Regulated Resources Newsletter, Volume 2, Issue 2
Suedeen G. Kelly of Modrall Sperling
The New Mexico Public Regulation Commission (PRC or Commission) has continued to consider the establishment of an RPS in the state. After holding a hearing and a workshop to consider the issues surrounding the standard in recent months, the Commission issued a new proposal on October 1, 2002. This new proposal replaces the one issued in March 2002.
Restructuring Canadian Electricity Markets
of McCarthy Tetrault
The approach toward restructuring electricity markets has differed across Canada as a result of the unique industry and regulatory structures, regional circumstances and issues that face each of the provinces. For example, factors such as anticipated rapid growth in energy consumption and the need to replace aging power generation infrastructure were key in the decision by Alberta to pursue restructuring of its electricity industry in 1996. Ontario, by contrast, decided to pursue restructuring of its electricity industry to address, among other things, serious concerns regarding the fiscal and operational performance of Ontario Hydro.
Emerging Legislative and Regulatory Considerations:
Andrew R. Wallace of Day Pitney LLP
Introduction As state and federal legislators intensify their efforts to restructure the electric utility indus.
Buying Green: The Government Steps Up Environmentally Friendly Preferable Purchasing
Alec D. Rogers* of The Federalist Society
With an annual contract budget of over $400 billion, the U.S. government is the largest purchaser of goods and services in the world. A recent trend has been to leverage the procurement process to develop the marketplace for environmentally sound products through a process known as "environmentally preferable purchasing" ("EPP").
IRRC Approves Regulations
Robert W. Thomson of Buchanan Ingersoll & Rooney PC
At its November 4, 1999 meeting, the Independent Regulatory Review Commission approved proposed regulations from th.
FERC Reaffirms and Clarifies Groundbreaking Rules on Open Access Transmission, Recovery of Stranded Investment and Operation of Open Access Same Time Information Systems
Paul, Hastings, Janofsky & Walker LLP
In an order largely reaffirming its landmark final rules on open access transmission and recovery of stranded investment, the Federal Energy Regulatory Commission ("FERC") issued Order No. 888-A to confirm its commitment to spur competition in the wholesale market for electric power (FERC Stats. & Regs., ¶ 31,048 (1997)).
Summary of the Federal Energy Regulatory Commission's Notice of Proposed Rulemaking on Standard Market Design
Leslie J. Lawner of Modrall Sperling
On July 31, 2002, the FERC issued a Notice of Proposed Rulemaking in Docket No. RM01-12-000, "Remedying Undue Discrimination through Open Access Transmission Service and Standard Electricity Market Design," generally referred to as the SMD Rule. Initial comments on the rule are due 75 days after publication. The proposed rule would require all public utilities with open access transmission tariffs (OATTs) to file modifications to those tariffs to conform to the mandates of the proposed rule.
The Power to do Anything
Richard G. Stock and Patricia Byrne of Lexpert
Deregulation of the electricity sector in Alberta is creating fierce competition among industry participants. One of the chief players is ENMAX Corporation, the 90-year old wholly-owned City of Calgary utility. Its challenge: to transform itself from a distribution and transmission monopoly into a nimble, competitive and profitable energy company with a diverse product base.
Energy (Electricity/Corporate)
Kim Thomassin,Seán C. O'Neill,Lyle S. Yuzdepski and Robin M. Sirett of McCarthy Tetrault
The approach toward restructuring electricity markets has differed across Canada as a result of the unique industry and regulatory structures, regional circumstances and issues that face each of the provinces. For example, factors such as anticipated rapid growth in energy consumption and the need to replace aging power generation infrastructure were key in the decision by Alberta to pursue restructuring of its electricity industry in 1996.
Treasury's Blueprint: Regulatory Efficiency or More Red Tape?
John Shu of The Federalist Society
On March 31, 2008, the U.S. Department of the Treasury issued its "Blueprint for a Modernized Financial Regulatory Structure," the largest proposed revamping of federal financial regulation and oversight since the Great Depression.
