Pipeline, Petroleum Shippers Lose Challenges to FERC Orders

July 31, 2020, 6:34 PM

The Federal Energy Regulatory Commission didn’t abuse its discretion or go against precedent when it rejected an income tax allowance to oil pipeline SFPP LP, the D.C. Circuit ruled Friday in denying the pipeline’s petition for review.

The agency also acted reasonably when it decided it couldn’t refund or exclude SFPP’s accumulated deferred income taxes (ADIT) balance from the pipeline’s rate base, the U.S. Court of Appeals for the District of Columbia said in a per curiam opinion.

FERC’s decisions came after SFPP filed to increase its tariffs. Granting the pipeline an allowance for its investor-level income taxes and a ...

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