Lakehead Pipe Line Appeals FERC Ruling
The Federal Energy Regulatory Commission (FERC) has refused to rehear or modify a June 15, 1995, rate order (Opinion 397) that denied Lakehead Pipe Line Partners, L.P. any income-tax allowance related to "curative allocations" under section 704(c) of the Internal Revenue Code that increase the general partner's taxable income beyond his or her proportion of company ownership.
The ruling (Opinion 397-A) affirms Lakehead's entitlement to a tax allowance based on the income attributable to corporate partners, but imposes a limit.