of the new tax laws on rates and the inclusion of a pipeline modernization tracker in...more

Eversheds Sutherland (US) LLP

Transmission Partnership Not Deemed Includible in Consolidated Return and Allowed To Collect Income Tax Allowance in its Rates

On January 6, 2017, Texas utility companies organized as pass-through entities, including partnerships, received welcome news regarding their ability (1) not to elect to be treated as a corporation eligible to be included in...more

Morgan Lewis

DC Circuit Ruling Threatens to Topple FERC Tax Allowance Policy

Morgan Lewis on

Court rules that FERC policy permitting a tax allowance for pass-through entities may unjustifiably permit “double-recovery” of tax expense. On July 1, the US Court of Appeals for the District of Columbia Circuit issued...more

Cozen O'Connor

DC Circuit Decision Likely to Reignite FERC Debate Over Tax Allowance for Pass-through Entities

Cozen O'Connor on

The recent decision by the U.S. Court of Appeals for the District of Columbia Circuit in United Airlines Inc., et al., v. Federal Energy Regulatory, Case No. 11-1479, July 1, 2016 (United Airlines) will likely reignite a...more

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