Energy

Our lawyers have helped to finance and develop a wide range of energy facilities across the globe. K&L Gates has represented numerous clients in the evaluation and acquisition of sites, and the financing, permitting, and development of both utility-owned and independent power projects. We have advised and represented clients in the development of electric transmission facilities, petroleum product and natural gas gathering systems and pipelines, and natural gas storage facilities, including an innovative rapid-delivery salt cavern gas storage facility. In the alternative and renewable energy sectors, our team has participated in siting, property acquisition, development, and financing for many wind, solar, biomass, and other renewable energy projects.

We have successfully represented the sponsors, developers, or promoters of projects as well as commercial and development banks, investors, vendors, landowners, contractors (engineering, procurement, and construction (EPC) and operation and maintenance (O&M)), operators, and equipment suppliers. Our lawyers advise on all phases of the project – from the initial concept, government and regulatory issues, structuring, risk management, and development through to bidding, financing, engineering and construction, and beyond.

In handling complex project development and finance transactions, we draw upon the knowledge and skills of our lawyers in related practice areas. This multidisciplinary, firmwide approach gives our clients seamless access to focused advice so that they can make the best decisions for their projects and execute those decisions in the most effective manner. Our bench strength in risk management and insurance coverage, tax, real estate, environmental permitting, regulatory matters, and public policy in multiple jurisdictions enables us to provide high-quality representation from the earliest phases of due diligence through land acquisition, construction, operation, transfer, and decommissioning of projects.

We represent energy and utility clients in the full range of issues concerning facility operations and environmental compliance. We have represented public and private entities in connection with the development and long-term operation of hydroelectric, thermal, wind, and waste-to-energy generation facilities; transmission facilities; water and wastewater facilities; and gas and oil pipeline and production facilities. Beyond traditional permitting and compliance activities, our lawyers have significant experience in the development and implementation of market-based environmental compliance programs, including the negotiation and completion of transactions involving water quality and air emissions credit trading.

Our practical approach to resolving operating, environmental, and related challenges has facilitated the successful completion and continued operation of many projects. We help our clients earn public recognition for their civic responsibilities, while enabling them to achieve their business goals quickly and cost effectively.

Mergers and Acquisitions
K&L Gates lawyers have represented numerous clients in the purchase and sale of renewable energy, gas, coal, and nuclear electric generating facilities, and other utility facilities. We have represented both sellers and purchasers in auctions of entire energy companies, fleets of electric generating facilities, and individual projects, as well as in the negotiation and completion of other utility asset transfers.

We have represented industrial hosts or project developers in the acquisition and disposition of energy facilities located at pulp and paper facilities, municipal waste landfills, petrochemical facilities, and other industrial facilities. In addition, the firm has assisted various energy and utility clients in the formation of joint ventures, alliances, and public/private partnerships.

Energy Sales and Purchases, Hedging Transactions, and Other Commercial Transactions
K&L Gates lawyers have negotiated and drafted numerous wholesale and retail electric power and natural gas purchase and sale, energy derivatives, electric transmission, interconnection, operation and maintenance, gas transportation, advanced billing, licensing, and other agreements. These contracts involve a wide range of transactions, including long-term and short-term energy and capacity purchases and sales. We also represent a wide range of clients in the purchase and sale of renewable energy credits, verified emissions reduction certificate, emissions allowances, and other environmental trading products.

Our clients in these transactions include investor-owned and public power utilities, independent power producers, power marketing companies, banks, investment banks, local distribution companies, wholesale and retail customers, and telecommunications services providers (including providers that are unregulated affiliates of electric utilities).

Energy Administrative and Litigation Matters
K&L Gates lawyers have represented clients in judicial and administrative proceedings involving a wide variety of issues, including challenges to market-based rate authority, controversies regarding regulated cost allocations and transmission rate design, breaches of long-term energy supply contracts, termination of purchase contracts with qualified facilities, disputes over pricing provisions of qualified facility power purchase contracts, disputes over rights to serve energy customers, oil and gas royalty disputes, and coal bed methane and salt dome storage cavern disputes.

The firm regularly appears in proceedings before state utilities commissions and before various federal agencies, including the Department of Energy (DOE), the Federal Energy Regulatory Commission (FERC), the Federal Trade Commission (FTC), the U.S. Department of Justice (DOJ), the Bonneville Power Administration, the Western Area Power Administration, and the Federal Communications Commission as well as international equivalents.

