IN THIS ISSUE

Opportunities and Risks

This has been a year of change for the US power industry. Many companies have put assets up for sale. State regulators are wondering whether to freeze any further deregulation...

Downward Ratings: Where Does It End? | Norton Rose Fulbright

The following are excerpts from a discussion at the Quebec conference about the pressure that US power companies are under from the rating agencies...

Mexican Goulash - independent power projects are not in jeopardy in Mexico

Contrary to published reports, existing independent power projects are not in jeopardy in Mexico. However, future projects are in a constitutional limbo that could last at least a year...

Pakistan Restructures

The Pakistani regulatory authority allowed an unprecedented increase in electricity prices on average from 9% to 21% per kilowatt hour affecting some 10 million consumers across the country, exclu...

The Retreat From Emerging Markets

Global Power Report reported in May, “In recent months, the stream of companies retreating from overseas markets has turned into a stampede...

Lenders: What To Do If You Missed the July Deadline

Project lenders who were not paying attention to their calendars may have less security in a debtor’s assets than they think they do...

Surety Bonds Compared to LCs

Parties to project finance transactions are sometimes asked to accept surety bonds as security in place of letters of credit. There are key differences between the two instruments...

Environmental Update - August 2002

New Source ReviewThe US Environmental Protection Agency released long-awaited plans to reform the new source review, or “NSR,” air permitting program in mid-June...

IN OTHER NEWS

Gas intertie payments may not have to be reported as taxable income | Norton Rose Fulbright

GAS INTERTIE payments may not have to be reported as taxable income...

New depreciation bonus rules will probably be changed this fall through “technical corrections” to the statute | Norton Rose Fulbright

THE NEW DEPRECIATION BONUS rules will probably be changed this fall through “technical corrections” to the statute. Some of the changes under discussion are unfavorable to taxpayers...

Written advice from accounting firms is becoming harder to protect from disclosure to the IRS | Norton Rose Fulbright

WRITTEN ADVICE from accounting firms is becoming harder to protect from disclosure to the IRS...

US subsidiaries of foreign companiesstarting to focus on a potential threat to their interest deductions | Norton Rose Fulbright

US SUBSIDIARIES OF FOREIGN COMPANIES are starting to focus on a potential threat to their interest deductions. A bill introduced by Rep. Bill Thomas (R...

US Appeals Court dealt a blow to FERC | Norton Rose Fulbright

A US APPEALS COURT dealt a blow to the Federal Energy Regulatory Commission...

Power plant repairs get attention from the IRS | Norton Rose Fulbright

POWER PLANT REPAIRS get attention from the IRS...

“WASTE” may be defined more broadly for tax purposes | Norton Rose Fulbright

“WASTE” may be defined more broadly for tax purposes.Power plants that burn waste fuels qualify for more rapid tax depreciation and tax-exempt financing...

Wind credits were 1.8¢ a kilowatt hour last year | Norton Rose Fulbright

WIND CREDITS were 1.8¢ a kilowatt hour last year, the IRS said in late June...

Gas pipeline project to bring gas from Alaska to the lower 48 states is expected to receive special tax subsidies from the US government | Norton Rose Fulbright

A GAS PIPELINE project to bring gas from Alaska to the lower 48 states is expected to receive special tax subsidies from the US government. The project would carry up to 4...

Windfall profit taxes that US utilities paid in the United Kingdom cannot be used as an offset against US taxes | Norton Rose Fulbright

WINDFALL PROFIT TAXES that US utilities paid in the United Kingdom cannot be used as an offset against US taxes, the IRS said in a “coordinated issues paper...

The Delhi High Court quashed a circular that made it easy for corporations that use Mauritius as a staging post for investments into India to qualify for favorable tax treaty | Norton Rose Fulbright

THE DELHI HIGH COURT quashed a circular that had made it easy for corporations that use Mauritius as a staging post for investments into India to qualify for favorable tax treaty benefits...

California will allocate property tax revenues from power plants to the taxing districts where the plants are located under a new law | Norton Rose Fulbright

CALIFORNIA will allocate property tax revenues from power plants to the taxing districts where the plants are located under a new law enacted in July...

Pennsylvania

Pennsylvania moved in June to allow corporations to sell unused tax losses to another company for an amount equal to at least 75% of the transferred tax benefits

Two potentially significant IRS announcements are expected this summer | Norton Rose Fulbright

MINOR MEMOS: Two potentially significant IRS announcements are expected this summer . . . ...