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New Report on Maintaining Reliability While Integrating Green Power Resources

New Report on Maintaining Reliability While Integrating Green Power Resources

This post was written by attorney Roland Hall.

As the amount of wind and solar generation continues to increase, utilities are growing increasingly concerned about how to economically and efficiently maintain system reliability while integrating such variable energy resources.  Because of California’s high renewable portfolio target (33 percent by 2020), California has become the focus of studies and reports investigating how system operations will be affected by such a large mix of variable resources.  An interesting report addressing this topic was released earlier this month.  The report is a joint report by NERC (the North American Electric Reliability Association) and the California ISO (CAISO), which operates the transmission grid for most of California.  View the report by clicking here.    Read More »New Report on Maintaining Reliability While Integrating Green Power Resources

The Importance of PPA Termination Provisions

Termination and default are monumental events in the life of any contract.  They can permanently sever relationships and significantly impact the financial future of the impacted parties.  This principle is especially true in the context of a power purchase agreement.

A recent case between a power producer and power purchaser demonstrates the importance of the termination and default provisions.  While other provisions certainly were not insignificant, the outcome of the case ultimately rested on the meaning and application of the termination and default provisions. Read More »The Importance of PPA Termination Provisions

Pre-Sandy New Jersey Court Cites Potential Power Loss Due to Hurricanes

Many consumers in the northeastern states are without power due to the devastating effects of Hurricane Sandy.  Interestingly, a federal court in New Jersey heard ominous testimony last September concerning the potential impact of catastrophic hurricanes and other natural disasters on transmission assets.  In support of a New Jersey law designed to ensure reliable power, witnesses cited the potential impact of hurricanes, thunderstorms, forest fires, and other events that affect electric transmission. Read More »Pre-Sandy New Jersey Court Cites Potential Power Loss Due to Hurricanes

Guest Blogger, David Feldman of NREL, Discusses Treasury Scrutiny of Section 1603 Applications and Grants

Recent documents released from the IRS and the U.S. Department of Treasury show increased scrutiny on Treasury’s 1603 Cash Grants in Lieu of Energy Tax Credits program.  The program has awarded a significant amount of money to renewable energy project owners.  From September 1, 2009 through September 9, 2011, the 1603 program issued around $9 billion to 20,000 projects.  This large government expenditure has put an equally large responsibility on the Treasury department to ensure the funds are used correctly.Read More »Guest Blogger, David Feldman of NREL, Discusses Treasury Scrutiny of Section 1603 Applications and Grants

Treasury Identifies Ineligible Costs Under Section 1603

The Treasury Department is vested with the authority to review and approve applications for funding by the Section 1603 grant program.  In completing such applications, applicants should consider the key areas of concern and past rejection by the Treasury Department.  In addition, a recent Chief Counsel Attorney Memorandum explains that the Internal Revenue Service will retain authority to audit Section 1603 grants because excess grants result in understated income.  Applicants should review their applications in light of the Treasury Department’s initial review and possible audit by the IRS.Read More »Treasury Identifies Ineligible Costs Under Section 1603