FERC To Tweak Return On Equity Calculation For Pipelines

Law360, New York (September 21, 2012, 3:54 PM EDT) -- The Federal Energy Regulatory Commission is seeking to change the way an oil pipeline's return on equity is calculated by calling on pipelines to report more information about the rate base they charge for transportation and their income tax allowance, the agency said Thursday.

The expanded information will also affect the way the pipelines report their rate of return, a measure of the pipeline's risks and its cost of capital, according to FERC documents, as well as a return on rate base, the agency said in...
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