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FERC Asserts Jurisdiction over Bundled REC Sales by Sean A. Atkins
Alston & Bird LLP - Washington Office
Kenneth G. Jaffe
Alston & Bird LLP - Washington Office
Michael N. Kunselman
Alston & Bird LLP - Washington Office
Stephen C. Palmer
Alston & Bird LLP - Washington Office
Andrea Wolfman
Alston & Bird LLP - Washington Office
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May 10, 2012
Previously published on May 8, 2012
The Federal Energy Regulatory Commission (FERC) recently issued an order to clarify the circumstance under which its regulatory authority extends over sales of Renewable Energy Certificates (RECs); specifically, when such a sale is bundled with the sale of electric energy at wholesale. The order, WSPP Inc., applies FERC’s rationale for regulating emissions allowances when bundled with the sale of electric energy to the developing REC markets. It serves as a reminder to those negotiating agreements for the sale of energy and the associated RECs that the structure of those transactions can determine whether the REC sale is subject to FERC’s jurisdiction.
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