Regional Transmission Organizations and Regional Energy Initiatives
K&L Gates has represented clients in connection with the formation and operation of U.S. regional transmission organizations, including the PJM Interconnection, the New York ISO, ISO New England, the Midwest ISO, and the California ISO. We have also worked with other regional initiatives such as the Western Electricity Coordinating Council Reliability Management System and the Western Interconnection Organization. The firm has participated in market reform and reorganization initiatives in several regions of the United States. In addition, the firm has taken a leading role in forging multiparty contractual arrangements governing facilities such as the Four Dam Pool and Bradley Lake projects in Alaska and the mid-Columbia dams in Washington.

Utility Regulation and Restructuring
K&L Gates represents a diverse group of investor-owned utility and public power utility clients, including gas, electric, water, sewer, transportation, and telecommunications utilities. Our services include advice on restructured utility operations, the sale and purchase of generating assets, and strategies for success in newly competitive areas of utility operations. We have assisted utility clients in diversifying their operations through acquisitions, geographic expansions, and the development of ancillary services.

Our lawyers have broad experience in restructuring public and private utility entities. For example, the firm recently assisted a large investor-owned utility in formulating, obtaining the necessary regulatory approvals for, and implementing a comprehensive corporate restructuring. As a result of our extensive municipal law experience, we have coordinated efforts around the United States and internationally  to create or reorganize municipal utilities. We also represent public and private clients in forming entities to finance, construct, own, and operate particular utility facilities.

Hydropower Development, Relicensing, and Compliance
K&L Gates lawyers have had substantial involvement in drafting and negotiating agreements among hydropower project owners for coordinated development, finance, and operation of hydropower projects. Our lawyers assist clients with all phases of a hydropower project including procurement, contract administration, close-out strategies and structuring and documentation for project finance.

K&L Gates lawyers have had substantial involvement in numerous major FERC relicensing proceedings, negotiations, and settlement agreements for hydropower projects. These include ongoing efforts to develop and relicense hydroelectric projects, advice concerning license compliance at various hydroelectric facilities, and advice on due diligence and license transfer matters.

K&L Gates lawyers have spearheaded the early and successful integration of relicensing obligations under the Federal Power Act with Endangered Species Act requirements, Clean Water Act requirements, tribal obligations, and other federal and state environmental authorities.

Energy Antitrust and Trade Regulation
Our lawyers have special experience in the application of antitrust laws and competition policy to regulated and recently deregulated industries, particularly in the energy, transportation, communications, and solid waste industries. The firm regularly represents clients in civil and criminal investigations and enforcement actions, transactional matters, and federal and state regulatory proceedings involving competition issues. We work closely with economists in the preparation of market power analyses for use in federal and state regulatory proceedings, including at FERC. We also routinely represent clients in connection with related antitrust and trade regulation issues, including during the Hart-Scott-Rodino Premerger Notification review process, and, where required, responses to civil investigative demands issued by the U.S. Department of Justice and the Federal Trade Commission.

Energy and Utility Legislation and Policy Development
K&L Gates has been a key participant in developing state and federal legislation on energy, telecommunications, water, and solid waste matters. We help our energy clients achieve their objectives in numerous significant legislative proceedings, including proceedings involving stranded cost, retail open access, and tax reform legislation. K&L Gates lawyers had substantial involvement in negotiating and drafting Pennsylvania’s retail electric restructuring legislation and regulations and the U.S. federal Northwest Power Planning and Conservation Act. In addition, the efforts of our lawyers have strengthened the ability of public power utilities to obtain tax-exempt financing and have broadened the authority of such utilities to produce, purchase, and sell energy.

K&L Gates lawyers have been actively involved in the development of renewable energy portfolio legislation, state assistance for innovative energy projects, and state regulations and policies relating to mercury emission control, water management, and beneficial reuse of coal combustion byproducts.

K&L Gates lawyers have been lead counsel in major litigation before regulatory bodies and state courts challenging state and local tax assessments on large power generating facilities. Such challenges have ranged from property tax assessments to real estate transfer tax matters. Working closely with specialized power plant appraisers, we have developed and presented tax assessment challenges before applicable bodies and obtained significant tax reduction judgments and settlements for clients in this area. In various project development efforts, we have counseled project owners in structuring projects and pursuing special tax treatment arrangements, as well as in obtaining favorable interpretations and rulings regarding exemptions from transfer, sales, and use taxes.