In light of current FERC rate making policies, we require an owner of our units to be an eligible holder.
An owner is an eligible holder unless the General Partner determines that their U.S. federal income tax status has or is reasonably likely to have a material adverse effect on the rates that can be charged to customers by the Partnership with respect to assets that are subject to regulation by the Federal Energy Regulatory Commission or similar regulatory body.
The following are currently considered Eligible Holders:
- Individuals (U.S. or non-U.S.)
- C corporations (U.S. or non-U.S.)
- Tax exempt organizations subject to tax on unrelated business taxable income, or "UBTI," including IRAs, 401(k) plans and Keough accounts
- S corporations with shareholders that are individuals, trusts or tax exempt organizations subject to tax on UBTI
- Mutual Funds
The following are currently considered Eligible Holders, unless the information in parenthesis applies:
- S corporations (unless they have ESOP shareholders*)
- Partnerships (unless its partners include real estate investment trusts or "REITs", governmental entities and agencies, S corporations with ESOP shareholders* or other partnerships with such partners)
- Trusts (unless beneficiaries are not subject to tax)
The following are currently not considered Eligible Holders:
- Real Estate Investment Trusts (REITs)
- Governmental entities and agencies
- S corporations with ESOP shareholders*
*S corporations with ESOP shareholders are S corporations with shareholders that include employee stock ownership plans
The Partnership's General Partners may change it determination of what types of person or entities are considered Eligible Holders at any time.