American Electric Power

People (January 2012)

American Electric names new vice presidents; Northeast Utilities announces executive changes; Southern Nuclear and Peabody Energy name new vice presidents; plus senior staff changes at IDACORP, Georgia Power, Conservation Services Group, and others.

Vendor Neutral

(January 2012) Hawaiian Electric selects Renewable Energy Group to supply biodiesel for combustion turbine; GE signs long-term services agreement with Comision Federal de la Electricidad; Nissan North America selects Coulomb Technologies to provide EV charging infrastructure locations; Siemens agrees to acquire eMeter; plus announcements and contracts involving AES Corp., Maui Electric, KCP&L, and others.

Climate Exposure

A state supreme court ruled last fall that damage resulting from climate change allegedly caused by power plant emissions was “reasonably foreseeable,” and therefore litigation expenses were not covered under a general liability insurance policy. The ruling creates an unworkable standard and raises questions about insurance coverage for climate-change liabilities.

While the policyholder was left adrift by Steadfast, the climate change insurance ship certainly hasn’t sailed.

On Sept. 16, 2011, the Supreme Court of Virginia became the highest state court in the country to rule on the issue of insurance coverage for climate-change claims under a general liability policy. In AES Corp. v. Steadfast Ins.

People (December 2011)

Iberdrola USA names new vice presidents; Michigan Governor appoints new commission chair; AGA and INGAA name new chief executives; plus senior staff changes at American Electric Power, Dynegy, GDF SUEZ, and others.

Vendor Neutral

(December 2011) Lafayette Utilities System selects Elster’s EnergyAxis as its AMI system; ABB wins contract from Hydro-Quebec; Sapphire Power Holdings acquires gas-fired power generation from Morris Energy Group; Consumers Energy awards contract to Babcock & Wilcox; plus announcements and contracts involving BP Wind Energy, Abengoa Solar, Samsung C&T and others.

Transmission Rate Incentives

In an October order, the Federal Energy Regulatory Commission (FERC) trimmed the authorized rate incentive for the RITELine transmission project by one-third. The action prompted Commissioner Moeller to ask whether the commission is retreating from its incentive policy on needed transmission lines.

FERC’s move might appear calculated to send a message to the power industry.

The Federal Energy Regulatory Commission (FERC) in mid-October granted a trimmed-down set of rate incentives for the proposed $1.6 billion RITELine transmission line project.

People (November 2011)

Exelon and Constellation announce post-merger executive lineup; Xcel Energy names new CFO and general counsel; Organization of MISO States elects new officer; plus senior staff changes at FirstEnergy Nuclear Operating, American Electric Power, Alterra Power, and others.

Battle Lines:

2011 Groundbreaking Law & Lawyers Survey and Report

With a flurry of major new environmental regulations, the Environmental Protection Agency (EPA) is altering the power generation landscape. But will the new federal rules survive court challenges—to say nothing of next year’s national elections? Fortnightly's Michael T. Burr considers the controversy over new environmental standards. PLUS: Top Utility Lawyers of 2011.

Greenhouse Chill

Has the Supreme Court frozen climate change litigation?

The Supreme Court’s decision in American Electric Power v. Connecticut strongly limits private nuisance actions against greenhouse gas (GHG) emitters by keeping these cases out of federal court. But the AEP decision won’t stop lawmakers from enacting new GHG regulations, and it won’t prevent plaintiffs from suing emitters in state courts.

Bench Report: Top Ten Legal Decisions of 2011

1. ‘Policy’ Guides the Grid; 2. Carbon Not a Nuisance (Yet); 3. Gigabucks for Negawatts; 4. A MOPR, Not a NOPR; 5. Ramp Up the Frequency; 6. Cap-and-Trade Still Lives; 7. Cyber Insecurity; 8. Korridor Killer; 9. The Burden Not Shared; 10. Ozone Can Wait.