FERC-501G, (Final Rule in RM18-11) Rate Changes Relating to Federal Corporate Income Tax Rate for Interstate Natural Gas Pipelines

The Tax Cuts and Jobs Act of 2017 reduced tax levels applicable to corporate and individual income, effective January 1, 2018. Pipelines subject to cost of service regulation pursuant to Section 4 of the Natural Gas Act (NGA) and Section 311 of the Natural Gas Policy Act (NGPA) are permitted to include projected income taxes as part of the cost of service, and are permitted the opportunity to recover those costs through their rates. Pipelines are not required to reduce their rates to reflect reduced income taxes. Proposed FERC-501G is required to implement the statutory provisions governed by Section 4 of the NGA and Section 311 of the NGPA that the pipelines’ currently effective rates remain just and reasonable (NGA) or fair and equitable (NGPA).

The latest form for FERC-501G, (Final Rule in RM18-11) Rate Changes Relating to Federal Corporate Income Tax Rate for Interstate Natural Gas Pipelines expires 2021-09-30 and can be found here.

FERC Form No. 501-G [for Interstate Natural Gas Pipelines with Cost-Based Rates]

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