Washington senior counsel John Perkins was quoted in a May 18 Law360 story that describes how the Federal Energy Regulatory Commission’s repealed tax benefit is de-incentivizing the master limited partnership structure for pipeline companies.
The article said Williams Cos. and Enbridge Inc.’s decision to abandon its MLP deal following FERC’s policy shift signals a wider market trend.
“A lot of companies may be making a similar calculus…” Perkins noted in the article.
“If you're an oil pipeline MLP, you're probably concerned about shippers filing complaints saying, 'You're over-recovering now and you need to reduce your rates,’” he added. "I just can't imagine [shippers will] be happy to wait until 2020."