Enbridge Energy Partners Adjusts 2018 DCF Guidance On Revised FERC Policy

(RTTNews) - Enbridge Energy Partners, L.P. (EEP) provided its preliminary assessment of the potential impacts of the Federal Energy Regulatory Commission's recent policy change with respect to the recovery of income tax amounts included in the cost of service rates of pipelines within a master limited partnership. Based on the preliminary analysis and estimates, the company adjusted its 2018 DCF guidance range to $650 million - $700 million from $720 million - $770 million and 2018 total distribution coverage to approximately 1.0x from approximately 1.15x.

On March 15, 2018, FERC changed its long-standing policy on the treatment of income tax amounts included in the rates of pipelines and other entities subject to cost of service rate regulation within an MLP. In its order PL17-1-000, FERC revised a policy in-place since 2005 to no longer permit entities organized as master limited partnerships (MLP's) to recover an income tax allowance in their cost of service rates. EEP intends to ask for rehearing of the policy change at the FERC.