Energy Transfer Partners LP (NYSE:ETP) reported that it is aware of changes the Federal Energy Regulatory Commission is proposing to its 2005 – Policy Statement meant for Recovery of Income Tax Costs. These revisions if adopted post a public comment duration, would no longer permit interstate pipelines held by MLPs to recuperate an income tax allowance in the service cost.
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Energy Transfer reported that these changes are not projected to have a material effect on company’s cash flow and earnings. Several of ETP’s prices are defined following negotiated rate settlements or rate arrangements that it considers would not be contingent to adjustment, or would be confined in terms of adjustment. Besides, several of its existing transportation services are offered at discounted prices that are below maximum tariff prices, many of which it considers would not be influenced by a revision in the maximum tariff rate.
Energy Transfer is a master limited partnership that operates and owns one of the most diversified and largest portfolios of energy assets in the U.S. Strategically positioned in the major United States production basins, ETP operates and owns a geographically diverse pipeline of complementary natural gas midstream, interstate and intrastate storage and transportation assets; crude oil, NGL and refined product transportation as well as terminalling assets; and various marketing and acquisition assets. ETP’s general associate is held by Energy Transfer Equity, L.P.
Energy Transfer Equity marks as a MLP that has the general partner and entire incentive distribution rights of Energy Transfer Partners and Sunoco LP. On a consolidated basis, its family of firms operates and owns a diverse portfolio of natural gas liquids, natural gas, refined products and crude oil assets, as well as wholesale and retail motor fuel businesses and LNG terminalling. More details are available on the website of Energy Transfer Equity.
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