FERC’s MLP tax allowance policy faces appeals court challenge

摘要

Enable Mississippi River Transmission has headed to federal appealsrncourt in an attempt to challenge FERC’s major tax policy shift affectingrninterstate pipelines organized as master limited partnerships.rnThe commission on July 18 released a final policy limitingrncircumstances in which pipeline companies organized as master limitedrnpartnerships could recover tax allowances in cost-of-service rates.rnThe policy shift has the potential to require some companies tornlower their rates to come into compliance, and FERC’s initial proposalrnMarch 15 sent some MLP stocks tumbling. The Alerian Master LimitedrnPartnership Index, a bellwether for midstream infrastructurerninvestments, had already dropped over 5% in 2018 before fallingrnanother 4.6% on March 15. It has since recovered to pre-March levels.