What to Know When Taking Equity Investments from Electric Utilities
Buchanan Ingersoll & Rooney PC
Technology Companies Considering Equity Investments from Electric Utilities Should Be Aware of FERC Policies Concer.
FERC Decision Creates Opportunities To Enhance Industrial Asset Value
Paul, Hastings, Janofsky & Walker LLP
Many manufacturing and commercial facilities around the country have acquired their own on-site electric generators to use for electric power supply on a regular basis, or as a backup to use when the local utility is experiencing power outages or transmission interruptions.
Major California Legislation Enacted in 1997 Relating to Energy
Pillsbury Winthrop Shaw Pittman LLP
ENERGY Legislation of Interest-Reporting Obligations In response to the deregulation of electricity generati.
FERC Issues New Rules Governing the Accounting, Reporting and Rate Filing Requirements for Asset Retirement Obligations
William J. Harmon of Jones Day
The Federal Energy Regulatory Commission has issued new regulations that address the accounting, financial reporting, and rate filing requirements applicable to asset retirement obligations imposed on public utilities, hydroelectric licensees, natural gas companies, and oil pipeline companies. The effective date for the new accounting and reporting requirements is January 1, 2003 for a jurisdictional entity whose fiscal year begins on January 1, 2003.
Recent Oil and Gas Regulatory Developments in Alberta
of Thackray Burgess
What follows is a brief overview of significant oil and gas regulatory developments occurring between April and November, 2005. The scope is limited to consideration of Alberta Energy and Utilities Board ("EUB") decisions and policy changes, and judicial appeals of EUB and other regulatory decisions.
What's Happening in California
Davis Wright Tremaine LLP
In two different forums, California government entities continue to implement changes reacting to the California energy crisis of 2000 and 2001. Each of these initiatives is aimed at unifying energy policy and planning in California.
What's Happening At FERC
Davis Wright Tremaine LLP
In a ruling that could ignite a jurisdictional showdown between Virginia and federal regulators, the Federal Energy Regulatory Commission (FERC) on April 1, 2003, conditionally approved a request by American Electric Power Co., Inc. (AEP) and Commonwealth Edison Co. (ComEd) to transfer control of their respective FERC-jurisdictional transmission facilities to PJM Interconnection, LLC (PJM).
Regulated Resources Newsletter, Volume 1, Issue 1
Suedeen G. Kelly of Modrall Sperling
The Federal Energy Regulatory Commission recently ordered refunds for all June and July, 2001, California and WSCC wholesale sales above the mitigated price. The two orders reject the submitted cost justifications for a variety of reasons. On June 19, 2001 FERC set out the justification criteria, disallowing credit-risk premiums and emissions costs.
Market Power Barriers to Competition
Cynthia S. Bogorad of Spiegel & McDiarmid LLP
The electric industry is in the midst of a transformation from reliance on regulation to reliance on competitive.
If This Transco is the Key, Let's Find Another Door
Cynthia S. Bogorad of Spiegel & McDiarmid LLP
The September-October 1998 issue of Public Power included an article by M. Douglas Dunn and Mark Williams .
California to Unify Energy Policy and Planning to Ward Off Future Energy Crisis
Allison A. Davis of Davis Wright Tremaine LLP
In two different forums, California government entities continue to implement changes reacting to the California energy crisis of 2000 and 2001. Each of these initiatives is aimed at unifying energy policy and planning in California. On May 8, the California Public Utilities Commission (PUC) became the last of three California energy agencies to approve an "Energy Action Plan."
Schwarzenegger Energy Policies: Some Clues and Many Questions
Christopher A. Hilen of Davis Wright Tremaine LLP
With the inauguration of Arnold Schwarzenegger as Governor of California on November 17, everyone with a stake in California's energy future is looking for clues into the new Governor's policies on electricity and natural gas.
