ExxonMobil, Southwest Air Lose Challenge to FERC Pipeline Order

ExxonMobil, Southwest Airlines and other oil shippers failed to convince the D.C. Circuit to reconsider whether FERC properly approved eliminating an oil pipeline operator’s Accumulated Deferred Income Tax balance retroactive to 1992, according to an order by the court Thursday.

The shippers argued the U.S. District Court for the District of Columbia failed to address whether making the decision retroactive was lawful when it said the Federal Regulatory Energy Commission could allow SFPP LP to eliminate the balance from its cost of service.

The decision enabled SFPP to increase its prospective rates beginning in 2008 and recoup some of ...