TeachMeFinance.com - explain Pipelines, rate regulated
Pipelines, rate regulated --
FRS (Financial Reporting System Survey) establishes three pipeline segments: crude/liquid (raw materials); natural gas; and refined products. The pipelines included in these segments are all federally or State rate-regulated pipeline operations, which are included in the reporting company's consolidated financial statements. However, at the reporting company's option, intrastate pipeline operations may be included in the U.S. Refining/Marketing Segment if: they would comprise less than 5 percent of U.S. Refining/Marketing Segment net PP&E, revenues, and earnings in the aggregate; and if the inclusion of such pipelines in the consolidated financial statements adds less than $100 million to the net PP&E reported for the U.S. Refining/Marketing Segment.
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