FERC Reconsidering Horizontal Market Power Analyses For Purposes of Section 203 Filings and Market-Based Rate Applications

Executive Summary On September 22, 2016, the Federal Energy Regulatory Commission (“FERC”) issued a Notice of Inquiry (“NOI”) seeking comment on whether FERC should make changes to the manner in which it evaluates horizontal market power for purposes of evaluating transactions under Section 203 of the Federal Power Act (“FPA”) and its market-based rate program. Among other things, if FERC ultimately adopts this proposal, certain transactions that currently require no detailed market power analysis to be submitted in order to obtain approval would now be subject to more scrutiny. For instance...

FERC Proposes Clarifications to EQR Requirements

In its September 22 Open Meeting, the Federal Energy Regulatory Commission (Commission) issued a Notice Seeking Comments on Proposed Revisions to Electric Quarterly Report Reporting Requirements (in Docket No. RM01-8-000, et al. ) as part of an ongoing effort to “provide for more accurate and consistent data in the EQR.” [1] Two proposed changes in the September 22 Notice are likely to be of significant interest: clarifications on reporting of booked out power and the increased ancillary services reporting obligations for transmission providers. The Notice also seeks comment on other proposed...

U.S. Futures Exchanges Disciplinary Actions Report - August 2016

ICE 2015-051 Block Trades Violation of Rule 6.08(b)(i) - Order Ticket Requirements, Rule 4.07(c) - Block Trading, and Rule 4.01 - Duty to Supervise. On multiple occasions, an entity allegedly failed to comply with the recordkeeping requirements when handling customer orders, misreported the correct execution time of block trades as well as submitted a block trade beyond the 15-minute reporting period, and failed to adequately supervise its brokers’ block trade activity. $15,000 fine and cease and desist. CME CME 13-9366-BC Misc. Violation of Rule 432.X. - General Offenses (in part); Rule 532...

Negotiating PSCs - The Dangers of Using Intermediaries

In Monde Petroleum SA v WesternZagros Ltd [2016] EWHC 1472 (Comm), the English Commercial Court has found that a party to a consultancy agreement can become liable for the misrepresentations made by a third party intermediary. Parties negotiating production sharing contracts ("PSCs") in regions emerging from politically unstable periods will regularly seek the assistance of local third party intermediaries in order to lobby the relevant political decision makers to get the deal done. Whilst it is a fairly common practice, this case highlights the dangers inherent in dealing with third party...

EPA Proposes Revisions to Public Petition Process for Title V Permits

On August 24, 2016, the U.S. Environmental Protection Agency (EPA) published proposed revisions to the federal Title V operating permit rules, which govern pollutants at major sources under the Clean Air Act. The proposed revisions aim to streamline and clarify the processes related to the submittal and review of Title V petitions. Petitions are a key element of the public participation process under the Title V program. The federal rules at 40 CFR Part 70 and equivalent state provisions allow members of the public to petition EPA to object to a state-issued Title V operating permit, if EPA...

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