In our February update, we noted that ISO New England (ISO-NE) and New York Independent System Operator (NYISO) stakeholders continue to discuss carbon pricing as one potential solution to better align state and regional decarbonization goals with wholesale electricity markets. Since that update, carbon pricing remains on the agenda, though ISO-NE has shifted its focus to “near-term” solutions, and NYISO has halted a study on carbon pricing in anticipation of the Federal Energy Regulatory Commission’s (FERC) upcoming technical conference on state energy policies and the wholesale markets operated by the three eastern grid operators: ISO-NE, NYISO and PJM Interconnection, L.L.C. (PJM). Only the two former grid operators have initiated formal stakeholder discussions featuring carbon pricing thus far; however, as indicated in a recent statement by PJM President and CEO Andrew Ott prior to the conference, PJM is now in the beginning stages of discussing carbon pricing with its stakeholders and state policy-makers. With all three eastern grid operators now considering carbon pricing, FERC’s upcoming technical conference will likely serve as a forum to advance the conversation on carbon pricing as one potential solution to reconcile the wholesale markets with state energy policies.
(Houston) – Lawyers and advisors at Akin Gump held a briefing today, titled “The Global Energy Industry: A Look to the Year Ahead in 2017,” addressing some of the big issues likely to affect the global energy industry in the coming year. The event was held as an in-person briefing in the firm’s Houston office and as a webinar for participants around the world.
Globe Law & Business, in its new book Oil and Gas Sale and Purchase Agreements, has included several chapters written by Akin Gump lawyers. The chapters and their corresponding authors are as follows:
- “Conditions precedent and deferred completions,” by oil and gas partner John LaMaster
- “Oil and gas warranties,” by oil and gas counsel Caroline-Lucy Moran
- “Environmental provisions in upstream acquisitions and divestitures,” by environment and natural resources partner emeritus Paul Gutermann
- “Decommissioning,” by oil and gas counsel Nicholas Antonas and partner Marc Hammerson
- “Anti-corruption provisions,” by international trade counsel Nicole D’Avanzo and partner Tatman Savio
- Oil and gas boilerplate provisions,” by John LaMaster
At its November 17, 2016, Open Meeting, the Federal Energy Regulatory Commission (FERC or the “Commission”) proposed to amend its regulations to address and remove barriers to the participation of electric storage resources1 and distributed energy resource (DER) aggregations in the capacity, energy and ancillary services markets operated by regional transmission organizations and independent system operators (RTOs/ISOs).2 The Notice of Proposed Rulemaking (NOPR) follows a broad inquiry conducted by FERC earlier this year to identify barriers to participation of energy storage in the RTO/ISO markets.
On November 17, 2016, the Federal Energy Regulatory Commission’s (FERC or “Commission”) Office of Enforcement (“Enforcement”) released its annual Report on Enforcement (the “2016 Report”). This year’s report is the 10th such report to be issued. Enforcement began the practice in November 2007 in the wake of Congress’ passage of the Energy Policy Act of 2005 (“EPAct 2005”), which substantially expanded the Commission’s enforcement authority and the commission’s promulgation in 2006 of its rule prohibiting market manipulation (the “Anti-Manipulation Rule”). FERC’s current and former chairmen and commissioners have consistently implored FERC-regulated entities to study the annual report for guidance on how the Commission approaches compliance and enforcement.
At its November Open Meeting, the Federal Energy Regulatory Commission (FERC or the “Commission”) issued a Final Rule (Order No. 831) directing the Regional Transmission Organizations and Independent System Operators (RTO/ISO) to raise their existing caps on energy market offers, allowing electric generators and other market participants to submit higher-priced offers to supply energy, and allowing those higher-priced offers to set market clearing prices in certain instances. These directives may result in higher market clearing prices and increased market revenues for electricity generators, but they will require RTOs/ISOs to adopt additional procedures for cost verification before such higher clearing prices can occur.
On November 15, 2016, the Federal Energy Regulatory Commission (FERC) issued an order dismissing a petition for declaratory filed by two Maryland electric cooperatives requesting a FERC finding that regulations governing Maryland’s pilot Community Solar Program (“Pilot Program”) conflict with the Public Utility Regulatory Policies Act of 1978 (PURPA).
(Houston) – Akin Gump is pleased to announce it has released its “2015 Energy Year in Review,” which examines the current state of the global energy market and highlights the energy matters with which the firm was involved last year in the following areas:
- financial restructuring
- capital markets
- project development and project finance
- energy regulation, markets and enforcement
- energy litigation and international arbitration.