Client Alert

FERC Expands Scope of Analysis for Affiliate Transactions

September 03, 2004

Jennifer L. Hong

Recently the Federal Energy Regulatory Commission expanded the scope of its analysis for future utility affiliate transactions in order to ensure that there is no favoritism shown to affiliates. In two separate orders issued July 28 and 29, 2004, FERC set forth a new analysis that it would use to evaluate all future applications that involve the acquisition of an affiliate’s assets and to evaluate sales of energy between affiliates.

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