SFPP AND SHIPPERS REQUEST REHEARING OF FERC OPINION 511 - TREATMENT OF TAX ALLOWANCES AND MASTER LIMITED PARTNERSHIPS HAVE UPSET THE COMMISSION'S INCOME TAX ALLOWANCE POLICY STATEMENT

摘要

SFPP, LP (IS08-390) and shippers requested rehearing of FERC's 2/17/11 order (Order No. 511) that reviewed and largely upheld the 12/2/09 Initial Decision regarding higher rates on the West Line of SFPP. The Commission's order generally affirmed the Administrative Law Judge's (ALJ's) conclusions regarding good-will, the allocation of costs among SFPP's affiliates and between SFPP's jurisdictional and non-jurisdictional services, and most capital structure, cost of capital and income tax allowance issues. The order modified the ALJ's findings regarding throughput, purchase accounting adjustments, the allocation of litigation costs, and some rate base and secondary cost-of-service issues. SFPP must file an enhanced overhead cost recovery analysis, revised tariffs, and a report on estimated refunds. The proposed cost-of-service rates will result in a rate increase for all shipments on SFPP's West Line between Watson Station, Los Angeles County, California and Phoenix, Arizona.