• Tax-Efficient Capital Vehicles for Unregulated Utilities: REITs, MLPs and Up-Cs Considered
  • May 17, 2013 | Authors: Nickolas Gianou; David F. Levy; Sean M. Shimamoto
  • Law Firms: Skadden, Arps, Slate, Meagher & Flom LLP - Chicago Office ; Skadden, Arps, Slate, Meagher & Flom LLP - Washington Office
  • Over the last several years, a confluence of political and market developments have made capital for renewable energy projects harder to come by, which has affected the ability of unregulated affiliates of public utilities (“Unregulated Utilities”) to finance or refinance new and existing renewable energy projects. As unregulated utilities search for capital, they increasingly are considering the use of tax-efficient public capital vehicles such as real estate investment trusts (REITs), master limited partnerships (MLPs), and umbrella partnership C corporations (UpCs). This memorandum will compare and contrast those three vehicles and explain how and why those vehicles can play a helpful role in satisfying the current and future capital needs of unregulated utilities.