News & Analysis as of

Cost Allocation

Troutman Pepper Locke

Order No. 1920-B Affirms FERC’s Long-Term Transmission Planning and Cost Allocation Rule

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On April 11, 2025, FERC issued Order No. 1920-B, which clarified and maintained key requirements from Order No. 1920-A regarding long-term transmission planning and cost allocation. FERC clarified that transmission providers...more

Troutman Pepper Locke

FERC Accepts SPP’s Tariff Revisions Regarding Distribution of Make-Whole Payments for Self-Committed Resources

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On March 27, 2025, FERC approved Southwest Power Pool, Inc.’s (SPP) tariff revisions to remove the opportunity for resources that self-commit during the Reliability Unit Commitment Process (RUC) to avoid contributing to RUC...more

Clark Hill PLC

Clark Hill 2025 Commercial Real Estate Outlook: Hybrid Work Models and Lease Restructuring

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Although the COVID-19 pandemic has ebbed from the daily lives of workers, its impact on hybrid work continues. While no consensus has emerged, the hybrid work model, which requires splitting the work week between going into...more

Holland & Knight LLP

FERC Takes Action on Co-Located Load in PJM

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The Federal Energy Regulatory Commission (FERC or Commission) on Feb. 20, 2025, initiated a review of issues associated with the co-location of large loads (such as data centers) at generating facilities in the PJM...more

Troutman Pepper Locke

FERC Institutes Show Cause Proceeding on Co-Location Issues in PJM

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On February 20, 2025, FERC found that the PJM Interconnection, L.L.C. (“PJM”) Open Access Transmission Tariff (“OATT”) appears to be unjust and unreasonable because it does not address with clarity or consistency the rates,...more

Wiley Rein LLP

Capping It All Off: NIH Caps Indirect Rates for Grants

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SUMMARY: On February 7, 2025, the Office of the Director for the National Institutes of Health (NIH) issued a Notice (Notice No. NOT-OD-25-068) imposing a cap of 15% on the indirect cost rates that can be charged to the...more

DarrowEverett LLP

Maximizing Value: The Art of Purchase Price Allocation in Real Estate Deals

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When a business is sold, the most important overall aspect of negotiations between a cautious buyer and determined seller may be due to the agreed-upon purchase price for the business. However, when the buyer is purchasing...more

Paul Hastings LLP

FERC Issues Landmark Transmission Planning Order

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On May 13, 2024, the Federal Energy Regulatory Commission (FERC) issued Order No. 1920, its long‑awaited transmission planning and cost allocation final rule (Transmission Order) regarding proposed reforms to the regional...more

Winstead PC

Trustee’s Ability To Retain And Compensate Attorneys In Texas - Presentation

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David F. Johnson presented his paper titled “Trustee’s Ability To Retain And Compensate Attorneys In Texas” to the Texas State Bar’s 48th Annual Advanced Estate Planning and Probate Course on June 13, 2024, in Houston, Texas....more

Troutman Pepper Locke

High-Level Summary of FERC Order No. 1920 on Transmission Planning and Cost Allocation

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On May 13, the Federal Energy Regulatory Commission (FERC or Commission) released its Order No. 1920 (Final Rule) to reform its policies regarding Regional Transmission Planning and Cost Allocation.1 The Final Rule follows...more

Vinson & Elkins LLP

FERC Issues Final Rules on Electric Transmission Planning, Cost Allocation, and Backstop Authority Evaluation Procedures

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On May 13, 2024, the Federal Energy Regulatory Commission (“FERC” or “Commission”) established “a new foundation” upon which new electric transmission facilities can be planned, paid for, and built. The Commission did so...more

Perkins Coie

FERC Issues Historic Rules on Regional Transmission Planning, Cost Allocation, and Siting

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At a special meeting on May 13, 2024, the Federal Energy Regulatory Commission (FERC) issued two eagerly awaited final rules regarding transmission reform. The first rule, Order No. 1920, mandates changes to the regional and...more

Jenner & Block

Client Alert: FERC Issues Final Rule on How to Plan and Pay for Electricity Transmission

