In accordance
with 5 CFR 1320, the information collection is approved for three
years.
Inventory as of this Action
Requested
Previously Approved
09/30/2021
36 Months From Approved
222
0
0
2,433
0
0
0
0
0
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 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 unless and until the
Commission finds that a particular pipeline is over-recovering.
FERC-501-G 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). Contemporaneous with the
proposed rule, the Commission responded to a remand from the D.C.
Circuit. In United Airlines, the D.C. Circuit held that the
Commission failed to demonstrate that allowing SFPP, L.P., a master
limited partnership (MLP) owned pipeline, to recover both an income
tax allowance and the discounted cash flow methodology rate of
return does not result in a double recovery of investors’ tax
costs. In response to that remand order, the Commission issued a
Revised Policy Statement and Opinion No. 511-C, wherein the
Commission found that permitting an income tax allowance for
pass-through entities may no longer be appropriate. FERC Form No.
501-G proposed to collect information as to whether the pipeline
was a pass-through entity.
$416,981
No
No
No
No
No
No
Uncollected
Keith Pierce 2025028525
keith.pierce@ferc.gov
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
Changes to FERC Form 501-G.docx
07-19-18-chatterjeeRM18-11.pdf
NGPA section 311 and Hinshaw Pipelines with Cost-Based Rates