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Environmental

Commercial DG: Case for Financeable Contracts

Let's review factors influencing the development of distributed generation, with an emphasis on the need for financeable and deployable contracts on which DG can be financed, constructed and operated.
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"Hosts should consider the unbalanced allocation of risk and liability in the material terms  and conditions  and negotiate  accordingly." – Nicholas Giannasca
Author Bio: 

Nicholas Giannasca is a partner in the Energy and Environmental Practice Group of Davis Wright Tremaine LLP. In his 28 years of practicing, he has represented developers and hosts of commercial distributed generation facilities.

DG lenders and developers should consider standardizing a model form of energy service agreement.

Build to Order

Engineers and constructors adapt to serve an industry in transition.
From gas pipelines to PV arrays, the nation’s contractors are seeing growth in utility infrastructure. Fortnightly talks with executives at engineering and construction firms to learn what kinds of projects are moving forward, where they’re located, and what lies over the horizon.

Solution in Search of a Problem

Utilities seeking financing for environmental upgrades should look to the markets for debt and equity, rather than trying to securitize those costs.

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Figure 1 - Securitization by Purpose (% of Total)
Figure 2 - Risk Compression Caused By Securitization
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Transactions Business & Money
Author Bio: 

Thomas Feldman is a principal at Concentric Energy Advisors.

Securitization fails the test for financing environmental capex.

Least-Risk Planning

The D.C. Circuit’s CSAPR ruling reinforces the benefits of planning ahead and keeping options open. A diverse portfolio strategy reduces risks and costs.

Author Bio: 

Ken Colburn (kcolburn@raponline.org) and David Farnsworth are senior associates at the Regulatory Assistance Project (RAP). John Shenot is an associate, Camille Kadoch is a research and policy analyst, Elizabeth Watson is energy and environment fellow, and Rebecca Wigg is a communications associate at RAP.

The Homer City decision increases uncertainty—but rewards forward thinking.