High Impact FERC Meeting, join LawIQ Insights Call Tomorrow @ 10am EDT

Please join us tomorrow at 10 am EDT to hear our insights on today's FERC meeting addressing the issues highlighted in the table below. Gary Kruse, LawIQ's Director of Pipeline Markets, will host the call and take your questions.

This link will take you to the conference call: https://global.gotomeeting.com/join/82728382 . If you need additional access via a direct (non computer based) phone connection, please email us at info@lawiq.com.

Based on our attendance at the FERC meeting today and review of the recently issued press releases, the FERC made the following material decisions, which we will discuss tomorrow. (Note: FERC has not yet issued the actual orders referenced in today's open meeting and press releases.)

Matter/Issue	Impact On	FERC Ruling
Interstate and Intrastate Natural Gas Pipelines; Rate Changes Relating to Federal Income Tax Rate (RM18-11)	Natural Gas Pipelines	Issued a proposed rule that would implement a process similar to what we anticipated namely first a filing by the pipeline that is an abbreviated cost and revenue report along with calculation of the pipeline's ROE before and after adjustments related to tax cut and removal of the tax allowance for MLPs.
Inquiry Regarding the Commission's Policy for Recovery of Income Tax Costs (PL17-1-000)	All MLPs that own electric transmission, natural gas pipelines or oil pipelines that currently are including a tax allowance in their tariff rates	FERC determined that all MLPs, but not other pass-through entities, will no longer be allowed to include a tax allowance in their rates. However, the method for implementation will differ between oil and gas pipelines. The gas pipeline adjustment will be included in the process described in the cell above and for oil pipelines FERC will adjust the index increase when it reviews the index in 2020. Until then, oil pipelines will presumably be allowed to continue to increase rates in accordance with the indexing method.
Dominion Energy Overthrust Pipeline, LLC (RP18-442) and ONEOK's Midwestern Gas Transmission Company (RP18-441)	Both pipelines and their respective shippers	As we expected, FERC initiated two investigations under section 5 of the Natural Gas Act to determine whether these pipelines' rates are just and reasonable.
Order Reinstating Certificate for Sabal Trail, Florida Southeast Connection and Transco (Hillabee), with dissenting opinions from Commissioners LaFleur and Glick	Specific Pipelines and other projects pending environmental review	No impact on the operations of the pipelines or construction of the remaining portions of the project, but the two dissenting opinions offer a window into Certificate Policy Statement changes.