Energy & Commodities Regulation & Compliance

"Provides invaluable assistance in the energy space on reforms under the Dodd-Frank Wall Street Reform and Consumer Protection Act" - Legal 500

 

Cadwalader's Energy & Commodities lawyers understand regulatory risk in both developed and developing markets and have deep experience and know-how to address relevant issues across agencies, industries, geographies and products. We have extensive experience representing clients in all types of regulatory matters, including those before the Federal Energy Regulatory Commission (FERC), the U.S. Commodity Futures Trading Commission (CFTC), the U.S. Department of Energy (DOE), the North American Electric Reliability Corporation (NERC), multiple state public utility commissions (PUCs) as well as regional transmission organizations (RTOs) and independent system operators (ISOs).

We also represent energy and commodity companies in petitions for review of FERC and CFTC orders and rulemaking efforts before the federal circuit courts of appeal and counsel clients on challenges to agency proceedings, rules and decisions. The group's experience with and understanding of agency proceedings and rulemakings, along with its understanding of the implications of judicial review, position it as a leader in counseling clients on these important administrative matters.

Cadwalader's regulatory experience is deployed in a wide variety of energy and commodity transactions including mergers and asset dispositions as part of due diligence and to achieve timely approvals.

Commodity Futures Trading Commission With both lawyers and a non-lawyer professional advisor who have worked for the CFTC, the Energy & Commodities Group advises financial institutions, hedge funds, energy companies, and commodity trading companies regarding Commodity Exchange Act (CEA) and CFTC regulations governing trade practices, registration requirements and exemptions, reporting and recordkeeping requirements. The group assists clients with the development of new legislation regarding regulatory powers in this area. The group also provides compliance training and manuals that address CFTC-related issues.

We also advise clients with respect to CFTC enforcement and government investigations. Our enforcement defense lawyers regularly represent commodity traders and companies in investigations and litigation involving physical, over-the-counter, and regulated futures trading. They are experienced in civil and criminal proceedings that involve allegations of fraud, manipulation, false reporting, and multiple other regulatory violations.

Federal Energy Regulatory Commission: Cadwalader's Energy & Commodities group has participated in hundreds of FERC proceedings and has extensive experience in electricity and natural gas regulatory matters before FERC. Our lawyers also have worked on more than a dozen petitions for review of FERC orders and rules in the D.C. Circuit.

With respect to electricity matters, our lawyers have been actively involved in the regulatory aspects of structuring and facilitating energy-related transactions for every wholesale market in the United States, including market-based rate authorizations, complaint proceedings, market design and scheduling, mergers and acquisitions, transfers of jurisdictional assets, changes in status, interlocking directorate and public holding company issues, and reporting matters. We also assist generation projects before FERC and ISO/RTOs regarding development and compliance issues.

We have a robust natural gas regulatory practice before FERC. We routinely represent shippers in regulatory proceedings concerning interstate pipeline regulations and service, rate-setting and capacity assignment and release, tariff modifications, rulemakings, enforcement matters and asset management requirements. We also advise clients regarding various interstate oil pipeline access and rate issues as well as with hydropower licensing, enforcement and compliance requirements.

We provide highly interactive and practical compliance training and manuals for energy and commodities clients, including front-office traders and schedulers, and mid-office and back-office personnel. We also provide advice regarding enforcement issues related to energy and commodity trading and practices.

North American Electric Reliability Corporation:  Our lawyers regularly advice generation and marketing entities regarding NERC audit and enforcement matters in various regions, including RFC, TRE and NPCC regional entities. We have advised clients on NERC compliance including Critical Infrastructure Protection standards.

State PUCs & Competitive Retail Energy Markets:  Our lawyers advise clients in all aspects of competitive retail electricity and natural gas markets and related products throughout the United States, including licensure, market structure, regulatory compliance, asset transfer and administrative practice. They assist marketers, aggregators, traders, generation and transmission developers, and industrial and commercial customers regarding restructured markets in numerous states, including Ohio, New York, New Jersey, Georgia, Texas, Pennsylvania, Connecticut, Rhode Island, Illinois, Michigan, California, Nevada, Montana, Wyoming, Maine, Massachusetts, and Maryland. We integrate our federal and state regulatory practices to provide comprehensive regulatory advice and diligence.

