In order to comply with applicable FERC rate-making policies, Spectra Energy Partners, LP requires an owner of our units to be an Eligible Holder. Eligible Holders of our units are individuals or entities subject to United States federal income taxation on the income generated by us or entities not subject to United States federal income taxation on income generated by us, as long as all of the entity's owners are subject to such taxation.
The following are 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
Potentially Eligible Holders
- S corporations (unless they have ESOP shareholders*)
- Partnerships (unless its partners include mutual funds, 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)
- Mutual funds
- 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.