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On May 13, 2024, the Federal Energy Regulatory Commission (FERC) issued its long-awaited final rule on regional transmission planning and cost allocation, Order No. 1920. The final rule’s release follows a notice-and-comment...more

Opportune LLP

Oil & Gas Valuation: 5 Questions to Ask When Stock Is Used As Consideration

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Over the last several years, an acquiring company’s stock has become a more commonly used currency in upstream oil & gas merger and acquisition transactions. This trend can be attributed to its benefits, such as providing...more

Wiley Rein LLP

Massachusetts Federal Court Holds Defense Costs Must Be Reasonably Allocated Between Insured and Non-Insured Parties

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A Massachusetts federal court, applying Massachusetts law, has held that the allocation of legal fees between two corporations is determined based on what reasonably would have been negotiated had each party in the joint...more

Troutman Pepper Locke

FERC Reverses Course, Rejects SPP Byway Cost Allocation Proposal for Second Time

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On July 13, 2023, FERC on rehearing set aside its prior order that had accepted Southwest Power Pool, Inc.’s (“SPP”) proposal to establish a case-by-case process to allocate, on a regional, postage-stamp basis, all of the...more

Troutman Pepper Locke

D.C. Circuit Backs FERC in New York Cost Allocation Dispute, Giving FERC Broad Deference under the Rule of Reason

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On July 7, 2023, the U.S. Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) issued an opinion rejecting petitioner Hecate Energy Green County 3 LLC’s (“Hecate”) claim that the New York Independent System...more

Goodwin

New Costs For Landlords Due To Carbon Dioxide Cost Allocation Act

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The Lower House of the German Parliament (Deutscher Bundestag) passed the Act on the Allocation of Carbon Dioxide Costs (Carbon Dioxide Cost Allocation Act - CO2KostAufG on August 24, 2022, printed matter (Bundesdrucksache)...more

Bracewell LLP

FERC Issues Proposal To Overhaul Transmission Planning and Cost Allocation

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On April 21, 2022, the Federal Energy Regulatory Commission (“FERC” or “Commission”) issued a much-anticipated Notice of Proposed Rulemaking (“NOPR”) proposing changes to its transmission planning and cost allocation policies...more

Vinson & Elkins LLP

FERC Proposes Major Reforms and Commences a Multi-Pronged Approach to Tackle Transmission Planning and Cost Allocation

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On April 21, 2022, the Federal Energy Regulatory Commission (“FERC” or “Commission”) issued a Notice of Proposed Rulemaking (“NOPR”) aimed at reforming long-term regional transmission planning. ...more

Husch Blackwell LLP

FERC’S Next Big Electric Initiative

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On April 21, 2022 a split Federal Energy Regulatory Commission (“FERC”) approved 4-1 a Notice of Proposed Rulemaking (“NOPR”) on transmission planning and cost allocation. Issued pursuant to section 206 of the Federal Power...more

BCLP

Landlord Tenant Dispute: Tenant’s liability to make good damage and defects after the expiry of the tenancy

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What is the allocation of responsibility for damage and defects after the expiry of a tenancy - The dispute in So Hon Ming Francis v Cheung Lau Shau Chun and Another ([2021] HKDC 1494, DCCJ 367/2019, 29 November 2021)...more

Wiley Rein LLP

Policy Requires Allocation of Defense Costs Based Upon Parties’ Relative Legal Exposure

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The United States District Court for the Central District of Illinois has held that an insurance policy requires allocation of defense costs based on the parties’ relative legal exposure if it clearly and unequivocally...more

Husch Blackwell LLP

Updates on FERC Transmission Planning Process Reform

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Regulatory Update – FERC transmission planning process reform- On July 15, 2021, the Federal Energy Regulatory Commission (“FERC”) issued an Advanced Notice of Proposed Rulemaking (“ANOPR”) to broadly examine FERC’s...more

Opportune LLP

Valuation Perspective: Top 3 Topics Energy Companies Should Consider At Year-End

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Here are three valuation topics energy companies should consider as they plan their year-end meetings....more

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