(September 15, 2011) - Paul Hastings LLP, a leading global law firm, announced today that the firm represented Idaho Wind Partners (IWP), in securing a decision from the Federal Energy Regulatory Commission (FERC), that will enable renewable developers to monetize their Renewable Energy Credits (RECs), while retaining rights and benefits associated with Qualifying Facilities (QFs). The decision will allow entities to capitalize on the RECs that their projects have produced.
IWP faced opposition from utility providers that argued under the sale/buyback structure, the wind power company should lose its status as a QF power under PURPA, and that the Idaho commission should approve cost rates be applicable to such sales. IWP proved that the sale/buyback of the same electricity at the same price would not impact Idahos wholesale market, nor manipulate the market.
In its orders responding to IWP's specific requests for clarifications, FERC established that the described sale and buy-back of the same QF energy only (without the RECs) by the QF project companies from the Third Party would not impact the QF status of the project power, as long as the Third Party was also a QF (regardless of the QF Third Party's characteristics, including its size, location, or affiliation). FERC also agreed that the sale/buyback structure would not violate FERCs market manipulation rules under 18 C.F.R. § 1c.2.
Global Projects Group partner William DeGrandis
led the team, which also included real estate partner Thomas Mounteer
and associates Candice Castaneda
and Jeff Allmon. Paul Hastings LLP is a leading global law firm with offices in Asia, Europe, and the United States. We provide innovative legal solutions to financial institutions and Fortune 500 companies. Please visit www.paulhastings.com for more information.