FERC Questions Recovery of Income Tax Costs by Partnerships and Other Pass-Through Entities

On December 15, 2016, FERC issued a Notice of Inquiry (“NOI”) requesting comments regarding how FERC can ensure that partnerships that own and operate jurisdictional pipelines or public utilities, or similar pass-through entities (collectively, “Partnerships”), are not receiving “a double recovery of [income] taxes” based on FERC’s current income tax allowance (“ITA”) and return on equity (“ROE”) policies. FERC’s NOI comes in response to United Airlines, Inc. v. FERC, 827 F.3d 122 (2016), where the…