Energy Power Marketing

Perkins Coie lawyers have played a leading role in shaping the rules and regulatory policies required for power marketing companies to successfully operate in the organized electricity markets. Over ten years ago our lawyers brought the first case before the Federal Energy Regulatory Commission (FERC) establishing and protecting this important wholesale electricity market segment. Since that time, our lawyers have represented the lead parties in dozens of subsequent FERC and ISO/RTO proceedings, establishing the core legal precedent in effect today for the power marketing sector.

In addition to representing a large share of the power marketing industry before FERC, our lawyers also represent trading companies in Stakeholder and other proceedings before the PJM system, ISO New England, Midwest ISO, New York ISO, California ISO, ERCOT and several other organized electricity markets. Thus, our lawyers are knowledgeable about the operations and rules affecting virtual/convergence trading, Up To Congestion trading, FTRs, export/import transactions, ICE transactions, Nodal Trading and the many other technical and regulatory market issues unique to this trading sector.

Some of the proceedings successfully handled by the Perkins Coie lawyers include:

• Trading Costs: Defeated ISO proposals to impose bid charges on virtual transactions; defeated many ISO proposals to impose high collateral and other unfair credit requirements on virtual transactions; established precedent requiring ISOs to allow virtual trading at the nodal level; and worked to defeat many ISO policies that would unduly discriminate against the power marketing sector.
• MISO RSG: Successfully obtained an order from the U.S. Court of Appeals (D.C. Cir., 2009) on a Petition for Writ of Mandamus directing FERC to act in the Midwest ISO proceeding on the allocation of supply related costs ("RSG"). As a result of this Order, the FERC changed its prior decision and directed MISO to refund all RSG amounts previously assessed against Virtual Supply transactions. This order saved power marketing companies over $200 million and allowed over 15 trading companies previously found in default to recommence trading.
• PJM Transmission Line Loss Allocations: Successfully obtained orders from FERC directing PJM to include Up To Congestion transactions in the allocation of the over $1 billion/year in transmission line loss overcollections. This case remains in litigation in order to potentially expand this relief to all types of virtual and export transactions.
• Minimum Net Worth: Worked with power marketing clients to successfully modify or defeat initiatives in PJM and ISO New England to impose minimum net worth requirements for trading in these ISO systems.
• FERC Enforcement: Successfully worked with power marketing companies on a broad range of enforcement investigations and proceedings. In most cases the companies have either been fully exonerated or the FERC investigations dropped. Regularly work with Independent Market Monitors, ISOs and FERC Staff to avoid regulatory compliance issues. Our lawyers also assist energy companies in establishing effective regulatory compliance programs and in training their energy trading personnel.

Our lawyers advise a broad range of power marketing companies--from small start-ups to large, international trading companies--on all issues affecting this growing new energy segment. In addition to working with trading companies to eliminate regulatory barriers and unfair cost allocations, we also advise power marketing companies on the full range of business issues affecting their operations. Our representation includes corporate formation and business structure issues; tax counseling, IRS appeals; regulatory compliance counseling and training; litigation; representation in all types of ISO stakeholder processes; employment contracts and disputes; asset transfers and sales; FERC enforcement proceedings and investigations and many other business issues.

The Perkins Coie team has unparalleled experience in successfully working with the unique interests and issues affecting power marketing companies.