On July 19, the Federal Energy Regulatory Commission (FERC) issued proposed rule changes to clarify and update its advance approval and reporting requirements for officers and directors who hold positions simultaneously with more than one public utility or with a public utility and certain other specified companies. Regulators refer to these simultaneous positions as "interlocking positions" or "interlocks." Under Section 305 of the Federal Power Act, it is unlawful, absent FERC approval, for a person to hold such interlocks. The FERC has regulations that identify the requirements for obtaining approval for interlocks (Part 45) and for reporting those interlocks (Part 46). In its July 19 Notice of Proposed Rulemaking, the FERC proposed, among other changes:
Comments on the proposed rule changes are due 60 days after their publication in the Federal Register. Following an opportunity to fully consider any comments filed, the FERC will take final action on the proposed rule changes.
The FERC notice should serve as a reminder to energy companies subject to FERC regulations of the need to remain vigilant in ensuring compliance with FERC regulations generally, including the interlock requirements. An effective compliance program helps provide that assurance and reduces the risk of violations. An effective compliance program also can mitigate penalties if violations do occur. If needed, Day Pitney's compliance team can bring to bear for its clients its experiences designing "best practices" compliance programs and procedures and providing compliance assessment, audit and legal services. If you have questions concerning these latest proposed changes in the FERC's rules or energy compliance issues more generally, please contact any of the attorneys listed in the sidebar of this alert.
Day Pitney LLP and Ansonia co-hosted an invitation-only 2019 Roundtable Event: The Balance of Power at the Grand Lobby of the Hippodrome in New York City.
On October 30, Alexander Judd will be moderating a panel, "Financing Renewable Energy Projects in New England," at the Future of Energy: What's the Deal?, the 20th Annual Connecticut Power and Energy Society (CPES) Conference and Exposition.
On October 16, Sophia Browning spoke on a breakout session, entitled “Drafting and Negotiating a Power Purchase Agreement,” at the 2019 Energy Bar Association Mid-Year Energy Forum in Washington, DC.
On October 7, Steven Cash spoke at "Cybersecurity: Tension Between Innovation and Security," an event presented by the Connecticut Power and Energy Society (CPES) and held at Yale University in New Haven, CT.
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Alexander Judd has been elected to serve as Vice President of the Connecticut Power and Energy Society (CPES), an association of energy professionals dedicated to generating information, sharing ideas and educating Connecticut about the energy industry.
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Firm Ranked Tier 1 Nationally for Energy Law and Trusts and Estates Law
Josh Cohen, chair of Day Pitney's Bankruptcy and Restructuring practice group was quoted extensively in an article, "FERC Rebuke Won't Be Last Word In PG&E Power Deals Fight," published by Law360.
Day Pitney Press Release
Partners Josh Cohen and Dave Doot were quoted in an analysis article, "PG&E's Ch. 11 Brings Rift With FERC Over Power Deals," published by Law360.