• Rejecting Executory Power Contracts in Bankruptcy Cases: Jurisdictional Authority, But Has the Standard Changed?
  • October 14, 2004 | Author: Bryan L. Elwood
  • Law Firm: Greenberg Traurig, LLP - Dallas Office
  • On August 4, 2004, a three-judge panel of the Fifth Circuit Court of Appeals issued an opinion in the Mirant Corporation bankruptcy case reversing a federal district court (the "District Court") decision holding that it was powerless to approve Mirant's proposed rejection of a wholesale contract for the interstate sale of electricity. The Fifth Circuit ruled that the District Court could authorize Mirant's rejection of the executory power contract regardless of the Federal Energy Regulatory Commission's ("FERC") otherwise exclusive jurisdiction over the rates charged in the contract.