Washington Energy Update - December 2012/January 2013

In This Issue:

- Congress Keeps Wind Credit Alive, Adds New “Begin Construction” Requirement

- FERC Approves NERC’s “Bright-Line” BES; Revised Rules of Procedure

- Exercising Its Muscle—Enforcement Actions by the Federal Energy Regulatory Commission in 2012

- Energy Department–Commissioned Report Supports Increasing LNG Exports

Energy Highlights:

- On January 17, 2013, FERC issued a policy statement permitting merchant transmission developers and non-incumbent, cost-based, participant-funded transmission developers to allocate up to 100 percent of a project’s capacity to anchor customers if developers (1) engage in a broad solicitation of interest from potential customers and (2) demonstrate that FERC’s solicitation, selection and negotiation process criteria set forth in the policy statement are satisfied.

- FERC issued a notice on January 18, 2013, stating that the entity and tag code “FERC” should be used to designate FERC as an addressee on applicable e-Tags. In Order No. 771, FERC amended its regulations to require e-Tag authors and balancing authorities to take appropriate steps to ensure FERC can access e Tags used to schedule the transmission of electric power interchange transactions in wholesale markets. The requirement goes into effect March 15, 2013.

- The Department of Energy’s recently released LNG study is creating unlikely bedfellows, with the manufacturer coalition America’s Energy Advantage, environmental groups and several influential congressmen attacking the study and generally opposing LNG exports.

Please see full newsletter below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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