On April 13, 2017 the Energy Storage Association (“ESA”) filed a complaint with FERC, alleging that PJM Interconnection, L.L.C. (“PJM”) had unilaterally implemented a series of changes to its Regulation market without FERC’s review and approval, in violation of the Federal Power Act (“FPA”). ESA contended that its members who participate in the Regulation market had “suffered significant and detrimental financial harm” as a result of PJM’s changes, and that ESA was filing its complaint “to compel PJM to give the Commission the opportunity to determine whether each of these changes are just and reasonable and not unduly discriminatory.” Continue Reading Energy Storage Association Alleges Changes to PJM Regulation Market Violate FPA
We would like to thank all our clients for choosing Troutman Sanders to represent them in 2016. In 2016, our work spanned 23 states and several countries and accounted for more than 2 gigawatts of installed renewable energy with a value exceeding $5.5 billion.
In “2016 Renewable Energy Market Year in Review and a Look Ahead to 2017,” we reflect on the biggest trends and challenges we observed in 2016 and offer insights into important trends and policy agenda items that will continue to be significant in 2017 and beyond, including:
- Tax Reform
- Federal Tax Credits
- The “Duck Curve”
- Renewable Portfolio Standards
- Energy Storage / Battery Storage
- Public Utility Regulatory Policies Act of 1978 (PURPA)
- Resurgence of Natural Gas-Fired Generation
- Commercial Power Purchase Agreements
- Proxy Revenue Swaps
- Foreign Investment
- Community Choice Aggregation
- Federal Policy
To view the complete newsletter, click here.
On February 13, 2017, a bipartisan coalition of 20 US governors published a letter imploring President Donald Trump to support the renewables industry. The group highlighted the wide impact the industry has across the nation, employing hundreds of thousands of Americans and transforming low-income and rural communities. The Governors highlight four ways in which Congress and the Trump administration could help the renewables industry.
First, grid modernization and transmission development. The Governors argued that any national infrastructure package should provide significant funding for grid modernization to address the electrical transmission challenges created by large expansions of renewable generation across the country. To implement and streamline the grid modernization process, the governors suggested that the administration create a state-federal task force to work with FERC and the National Laboratories. Continue Reading Bipartisan Governors Push Trump to Support Renewables in Infrastructure Planning
Troutman Sanders Project Finance Partners Justin Boose and John Leonti will moderate panels at Infocast’s Annual Projects & Money Conference in New Orleans on January 18 and 19 as well as its Wind Power Finance & Investment Summit in San Diego on February 8.
On Wednesday, January 18, Justin Boose will moderate a panel titled “Ancillary Markets – Compensation for Providing Stabilization Services to Renewable Generation.” Because renewables are an intermittent resource, the penetration of renewables requires firm generation sources to stabilize the grid. In certain markets, such as ERCOT, the ancillary markets are not providing the right signals needed to attract new thermal generation. The panel discussion will focus on this challenge and explore potential solutions.
On Thursday, January 19, John Leonti will moderate a panel titled “Renewables Outlook 2018, 2019 and Beyond.” The extension of the PTC and ITC has provided some much needed certainty for the renewables sector. However, there is still plenty of uncertainty around other drivers that will shape the project development landscape for solar and wind in 2018, 2019 and beyond. John and his panelists will explore the outlook for renewables development and examine the evolution of the tax equity market and financing structures to support growth.
We are pleased to offer clients and friends a 15% discount on registration. To receive this discount, please register directly with Infocast using discount code 170771.
On Wednesday, February 8, John Leonti will moderate a panel titled “Swaps and Other Risk Mitigation Products” at Infocast’s annual Wind Power Finance & Investment Summit in San Diego. The Summit offers unique networking opportunities to connect with the entire spectrum of the wind industry, at the highest levels—developers, yieldcos and yield-oriented vehicles, tax equity investors, lenders, private equity funds and other investors, turbine suppliers, PPA offtakers, customer and more.
