Master limited partnerships (MLPs) and the related exchange traded funds saw notable increases in volume Thursday after the Federal Energy Regulatory Commission (FERC) adjusted its tax treatment in ways that should benefit natural gas pipeline MLPs.

The Alerian MLP ETF (NYSEArca: AMLP), the largest MLP-related ETF, saw its volume climb to almost double the daily average with about two hours left in Thursday session. Earlier this year, FERC stated that MLPs will no longer be able to recover an income-tax allowance.

“The Federal Energy Regulatory Commission (FERC) today responded to a federal court remand by stating it no longer will allow master limited partnership (MLP) interstate natural gas and oil pipelines to recover an income tax allowance in cost of service rates,” according to a FERC statement.

MLPs don’t make their money based on oil or gas prices. Unlike other energy sector stocks, MLPs primarily deal with the distribution and storage of energy products, so their business model is less reliant on the commodities market since MLPs profit off the quantity of oil and natural gas they are able to move around.

Good News for MLPs

“The Federal Energy Regulatory Commission rule adjusts their tax treatment in ways that should help gas pipeline MLPs, Guggenheim Securities analyst Matthew Phillips wrote in a note,” reports Bloomberg.

MLPs primarily deal with the distribution and storage of energy products, so their business model is less reliant on the commodities market since MLPs profit off the quantity of oil and natural gas they are able to move around. Consequently, MLPs have historically shown a weaker correlation to energy prices over longer periods as MLPs act more like energy toll roads, profiting on the volume of oil moving through their pipelines.