IN THIS ISSUE

California: The Financial Effects of the Crisis

Californians received an early warning in May of what is expected to be a long summer of blackouts...

New Product for Devaluation Risk

The first project financing to be guaranteed against devaluation risk closed successfully in mid-May...

Russia Edges Closer to Restructuring UES

The Russian government approved an ambitious plan in late May to restructure the national electric utility, RAO Unified Energy Systems...

Do Turkish Projects Make Sense? | Norton Rose Fulbright

Large additional investments in the Turkish power sector are fairly unlikely in the near future...

IRS Reopens Synfuel Window

The Internal Revenue Service reopened the window in late April for rulings that output from coal agglomeration facilities qualifies as a “synthetic fuel from coal,” but it set a number of conditio...

California Threatens Windfall Profits Tax

California is moving toward imposing a windfall profits tax on electricity generators and power marketers who sell electricity into the state...

“Financial Assistance”: A Fatal Flaw in Cross-Border Acquisition Financings

A challenge in many corporate acquisitions is how to finance the acquisition without violating local company law prohibitions against the target providing “financial assistance” for the purchase o...

Environmental Update

Plans by the US Environmental Protection Agency to regulate mercury and hazardous air pollutants from power plants that burn coal or oil have come under fire...

IN OTHER NEWS

The Bush energy plan faces an uncertain future in Congress after the change in control of the US Senate | Norton Rose Fulbright

THE BUSH ENERGY PLAN faces an uncertain future in Congress after the change in control of the US Senate...

A tax agenda is already taking shape for next year | Norton Rose Fulbright

A TAX AGENDA is already taking shape for next year. Rep. Bill Thomas (R...

Electric interties take front and center | Norton Rose Fulbright

ELECTRIC INTERTIES take front and center...

The IRS Business Plan has several other items on it this year that could affect the project finance community | Norton Rose Fulbright

THE IRS BUSINESS PLAN has several other items on it this year that could affect the project finance community...

New "true lease" guidelines were issued by the IRS | Norton Rose Fulbright

NEW “TRUE LEASE” GUIDELINES were issued by the IRS in May...

The New York gas import tax is un constitutional | Norton Rose Fulbright

THE NEW YORK GAS IMPORT TAX is unconstitutional, a New York appeals court said in May...

Giving an ISO operating control over transmission assets will not jeopardize tax-exempt bonds that a utility used to finance them | Norton Rose Fulbright

GIVING AN ISO OPERATING CONTROL OVER TRANSMISSION ASSETS will not jeopardize tax-exempt bonds that a utility used to finance them, the IRS said...

Louisiana

Louisiana wants new merchant power plants being built in the state to commit to supply at least 25% of their electricity in Louisiana in exchange for property tax breaks

Corporate acquistions will be a little easier to structure as “tax-free reorganizations” | Norton Rose Fulbright

CORPORATE ACQUISITIONS will be a little easier to structure as “tax-free reorganizations...

Carolina Power& Light Company continues to insist that a nuclear power plant was placed in service for tax purposes in 1986 | Norton Rose Fulbright

BRIEFLY NOTED: Carolina Power & Light Company continues to insist that a nuclear power plant was placed in service for tax purposes in 1986 even though the plant was not synchronized with the ...

Argentina said it will tax gain from the sale of shares in Argentine companies | Norton Rose Fulbright

ARGENTINA said it will tax gain from the sale of shares in Argentine companies. Gain from the sale of shares in “public” companies remains exempted from tax...