On February 29, 2012, GenON Energy, Inc. (“GenON”) announced its 2011 financial results, and plans to deactivate 3,140 MW of generating capacity in the PJM Interconnection LLC (“PJM”) region between 2012 and 2015. GenON’s news release pointed to costs for additional environmental controls and stated that “forecasted returns on investments necessary to comply with environmental regulations are insufficient.”
Business Developments
House Ag Panel Approves Bills to Roll-Back CFTC Oversight of Energy Swaps
By Troutman Pepper Locke on
Posted in Uncategorized
On January 26, 2012, the House Agriculture Committee approved bills that would ease Commodities Futures Trading Commission (“CFTC”) regulation of swaps (i.e., over-the-counter derivatives) by energy companies under 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. Swaps were never regulated by CFTC prior to Dodd-Frank.
Keystone XL Pipeline Presidential Permit Denied
By Troutman Pepper Locke on
Posted in Uncategorized
On January 18, 2012, President Obama issued a Presidential Memorandum directing the Secretary of State to deny an oil pipeline permit application submitted by Keystone XL. The Keystone XL Pipeline is an expansion that would start in Hardisty, Alberta and extend south to a point in Port Arthur, Texas.
FERC Rejects Duke-Progress Mitigation Proposal in Merger Proceeding
By Troutman Pepper Locke on
Posted in Uncategorized
On December 14, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) rejected a market power mitigation filing by Duke Energy Corporation (“Duke”) and Progress Energy Inc. (“Progress”) (together the “Applicants”) in connection with their proposed merger.
MISO Receives Approval of 215 New Transmission Projects
By Troutman Pepper Locke on
Posted in Uncategorized
On December 8, 2011, the Midwest Independent Transmission System Operator, Inc.’s (“MISO”) Board of Directors approved MISO’s Transmission Expansion Plan 2011 (“MTEP11”). The plan includes 215 new transmission infrastructure projects and was developed over an 18 month period.
ITC Will Buy Entergy’s Transmission Business
By Troutman Pepper Locke on
Posted in Uncategorized
On December 5, 2011, Entergy Corporation (“Entergy”) and ITC Holdings Corp. (“ITC”) announced that Entergy will divest its transmission business and merge those assets into ITC. Entergy currently owns approximately 15,700 miles of transmission in the states of Arkansas, Louisiana, Mississippi, and Texas. After completion of the merger, ITC will become one of the nation’s largest transmission companies with over 30,000 miles of transmission.
Kinder Morgan and El Paso to Merge and Form Largest American Natural Gas Pipeline Network
By Troutman Pepper Locke on
Posted in Uncategorized
On October 16, 2011, Kinder Morgan, Inc. (“Kinder Morgan”) and El Paso Corporation (“El Paso”) announced that Kinder Morgan will be buying El Paso for approximately $38 billion (including outstand debt), creating the largest natural gas pipeline and storage company in the country.
Petition Filed Alleging “Dumping” of Imports of Crystalline Silicon Solar Cells and Panels
By Troutman Pepper Locke on
Posted in Uncategorized
On October 18, 2011, SolarWorld Industries America Inc. (“SolarWorld”) filed a petition with the International Trade Commission (“ITC”) and the Department of Commerce (“Commerce”) alleging that crystalline silicon solar cells and panels imported from China are being sold at an unfair value in the U.S. This practice is referred to as “dumping.” The petition also alleges that imports from China are benefitting from unlawful government subsidies.
Obama Administration Chooses Seven Electric Transmission Projects for Accelerated Permitting and Construction
By Troutman Pepper Locke on
Posted in Uncategorized
On October 5, 2011, the Obama Administration announced that it would “accelerate” permitting and construction of seven proposed electric transmission lines. These projects will serve as pilot demonstrations of streamlined processes and increased cooperation among federal, state and tribal authorities.
FERC Sees Market Power Problems with Duke/Progress Merger, Parties Propose Mitigation Plan
By Troutman Pepper Locke on
Posted in Uncategorized
On September 30, 2011, FERC conditionally approved the proposed merger between Duke Energy Corporation (“Duke”) and Progress Energy, Inc. (“Progress”) (together, “Applicants”). FERC “conditionally approved” the proposed merger, imposing conditions on the Applicants related to horizontal market power.