We are pleased to offer clients and friends a 15% discount on registration. To receive this discount, please register directly with Infocast using discount code 1708107.
The Second Circuit Court of Appeals sent a clear message to secured creditors with its recent decision, Ring v. First Niagara Bank, N.A. (In re Sterling United, Inc.),1 that in the case of a collateral description in a financing statement for blanket liens covering all of a debtor’s assets — less is more. In the case, the secured party, First Niagara Bank, supplemented its “all assets” UCC-1 description with the phrase “including but not limited to, [all assets located at]”, followed by a specific address where the collateral was located.2 When the debtor later moved to a new location, this unnecessary additional phrase almost backfired on the secured party when a bankruptcy trustee moved to avoid the financing statement as a preference.3 The Court ultimately found after protracted litigation that the collateral description was sufficient, but First Niagara’s experience serves as a reminder to creditors (and their attorneys) that a simple “all assets” UCC-1 description limits the risk of future litigation.
1 Ring v. First Niagara Bank, N.A. (In re Sterling United, Inc.), No. 15–4131–bk (2d Cir. Dec. 22, 2016) (Summary Order).
2 Id., at * 4
3 See id.
With the Obama administration coming to an end, January 2017 marks the beginning of a dramatic wholesale conservative shift in federal public policymaking. Starting with the swearing-in of the 115th Congress on January 3rd, and followed by President Donald J. Trump’s inauguration on January 20th, the legislative and executive branches promise a robust schedule of activity heading into the Trump administration’s first 100 days.
Troutman Sanders Strategies team’s 2017 Federal Outlook provides an overview of the legislative and regulatory priorities for the 115th Congress and the incoming Trump administration. Click here to view a copy of the complete report.
Summary of FERC NOPR in Docket Nos. RM16-6 (Essential Reliability Services and the Evolving Bulk-Power System—Primary Frequency Response) and RM16-23/AD16-20 (Electric Storage Participation in Markets Operated by Regional Transmission
Organizations and Independent System Operators)
November 17, 2016
Docket No. RM16-6
- FERC proposes to revise the pro forma Large Generator Interconnection Agreement (“LGIA”) and the pro forma Small Generator Interconnection Agreement (“SGIA”) to require all newly interconnecting large and small generating facilities, both synchronous and non-synchronous, to install and enable primary frequency response capability as a condition of interconnection.
Continue Reading FERC Issues Key Rulemakings On Energy Storage
On November 17, 2016, FERC issued a Notice of Proposed Rulemaking (“NOPR”) in which it proposed to amend its regulations to require each Regional Transmission Organization and Independent System Operator (“RTO/ISO”) to revise its tariff to: (i) establish a participation model consisting of market rules that, recognizing the physical and operational characteristics of electric storage resources, accommodates their participation in organized wholesale electric markets; and (ii) define distributed energy resource aggregators as a type of market participant that can participate in organized wholesale electric markets under the participation model that best accommodates the physical and operational characteristics of its distributed energy resource aggregation.FERC stated that it was taking this action “to remove barriers to the participation of electric storage resources and distributed energy resource aggregations” in RTO/ISO markets, pursuant to its statutory obligation under the Federal Power Act (“FPA”) to ensure that RTO/ISO tariffs are just and reasonable and not unduly discriminatory or preferential. Continue Reading FERC Issues NOPR Proposing to Better Integrate Electricity Storage into Organized Wholesale Markets
On August 1, 2016, the New York Public Service Commission approved the state’s plan to achieve fifty percent of its generation needs from renewables. In so doing, New York joins a handful of other states (including California Hawaii and Vermont) with ambitious clean energy goals at or above the fifty-percent mark.
Energy storage is considered the next frontier in the renewable energy world. For certain energy storage systems, the ITC can serve as a valuable financial incentive that could help promote the widespread adoption of storage. Continue Reading ITC for Energy Storage under Consideration