Enterprise Products says FERC policy change to have no material impact
Enterprise Products Partners announced that revisions announced today by the Federal Energy Regulatory Commission, or FERC, with regard to its 2005 policy for recovery of income taxes are not expected to have a material impact to the earnings and cash flow of Enterprise. The FERC announced today that it would revise its 2005 Policy Statement for Recovery of Income Tax costs so that it no longer will allow interstate pipelines owned by master limited partnerships to recover an income tax allowance in the cost of service. "We do not expect the revisions to the FERC's policy on the recovery of income taxes to materially impact our earnings and cash flow. The cost-based tariff rates that are in effect for all of our interstate pipelines are based on a cost of service for those pipelines whereby the disallowance for the recovery of an income tax allowance will not have a material effect, if any, to the posted tariffs," said A.J. "Jim" Teague, CEO of Enterprise's general partner.