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Client Alert

Qualifying Facilities Under Scrutiny by the Federal Energy Regulatory Commission

July 01, 2003

Energy & Project Finance Practice Groups

Stemming in part from the allegations that Enron Corporation violated the ownership requirements of qualifying facilities under the Public Utility Regulatory Policies Act of 1978, the Federal Energy Regulatory Commission had previously made statements that it was reviewing all filings involving certifications, recertifications and applications of QFs. FERC has now taken the next step. On June 19, 2003, the FERC Staff issued a series of letters to a number of QFs informing them of an audit and requesting affidavits and statements regarding ownership.

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