FERC Proposals and Orders on Standard Market Design and Regional Transmission Organizations
Suedeen G. Kelly of Modrall Sperling
This article is an attempt to provide an overview of the activities of the Federal Energy Regulatory Commission (FERC) relating to a standard design for electricity markets and the formation of regional transmission organizations.
Domestic Energy Policy In The Era Of Electric Industry Deregulation: The Future Of Gas, Coal, Railroad, Nuclear Power, Renewables, And Oil Industries . . .And Their Executives And Lawyers
Suedeen G. Kelly of Modrall Sperling
This paper was originally published by the Rocky Mountain Mineral Law Foundation in the proceedings of the 47th Annual Rocky Mountain Mineral Law Institute (2001).
Rules Spurring Formation of Regional Transmission Organizations Adopted by Federal Energy Regulatory Commission
Thelen LLP
This article summarizes the Federal Energy Regulatory Commission's rules that are designed to expedite the disaggregation of transmission facilities from vertically-integrated electric utilities.
The Northwest Perspective on the Electricity Crisis: Where Are We, How Did We Get Here, And How Can We Get Out?
Craig Gannett of Davis Wright Tremaine LLP
From the perspective of the Northwest, this paper addresses the electricity crisis currently besetting the entire West. The first section describes where we are, and where we are headed if effective action is not taken. The second section describes how we got here, so that we understand the sources of the problem we are trying to solve. The third section describes potential solutions.
Detailed Summary of FERC'S Standard Market Design NOPR
Stephen H. Watts of McGuireWoods LLP
On July 31, the Federal Energy Regulatory Commission (FERC), issued a notice of proposed rulemaking (NOPR) in Docket No. RM01-12-000 containing its long-awaited standard market design (SMD) program designed "to remedy remaining undue discrimination in the provision of interstate transmission services and in other industry practices, and to assure just and reasonable rates within and among regional power markets." Regulations implementing SMD would be contained in a new Subpart G to be added to 18 CFR Part 35.
The Rise In Motor Vehicle Dealer/Manufacturer Disputes: How To Avoid Becoming A Litigation Victim
Brit T. Brown of Beirne, Maynard & Parsons, L.L.P.
Economic, regulatory and other market forces create a dynamic automotive industry requiring flexible strategies to stay competitive. While manufacturers must respond to international and national trends, dealers focus on local market demands. Consequently, the strategies adopted by manufacturers and dealers often conflict and result in mutually exhausting litigation, distracting resources required to stay competitive.
The Russian Law "On Natural Monopolies"
Coudert Brothers LLP
The recent legislative development in the area of regulation of natural monopolies constitutes a new trend in Russ.
FERC Sets New Conditions for Approval of Utility Debt Issues
William J. Harmon of Jones Day
The Federal Energy Regulatory Commission ("FERC") must approve the issuance of securities by some utilities subject to its jurisdiction. In an order dated February 20, 2003, FERC imposed stringent new conditions on these debt issues, which it said will be applicable to all future cases.
Open Transmission Access--Is There Trouble in Paradise?
Robert C. McDiarmid of Spiegel & McDiarmid LLP
A straightforward question deserves a straightforward answer. Yes. .
The Rise of Mergers and Acquisitions in the Energy Sector: What to Expect and How to Be Prepared for Potential Litigation Issues
Brit T. Brown,David A. Pluchinsky and George B. Murr of Beirne, Maynard & Parsons, L.L.P.
The trend toward mergers and acquisitions in the energy sector is accompanied by an increased risk of post-transaction litigation. Since post-transaction litigation can take many forms, a single merger or acquisition can give rise to many different types of litigation and differing causes of action. Both management and its counsel must be aware of these risks.
False Start on PUHCA
Cynthia S. Bogorad of Spiegel & McDiarmid LLP
Senate Majority Leader Trent Lott may soon seek to move Sen. Alfonse D'Amato's bill to repeal the Public Utility Holding Company Act in advance of, and unconnected to, comprehensive electric industry restructuring legislation. Holding-company proponents of PUHCA repeal are attempting to cast S. 621 as the long overdue elimination of an outdated securities law whose effect is limited to needlessly burdening the 17 registered multistate utility holding companies.
