Document GmvVK9R2rzLB6dLZ6BG748gyV

Message From: Sent: To: Subject: Troutman Sanders LLP [Communications@troutman.com] 7/25/2018 3:17:40 PM Wehrum, Bill [/o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=33d96ae800cf43a3911d94a7130b6c41-Wehrum, Wil] Washington Energy Report July 25, 2018 Washington Energy Report FEFIC Affirm s Policy on Income Tax Allowance ft s Pipelines By J a m o n d Perry & Thomas P eV ita on July 24, 2018 " POSTED IN NATURAL GAS. RULEMAKINGS On July 18, 2018, FERC affirmed its Revised Policy Statement on Treatment of Income Taxes ("Revised Policy Statement"), where FERC stated that it will generally not permit master-limited partnerships ("MLPs") to recover income tax allowance in their cost of service. In doing so, FERC dismissed requests for clarification and rehearing of its Revised Policy Statement, reiterating that tax pass-through entities (including MLPs) that recover an income tax allowance in addition to a return on equity ("ROE") based on the discounted cash flow ("DCF") methodology double recover investors' tax costs. FERC did however explain that while pass-through entities may eliminate previously-accumulated sums of accumulated deferred income tax ("ADIT") from cost of service, they did not need to refund those ADIT balances to ratepayers. Read Nlore Finalizes Procedures fo r Evaluating Incorni i is Pipe Tes Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 The Washington Energy Report is a weekly pubiication written by the Troutman Sanders Federal Energy Regulatory Commission ("FERC") practice that monitors and reports on significant developments in FERC and energy-related matters around the country. Quick Links W ashinglonjjine^ Troutman Sanders Contacts 202. 274.2926 StuartC apian 212. 704.6060 Email Arnie .Colby 202. 274.2922 Ernas ED 002061 00181604-00001 2018 POSTED IN N. On July 18, 2018, FERC issued Order No. 849, finalizing its procedures and regulations regarding the effect of reduced corporate income taxes on certain natural gas pipelines and their rates at FERC. Notably, Order No. 849 requires interstate natural gas pipelines to submit "FERC Form No. 501-G," an abbreviated cost and revenue study designed to illustrate the effect of reduced corporate tax rates, which FERC might then use to determine whether the pipeline's rates may be unjust and unreasonable under the Natural Gas Act ("NGA"). Read IVIore Propose onus filiations Governing Interlocking Positions By Jariiofid Perry & Thomas DeVito on July 24, ............................... POSTED IN RULEMAKINGS On July 19, 2018, the Federal Energy Regulatory Commission ("FERC" or the "Commission") issued a Notice of Proposed Rulemaking ("NOPR") that would update FERC's regulations regarding interlocking positions. According to the NOPR, the proposed revisions to parts 45 and 46 of the Commission's regulations aim to "reflect statutory changes to the circumstances in which an applicant who would otherwise require Commission authorization to hold an interlocking position need not do so. Read more 202. 274.2814 Anne Darey 202. 274.2870 202. 274.2886 202. 662.2181 Brandon_Marzo 404. 885.3683 Email Ehytoi.n.to. 202. 274.2850 Email Glihoh..Sito[i 202. 274.2966 503. 290.2310 | SUBSCRIBE i Accepts and Sets fo r Hearing Cost- of~Sen snsation Agreement By Elizabeth McCormick & Christopher Z e riH o rU ^ ....................... POSTED IN GENERATION, RELIABILITY Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00181604-00002 On July 13, 2018, pursuant to section 205 of the Federal Power Act ("FRA"), FERC accepted and set for hearing a cost-of-service agreement between Constellation Mystic Power, LLC ("Mystic"), Exelon Generation Company, LLC ("Exelon"), and ISO New England Inc. ("ISO-NE") providing cost-of-service compensation to Mystic for continued operation of two gas-fired generating units ("Mystic 8 and 9") to ensure fuel security in New England. Commissioners Powelson and Click dissented. Read more RoytOliDmom f W in 0 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00181604-00003