Regional Transmission Organizations & Independent System Operators:  We assist clients in dealing with RTOs and ISOs on market structure, organization, operation, market monitoring, congestion pricing, capacity market developments, and seams. We regularly advise clients on:

  • Energy, capacity and ancillary service market developments
  • Demand response and load management
  • The relationship of physical and financial transactions and trading
  • Virtual and convergence bidding
  • Scheduling practices, compliance, and enforcement
  • Generation interconnection and transmission rights
  • Transmission expansion and access
  • Financial assurance and credit policies
  • Regulatory implications of market changes on existing transactions (e.g., move from zonal to LMP and nodal pricing)
  • Netting of RTO transactions in event of default

Compliance Policies & Procedures:  The Energy & Commodities group has developed a broad range of compliance policies and procedures for energy marketers, generators, and other entities across various commodity sectors. We have designed policies for more than a dozen companies with physical and/or financial trading operations in electricity, natural gas, oil, coal, and emissions addressing compliance standards under FERC, CFTC, federal banking, and federal and state antitrust law. Several of the members of the group previously practiced with federal or state agencies, including the CFTC. The team also includes an experienced energy and commodities market analyst.

In addition, we provide energy and commodity clients with compliance and training as well as analysis of the risk of antitrust litigation surrounding commodity trading positions and assets. Our Antitrust group, led by a former Assistant Attorney General of the Antitrust Division of the U.S. Department of Justice, regularly assists clients in developing and administering antitrust training and compliance programs, including compliance with existing antitrust judgments and decrees. The Antitrust group also includes former regulatory agency officials (FTC and DOJ) highly familiar with the compliance requirements of the federal antitrust laws, including Hart-Scott-Rodino filings and international filings under similar regulations. Our attorneys focus on formulating practical and creative solutions that are designed to assist our clients in achieving their business objectives, while at the same time minimizing litigation risk.

Highlights of our compliance practice include the following capabilities:

  • We understand regulatory risk in both developed and developing markets, and address all relevant issues, including various trading practices, price reporting, information-sharing, commodity price manipulation, prohibited transactions, and recordkeeping.
  • Our lawyers have been actively involved in all major proceedings related to market rules and have advised clients on a large number of regulatory reviews and investigations in the last decade.
  • We maintain current knowledge of all FERC and NERC rules as well as U.S. market rules at the ISO/RTO and control-area level, and routinely monitor regulatory developments with compliance implications.
  • Our policies offer practical guidance on the full range of compliance issues facing energy and commodity trading companies today and can be tailored to the level of detail desired by each client.
  • We also advise on anti-money laundering, import-export requirements, Foreign Corrupt Practices Act, Patriot Act and antitrust requirements.

Compliance Training: We conduct compliance training for energy and commodities clients, including front-office traders and schedulers, and mid-office and back-office personnel. Our in-depth knowledge of market operations enhances the effectiveness of training sessions, which can be broken down into modules or presented in a single session. Our attorneys utilize a highly interactive and practical training approach that encourages dialogue on important questions regarding existing and emerging rules, as well as franchise risk. We offer refresher programs as well as annual updates and routinely address new developments as requested.

CFTC

  • Trade practices in OTC markets, electronic trading facilities, and designated contract markets
  • Implementation of trading strategies to comply with CEA and CFTC regulations
  • Legislative and regulatory advocacy
  • CFTC enforcement of anti-manipulation and fraud
  • Financial reform initiatives
  • Submission of comments to proposed agency regulations
  • CFTC Form 40 filings
  • Hedge exemptions from CFTC and designated contract markets
  • Guidance on registration processes
  • Application of CFTC regulations to agricultural options and swaptions
  • Forward contracting programs
  • Performance of compliance audits
  • Appellate litigation and challenges to agency rules, orders, and proceedings