FERC Standards of Conduct and Business Support Functions
Regulatory Research Associates
Background FERC regulations require certain separation between transmission employees and wholesale merchant fun.
Antitrust Defense May Not Apply to Subsidiary That Is Heavily Regulated
Mark Fogelman of Steefel, Levitt & Weiss
The Copperweld doctrineÃâa well-established antitrust defenseÃâgenerally bars claims of an unlawful antitrust combination or conspiracy against the members of a single corporate family. However, practitioners beware: The doctrine may not apply in cases where a member of the defendant corporate family is heavily regulated.
The Pennsylvania Plain Language Law: Keeping Contracts Simple
Grim, Biehn & Thatcher
On June 23, 1993, the Plain Language Consumer Contract Act (the "Act") was signed into law in Pennsylvania.
Congress Tackles Legal Issues in Implementing Electric Utility Deregulation
Mark A. Collins of Carr Maloney P.C.
Proponents of electric utility deregulation promise increased consumer choice, reduced prices, industry innovation,.
Shedding Light On Green Buildings
Max Friedman and Matthew E. Cudrin of Pillsbury Winthrop Shaw Pittman LLP
On August 14, 2003, the northeastern United States and parts of Ontario were paralyzed by a sudden blackout that stopped 50 million people in their tracks. While capacity was not the culprit, the blackout has spurred discussions within the real estate industry about energy strategies. That sharpened focus has, in turn, intensified interest in the concepts and strategies associated with "green buildings."
Association for Transportation Law, Logistics and Policy Association Highlights ? Antitrust Updates
Vincent F Prada of Sidley Austin LLP
This update examines the cases of: Midwestern Machinery, Inc. v. Northwest Airlines, Inc., Cheminor Drugs, Ltd. v. Ethyl Corp. and the acquisition of Panhandle Eastern and Trunkline by Consumers Energy.
Capital Currents--Views on Global Business from Washington Legal Leaders
Alan Baron,Philippe M. Bruno and Richard E. Powers Jr. of Dorsey & Whitney LLP
Features the following articles (1) Homeland Security's New Energy Challenge; (2) Business Without Borders: How to Navigate Changing International Trade Regulations Litigation In A Post-Enron World; and (3) Putting the Ethics Back into "Corporate Ethics."
Enron--Its Promise and Its Legacy
Allen W. Williams of Foley & Lardner LLP
Much of what Enron stood for involves important policy issues and initiatives which should not necessarily be buried with its name. As well, its legacy should be more than a knee jerk cremation. Leadership will be required to avoid having some of the important policy initiatives and novel business approaches for which Enron was carrying water thrown out because of the water boy.
Restructuring Ontario's Electricity Industry: A Legal Cornucopia Awaits
Bill Reno of Lexpert
For the last hundred years or so, it has all been so simple.
Resolving Environmental Issues In Washington: Agencies, Policymakers, and Strategies For Success
Frederick R. Anderson of Cadwalader, Wickersham & Taft LLP
Washington environmental policymaking and regulatory affairs are not the disorderly mix of influence peddling and u.
Regulated Resources Newsletter, Volume 2, Issue 1
Suedeen G. Kelly of Modrall Sperling
On March 12, 2002, the New Mexico Public Regulation Commission proposed a renewable portfolio standard (RPS) for state utilities. The Commission filed the proposed rule after the Utility Division Staff submitted a Petition for Rulemaking on the subject. Interested parties in the state had previously commented on the subject of renewable energy in Utility Case No. 3619, a Commission-initiated inquiry.
The Competitive Market for Power in the U.S.: The Role of ISOs and PXs
Nicolai J. Sarad and Dean M. Colucci of DLA Piper LLP
This article explains the role independent system operators and power exchanges play in such markets development.