News & Analysis as of

United Airlines Federal Energy Regulatory Commission

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

Akin Gump Strauss Hauer & Feld LLP

FERC Seeking Comment on Recovery of Income Tax Costs by Jurisdictional Natural Gas and Oil Pipelines and Electric Utilities

The Federal Energy Regulatory Commission (FERC or the “Commission”) announced in December that it is opening a new inquiry and seeking comments regarding its current policies with respect to the recovery of income tax costs...more

Eversheds Sutherland (US) LLP

FERC Seeks Comments on Double Recovery Resulting from Current Income Tax Allowance and Rate of Return Policies

On December 15, 2016, the Federal Energy Regulatory Commission (FERC) issued a Notice of Inquiry (NOI) seeking comments on how to address any potential double recovery that may result from the agency’s current income tax...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

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

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

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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