FERC Policy About Tax Allowances for Pass-Through Entities Unsettling

摘要

Utilities regulated on a cost-of-service basis are generally allowed to earn an after-tax rate of return.Thus,a common element of the federal rate-making process is an income tax allowance.Recently,the question of whether to allow an income tax allowance for partnerships and other tax pass-through entities that do not pay income taxes has become a major regulatory issue of interest to regulated utilities and shippers alike.