Trump Tax Revamp Threatens to Make Gas Pipelines Pay $18.5 Billion
- Overhaul comes after court ruling involving United Airlines
- Enbridge, Williams awaiting U.S. decision on payout, timing
Photographer: Daniel Acker/Bloomberg
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Pipeline owners led by Enbridge Inc. and Williams Cos. could be forced to refund as much as $18.5 billion to drillers, utilities and even United Airlines Inc. for upfront payments they charged customers before new U.S. tax rules cut the corporate rate.
Natural gas conduits include the cost of future tax payments in customer fees. Because the Trump administration lowered the tax rate 21 percent from 35 percent earlier this year, pipelines have effectively been overcharging customers, according to East Daley Capital Management Inc. The sides now await a U.S. ruling on whether refunds must be made, and how quickly.