Transmission
Troutman Sanders is the leading U.S. law firm regarding transmission acquisitions, development, EPC contracts, pricing, open access tariffs, siting and other related matters. The firm has significant experience representing private and public utilities, as well as financial institutions and contractors. Our lawyers practice before the Federal Energy Regulatory Commission and state regulatory commissions and have a long track record of success regarding regulatory solutions to meet its clients’ business objectives. We are known for ground-breaking approaches that maximize the value of clients’ assets and business plans in the transmission market. Perhaps most importantly, we understand how the grid works -- from control area operations, to reliability standards, to ancillary services and planning. Our in-depth knowledge of system operations separates us from our competitors.
Transmission Acquisitions and Project Development
Creation of International Transmission Company. The firm was lead counsel in the creation of International Transmission Company (“ITC”) from DTE Energy, and the sale of that company to private equity investors including Kohlberg Kravis & Roberts. Our client, the seller of ITC, received a record price for the asset (approximately 1.8x book value).
Transfer of Transmission Assets to ATC. The firm represented Wisconsin Energy on the transfer of its transmission assets to American Transmission Company.
Representation of Foreign Transmission Company. The firm represents a foreign transmission EPC company in identifying and securing transmission project opportunities in the United States.
Ameren Purchase of T&D Assets. The firm represented Ameren in the purchase of Illinois Power’s transmission and distribution assets.
Underwriter Representation. The firm represented the lead underwriter regarding a proposed transmission company IPO.
Transmission Project Development. The firm negotiated 138 kV transmission line undergrounding and river-crossing replacement agreement with condominium tower developer and customer-built line extension agreements for main-grid transmission facilities and distribution facilities on behalf of an investor-owned electric utility.
SeTrans RTO Project Financing. The firm represented a major transmission owner and took the lead on behalf of all of the owners in negotiating and structuring the project financing of assets to be used by an independent system administrator of a proposed regional transmission organization among nine transmission owners in the southeastern United States.
Asset Dispositions. The firm negotiated numerous asset dispositions involving sales of transformers, substations, pole lines, and associated rights-of-way to customers and public power entities on behalf of investor-owned electric utilities.
Transmission Regulatory Experience
- Represented Midwestern utility regarding regulatory and liability issues associated with August 2003 black-out.
- Successfully obtained first “innovative transmission rate” for International Transmission Company (i.e., transmission rate set based on non-cost of service methodology).
- Represents the California Independent System Operator regarding the implementation of long-term firm transmission rights and the redesign of its competitive wholesale energy and ancillary service markets using transmission congestion charges based on location-based marginal pricing.
- Represented a large Midwestern utility in FERC litigation and settlement proceedings involving transmission pricing and transmission rate design for the Midwest (MISO) and Mid-Atlantic (PJM) energy markets.
- Represented Ameren regarding implementation and conversion from stated rate to a formula transmission rate.
- Represented Illinois Power in litigated FERC case regarding standards for transmission customer self-supply of ancillary services.
- Represented Midwestern utility in approval of joint operating agreement between regional transmission organizations (Midwest ISO and PJM).
- Represented large Midwestern utility and energy trading company in FERC proceedings relating to development of regional transmission organizations ("RTO") in the Midwest. Proceedings, including litigation and settlement procedures on inter-RTO transmission rates, lost revenues and proposals to establish a Seams Elimination Charge/Cost Adjustment/Assignment ("SECA") rate mechanism, and "hold harmless" requirements.
- Obtained precedent-setting FERC approval of investor-owned utility's plan to withdraw from an RTO and utilize third party tariff administration. Duties included preparation of OATT, drafting contracts with third party administrators, negotiating withdrawal from the RTO and negotiating withdrawal issues with transmission customers.
- The firm provides counsel and advice to electric utilities regarding the establishment and enforcement of new mandatory North American reliability standards associated with the Energy Policy Act of 2005.
- One of the firm’s attorneys successfully led group of eight utilities in obtaining regulatory approvals to restructure $3 billion electric market in New York State, which resulted in FERC approval of a comprehensive restructuring of the wholesale electricity market, including the formation of a non-profit independent system operator, implementation of a congestion management pricing system, and the establishment of auctions for financial hedges. Prepared all related transmission tariffs and agreements.
- One of the firm’s attorneys provided regulatory counsel to utility in obtaining approval of Grid Florida. Representation included all aspects of establishing the regional organization from commencement of stakeholder process; to advising client regarding congestion management and market models, transmission and ancillary service pricing options, and operational and planning issues; to drafting tariffs and agreements and participating in the mediation process.
FERC Enforcement Experience
- Provided counsel and assistance with numerous utility audits and investigations by FERC’s Office of Enforcement (formerly the Office of Market Oversight and Investigations) regarding compliance with FERC’s Standards of Conduct, Code of Conduct, and OASIS regulations and compliance with the utilities’ open access transmission tariffs.
- Advised utilities on Standards of Conduct compliance issues and training programs; developed Standards of Conduct and Code of Conduct training materials.
- Coordinated and advised companies regarding strategy of presenting issues to the Office of Enforcement.
- Reviewed and prepared data request responses to the Office of Enforcement.
- Provided guidance in spotting issues that would raise concerns with the Office of Enforcement and coordinated with several companies to address these issues.
- Provided guidance and strategic advice for meetings with Office of Enforcement Senior Staff.
- Led review of transmission transactions and compliance with OATT and FERC regulations.