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Expert Analysis

How FERC's July Order Affects Gas Pipelines

By J. Paul Forrester (August 27, 2018, 1:22 PM EDT) -- On July 18, 2018, the U.S. Federal Energy Regulatory Commission adopted Order No. 849 to force a review of cost-based rates and to implement its current policy on the treatment of income taxes. The order includes procedures for determining which jurisdictional natural gas pipelines may be collecting unjust and unreasonable cost-based rates[1] in light of the income tax reductions provided by the Tax Cuts and Jobs Act[2] and the revised policy and precedent concerning income tax allowances, or ITAs, to address the potential double recovery issue identified by United Airlines Inc. v. FERC.[3]...

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