Project Finance NewsWire

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Publication August 2016

The Project Finance NewsWire reports on new developments affecting the power sector, gas pipelines, LNG terminals, energy storage facilities, energy efficiency, biofuels, gasification, water, toll roads, bridges, ports, stadiums and other infrastructure. We report from the perspective of a law firm down in the trenches on deals. The NewsWire is published every other month and goes to 46,000 people.

In this issue

Corporate PPAs

Utilities are working to squash net metering, but missing the larger picture...

August 11, 2016

Another Potential Offtaker: Community Choice Aggregators

Community choice aggregation is a growing trend in US energy procurement that could increase demand for renewable energy...

August 11, 2016

Community Solar Financing Issues

Community solar is a form of independent power project whose output is sold at retail rates. The financing community is just starting to get its arms around the...

August 11, 2016

Loan Agreements: Political Risk Default Trigger Needed?

The recent coup attempt in Turkey is causing lenders to think about including in loan agreements a political risk clause that allows the lenders to call an event...

August 11, 2016

New Trends: View From The Investment Bankers

Five investment bankers had a wide-ranging discussion at the Chadbourne global energy and finance conference in early June about new trends in the market. The...

August 11, 2016

IRS Updates Tax Treatment of Interconnection Payments

The Internal Revenue Service reaffirmed in June that utilities do not have to report most payments from independent generators to reimburse for the cost of grid...

August 11, 2016

Merchant Gas Projects: How Many More?

Merchant gas-fired power projects in ERCOT, PJM and ISO-New England helped carry the North American project finance market in 2015. Many banks are feeling flush...

August 11, 2016

Uncertainty and Surplus Allowances Dog California Cap-and-Trade Program

By Brandon Charles, Laura Norin, and William Monsen, with MRW & Associates, LLC in Oakland, California Prices for greenhouse gas emission allowances under the...

August 11, 2016

Tax Equity Trends

Three tax equity investors and the lawyer who handles energy issues on the elite tax policy staff at the US Department of the Treasury talked at the annual...

August 11, 2016

Guarantees for Investments in Emerging Markets

Emerging markets offer new and exciting investment opportunities, but risks accompany the potential rewards...

August 11, 2016

The Rooftop Solar Business Model in Transition

Where is the rooftop solar business model headed with business possibly shifting to direct sales, analysts pressing for positive cash flow and at least 10 states...

August 11, 2016

Environmental Update

The US Environmental Protection Agency filled in details in late June about how it will reward generators in states that move early to reduce carbon emissions...

August 11, 2016

In other news

Four-Year Lookback Pain

A four-year lookback rule is causing pain for some US renewable energy developers...

August 11, 2016

Hatch Presses on Tax Basis Issues

Treasury and the IRS continue taking flak from Senator Orrin Hatch (R-Utah), chairman of the Senate tax-writing committee, about the Treasury cash grant program...

August 11, 2016

House GOP Corporate Tax Reform Plan

House Republicans released a tax plan in late June that they hope to put through the next Congress if Republicans remain in control. The Republicans enjoy a large...

August 11, 2016

Tax Credits Proposed for Energy Storage

Energy storage facilities would qualify for tax credits under bills introduced in the House and Senate...

August 11, 2016

Municipal Ownership of Power Plants

A municipal utility can own part of a power plant through a partnership with a private developer and issue tax-exempt bonds to buy its interest in the partnership,...

August 11, 2016

Minnesota Carbon Statute Invalidated

Minnesota cannot bar Minnesota utilities from signing new long-term-power contracts to buy electricity from fossil-fuel power plants in other states, a US appeals...

August 11, 2016

IRS Addresses an Inverted Lease Issue

Inverted leases will produce less benefit for some tax equity investors...

August 11, 2016

Court Orders FERC to Revisit Pipeline Charges

Gas-fired power plants that buy gas at the field and then pay a pipeline to transport it may get a break on transportation charges, at least by pipelines that are...

August 11, 2016

Landfill Tax Equity Deal Dinged

Tax equity investors did not qualify for most of the tax credits they claimed on 24 landfill gas projects, the US Tax Court said. Two trusts formed to own the...

August 11, 2016

Purchase Money Note Not Real Debt

A purchase money note given to buy an interest in a partnership that owned geothermal projects was not a real debt, the US Tax Court said in late July. Lausanne...

August 11, 2016

Electricity Not Tangible Property

Oregon cannot tax part of the income earned from sales of electricity and gas that pass through the state on the way to customers in California...

August 11, 2016

Stored Gas and Property Taxes

Oklahoma cannot collect property taxes on natural gas temporarily stored in the state by interstate pipelines while awaiting shipment to customers in other states,...

August 11, 2016

Interstate Pipelines and Property Taxes

Tennessee can subject interstate pipelines to high property tax rates as utilities, a Tennessee court said in late July...

August 11, 2016

Calculating Gain With Contingent Purchase Price

A contingent purchase price in an installment sale makes calculation of the seller’s gain complicated...

August 11, 2016


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