Panhandle Eastern Pipe Line Co. v. Federal Power Commission

BAZELON, Chief Judge.

In a rate proceeding under § 4(e) of the Natural Gas Act,1 the Federal Power Commission allowed Panhandle Eastern Pipe Line Company an over-all return of 6.25 per cent on its total rate base, reflecting a rate of return of 1.5 percent on $11,000,000 of investment from its reserves for deferred income taxes. In this petition for review, Panhandle’s only complaint relates to the rate allowed on the reserves.

*661These reserves are generated by Panhandle’s use of § 167 of the Internal Revenue Code2 which authorizes taxpayers to write off depreciable property more quickly than is…