Bracewell & Giuliani



Powered by the attorneys of Bracewell & Giuliani, Energy Legal Blog is your resource for updates and analysis on national and regional energy issues.
  1. To Regulate or Not to Regulate Demand Response, Asks Maryland PSC

    Tuesday, August 31, 2010 1:52 pm by Andrew McLain
    The Maryland Public Service Commission (PSC) recently convened a proceeding to investigate whether to begin regulating providers of demand response services as electricity suppliers. To participate in the proceeding, interventions must be made with the PSC by September 2 and comments submitted by September 30.

    A central issue in the proceeding will be whether demand response providers are “electricity suppliers,” which the Maryland Code defines as someone “(i) who sells: 1. electricity; 2. electricity supply services; 3. competitive billing services; or 4 competitive metering services; or (ii) who purchase, broker, arrange, or market electricity or electricity supply services for sale to a retail electric customer.” If determined to be electricity suppliers, then demand response providers may be subjected to a host of new licensing and compliance responsibilities, including creditworthiness, registration, marketing, reporting, and record retention, depending on the outcome of the proceeding. (more…)


  2. A Divided CFTC Flexes Muscles With $12 Million ConAgra Civil Penalty

    Thursday, August 26, 2010 3:30 pm by George Fatula

    The Commodity Futures Trading Commission issued an order August 16 approving a settlement resolving allegations that ConAgra Trade Group, Inc. caused a non-bona fide price to be reported for a NYMEX spot month crude oil futures contract in violation of the Commodity Exchange Act (CEA).  The settlement is noteworthy in that (1) it required ConAgra to pay a $12 million civil monetary penalty (significantly after the event occurred) even though no fraudulent intent or specific injury was alleged, and (2) two of five commissioners dissented vigorously from the majority’s decision to accept the settlement. (more…)


  3. DC Circuit Affirms FERC On Maintaining Price Caps On Gas Pipeline Capacity Sales

    Monday, August 23, 2010 8:51 am by George Fatula

    The U.S. Court of Appeals for the D.C. Circuit has upheld FERC’s decision to remove price ceilings on short term (one year or less) capacity releases by shippers on natural gas pipelines, while maintaining price ceilings on capacity sales by the pipelines themselves.  The court’s decision, issued on August 13 in Interstate Natural Gas Assoc. of America v. FERC, rejected arguments from an association of pipelines that FERC had impermissibly subjected pipelines and shippers to different regulatory standards in the same short-term capacity sales market. (more…)


  4. Rate Base, but no Tracker, for Maryland Smart Grid Program Costs

    Tuesday, August 17, 2010 11:32 am by Andrew McLain

    Baltimore Gas & Electric (BG&E) won Maryland PSC approval late Friday for an $833 million smart grid plan pursuant to which it will install 3,000 smart meter devices per day through 2014. Without timely PSC approval, BG&E risked losing approximately $200 million in Department of Energy subsidies to implement the plan.

    The PSC rejected BG&E’s original plan, which included the large-scale build-out of advanced meters and mandatory time-of-use (TOU) billing because the PSC opposed (1) granting BG&E a rate tracker to recover smart grid costs as they are incurred as opposed to following a prudence determination, and (2) imposing TOU rates on all retail customers. The PSC also faulted the original BG&E proposal as doing too little to educate customers on how smart grid programs would work. The PSC nevertheless invited BG&E to resubmit its proposal to address these concerns. (more…)


  5. FERC Announces Order Banning Nonjurisdictional Pipeline Transactions

    Friday, August 6, 2010 10:10 am by George Fatula

    Recently, the Federal Energy Regulatory Commission announced a decision under which it will have broader regulatory power over buy-sell transactions on small pipelines. The unexpected decision, stemming from a case involving Arizona Public Service Co. and Sequent Energy Management LP, expands FERC’s prohibition of transactions involving transportation through open access interstate pipelines to apply to intrastate pipelines as well. SNL Financial interviewed Bracewell & Giuliani Partner Mark Lewis about the decision and its potential effects on these common pipeline transactions. Click here to read the article.


  6. FERC’s Feed-in Tariff Order Addresses State/Federal Conflict in Renewables Area

    Wednesday, August 4, 2010 8:39 am by Andrew McLain

    The Federal Energy Regulatory Commission (“FERC”) recently determined in a case of first impression that states have limited authority to implement feed-in tariff programs, which generally seek to encourage “green” energy. For energy service companies and energy sellers seeking to take advantage of these programs, the order potentially dampens the prospects for feed-in tariffs to take off in the US, and, at a minimum presents additional FERC compliance considerations, discussed below.

    Feed-in tariffs generally consist of three elements: (1) a state-fixed incentive rate designed to attract new sources; (2) a mandated offer to purchase power for a prescribed duration through long-term contract; and (3) a guaranteed access to the grid. (more…)


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