IN THIS ISSUE

Storm Over Argentina - a number of effects from the turmoil in Argentina

Chadbourne lawyers working on projects in Latin America reported a number of effects from the turmoil in Argentina...

Western Merchant Plant Outlook

If the events of the past few years — price spikes in the Midwest, the California electricity crisis and the Enron bankruptcy — demonstrate anything, it is that electricity industry restructuring ...

FERC Considers Tighter Regulation Of Independent Power Companies

The Federal Energy Regulatory Commission proposed changes in late December, in the wake of the Enron bankruptcy, to the “uniform system of accounts” that investor-owned utilities must use to repor...

Utility Mergers Hit A Wall

A US appeals court overruled US Securities and Exchange Commission approval for a consummated merger between two US utility holding companies in mid-January on grounds that the merger would have v...

Mexican Tax Laws Change | Norton Rose Fulbright

Mexican tax reforms that took effect on January 1 will have a direct effect on the overall tax cost of doing business in Mexico...

Power Contract Securitizations

The Enron bankruptcy has made it more difficult — but not impossible — to “monetize” the revenues an electricity generator expects to receive over time from a long-term power sales contract by bor...

Brazil confirmed that mandatory arbitration provisions in business contracts are enforceable | Norton Rose Fulbright

BRAZIL confirmed that mandatory arbitration provisions in business contracts are enforceable. This will please foreign investors who prefer not to have disputes decided in the local courts...

Brazil Overhauls Regulation Of Power Sector

The Brazilian government announced in early January that it plans to modify the regulatory scheme for the power sector in an effort to revitalize the domestic power industry...

Environmental Update - February 2002

With Congress back in session, consideration of multi-pollutant legislation to cap and reduce air emissions from power plants is expected to take center stage in US Congressional committees with j...

IN OTHER NEWS

Enron came under pressure to release tax returns and other details about its tax planning | Norton Rose Fulbright

ENRON came under pressure to release tax returns and other details about its tax planning...

Generators who paid tax grossups in addition to the cost to connect their power plants to the grid are now asking utilities for their money back | Norton Rose Fulbright

GENERATORS who paid tax grossups in addition to the cost to connect their power plants to the grid are now asking utilities for their money back...

Synfuel projects receive attention from the IRS | Norton Rose Fulbright

SYNFUEL PROJECTS receive attention from the IRS. The agency had a backlog of 22 ruling requests when it reopened the rulings window last October after a hiatus of about a year and a half...

US Treasury officials gave a preview in late January of guidelines the government may propose later this year to settle controversies over writeoffs | Norton Rose Fulbright

US TREASURY OFFICIALS gave a preview in late January of guidelines the government may propose later this year to settle controversies over write-offs for costs of intangible assets...

Tax shelters are starting to worry the Bush administration | Norton Rose Fulbright

TAX SHELTERS are starting to worry the Bush administration...

Mauritius overhauled its companies act | Norton Rose Fulbright

MAURITIUS overhauled its companies act, effective on December 1...

Holland Made It Harder to Use Hybrid Debt to Strip Earnings into Holland from Another Country

HOLLAND made it harder to use hybrid debt to strip earnings into Holland from another country...

US multinational lost bid in court to treat its Japanese subsidiary as a CFC for US tax purposes | Norton Rose Fulbright

A US MULTINATIONAL lost its bid in court to treat its Japanese subsidiary as a “controlled foreign corporation,” or CFC, for US tax purposes...

Culm is not “biomass” for tax purposes | Norton Rose Fulbright

CULM is not “biomass” for tax purposes, a federal district court in Pennsylvania said in late January...

Wind developers got more good news from the IRS | Norton Rose Fulbright

WIND DEVELOPERS got more good news from the IRS. Wind projects qualify for section 45 tax credits in the US. This is a tax credit of 1.7¢ a kilowatt hour for electricity generated...

Coal transportation and handling costs of utilities cannot be deducted immediately | Norton Rose Fulbright

COAL transportation and handling costs of utilities cannot be deducted immediately, the IRS said...

Sale-leaseback transaction aimed at enabling a corporation to use expiring foreign tax credits was shot down | Norton Rose Fulbright

A SALE-LEASEBACK transaction aimed at enabling a corporation to use expiring foreign tax credits was shot down by the IRS...

Brazil confirmed that mandatory arbitration provisions in business contracts are enforceable | Norton Rose Fulbright

BRAZIL confirmed that mandatory arbitration provisions in business contracts are enforceable. This will please foreign investors who prefer not to have disputes decided in the local courts...

Brazil will eliminate two transfer taxes on coal and gas used to generate electricity | Norton Rose Fulbright

MINOR MEMOS: Brazil will eliminate two transfer taxes on coal and gas used to generate electricity starting March 1. The taxes are a .65% “PIS” tax and a 3% social security, or COFINS, tax...