FERC

  • Enforcement investigations and litigations
  • Market-based rate authorizations
  • Administrative litigation concerning market design, tariff filings and complaint proceedings
  • Transfers of jurisdictional assets and changes in status
  • Management of public utility securities
  • Electronic quarterly report matters
  • Capacity market proceedings and resource adequacy obligations
  • Alternative energy market structure and regulatory requirements
  • Market power analyses and mitigation
  • Rulemakings and policy statements
  • Natural gas pipeline and storage certificate proceedings
  • Oil pipeline access and rate setting
  • Order No. 741 credit reform and compliance proceedings
  • Compliance programs and requirements
  • Electricity regulatory analyses and approvals for transactions
  • Generation interconnection, scheduling and transmission services
  • Mergers and reorganizations
  • Interlocking directorate issues
  • Wholesale market design and structure issues
  • Demand response and load management
  • Transmission, interconnection, siting and permitting issues
  • Tariff modifications and rate setting
  • Electricity and natural gas rate and tariff proceedings
  • Hydropower compliance and enforcement issues
  • Tolls, energy management, scheduling and other energy agreements
  • Appellate litigation and challenges to agency rules, orders, and proceedings

FERC Electricity Proceedings

  • TPW Petersburg, LLC, Docket No. EC11-122
  •  The AES Corporation, DPL Inc., The Dayton Power and Light Company and DPL Energy, LLC, EC11-81
  • Montgomery L'Energia Power Partners, L.P., EC11-84
  • Entegra Power Group LLC, EC11-68
  • Morgan Stanley & Company, EC11-5
  • Various Order 741 credit reform filings
  • California Independent System Operator Corp., ER12-205
  • Dynegy Roseton, L.L.C. and Dynegy Danskammer, EC12-27
  • J.P. Morgan Ventures Energy Corporation and Morgan Stanley, EC11-97
  • Morgan Stanley Capital Group Inc. and Mitsubishi UFJ Financial Group, Inc., EC11-57
  • TAQA Gen X LLC, EC11-17
  • La Paloma Generating Co., EC10-28; MACH Gen LLC, et al., EC09-72; Granite Ridge Energy LLC, EC09-73
  • California Independent System Operator Corp., ER11-4580

FERC Natural Gas Proceedings

  • Southern Natural Gas Company, RP09-427-000
  • Kern River Gas Transmission Company, RP04-274-023
  • Arizona Public Service Company and Sequent Energy Management, L.P., RP10-45-000
  • Stingray Pipeline Company, L.L.C., RP11-2531-000
  • Trailblazer Pipeline Company LLC, RP11-2168-000
  • High Island Offshore System LLC, RP09-487-000; High Island Offshore System LLC, CP10-43-000
  • Columbia Gulf Transmission Company, RP11-1435-000
  • Stingray Pipeline Company, L.L.C., RP11-1957-000
  • Trailblazer Pipeline Company LLC, RP11-1939-000
  • Columbia Gulf Transmission Company and Energy Interchange, LLC, CP11-509 and CP11-510-000

State PUCs and Retail Energy Markets

  • Market monitoring and compliance issues
  • Commission rules and orders implementing federal qualifying facility requirements
  • Commission regulatory authority and policy regarding utility mergers, divestitures and restructurings
  • Retail natural gas and electricity power marketer licensing, on-going compliance and contracting requirements
  • Standard offer and basic generation wholesale power solicitationsRenewable portfolio standards, REC trading and solicitations
  • Utility retail rate and service setting proceedings in various states, including Kansas, Missouri, Illinois and Massachusetts
  • Siting, regulatory compliance and development of generation projects in Massachusetts and New York, among other states

NEWS

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8 Attorneys

Baldwin, Jana V.T. Special Counsel Washington
T. +1 202 862 2266
Billinson, George D. Counsel Washington
T. +1 202 862 2411
Haskell, Mark R. Partner Washington
T. +1 202 862 2407
Perez, Tania S. Partner New York
T. +1 212 504 6060
Schonback Garbien, Danielle Special Counsel New York
T. +1 212 504 6440
Shipp, Bryan Associate New York
T. +1 212 504 5615
Snyder, Brett Special Counsel Washington
T. +1 202 862 2252
Zwirb, Robert S. Consulting Attorney Washington
T. +1 202 862 2291

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