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IRS Ruling Address Power Generation by REITs

Developers are constantly looking for ways to find capital for their energy development projects.  They have solicited all sorts of capital, including banks, angel investors, private equity investors, private development bonds, and other sources.  One other potential source of capital for certain types of projects is a Real Estate Investment Trust (REIT).  A recent IRS private ruling discusses the limitations and potential viability of REITs for funding energy development projects.  Read More »IRS Ruling Address Power Generation by REITs

Electric Cooperatives Face Increasing Scrutiny Over Net Metering Issues

This blog post was written by AHC attorney Roland F. Hall.

Electric Cooperatives Face Increasing Scrutiny Over Net Metering Issues

Net metering is a billing mechanism that allows consumers to receive credit for electricity they generate from small-scale renewable energy resources and transfer onto the grid.  The details of how net metering works, such as the value placed on energy produced and the handling of next exports, vary among the states and electric utilities that have net metering policies in place. Read More »Electric Cooperatives Face Increasing Scrutiny Over Net Metering Issues

IRS Revokes Potentially Beneficial Ruling for Renewable Energy Developers

A prior blog post discussed a private ruling by the service regarding the allocation of purchase price among the assets of a renewable energy developer.  Attorney David R. Cook discussed the ruling in a webinar on PPA taxation and recommended the participants to read the ruling with a dose of skepticism.  As it turns out, on reconsideration, the Service has revoked the prior ruling because it “is not in accord with the current views of the Service.” Read More »IRS Revokes Potentially Beneficial Ruling for Renewable Energy Developers

IRS Ruling Discusses Important Attributes of Power Purchase Agreements

In the context of renewable energy project development, power purchase agreements (“PPAs”) are the cornerstone upon which the project is built and operated.  PPAs are contracts through which the developer or ultimate owner of a project sells power generated by the project to another party.  PPAs typically represent the primary, and sometimes sole, revenue source for the project.  Accordingly, PPAs should be drafted in a manner that recognizes their critical importance to both the project developer or owner and power purchaser.Read More »IRS Ruling Discusses Important Attributes of Power Purchase Agreements