Project Finance NewsWire

October 2019


California moves forward

The amended plan of reorganization that PG&E Corporation and its subsidiary utility, the Pacific Gas and Electric Company, filed with the bankruptcy court in late September...

Scrutiny for inbound US investments

Acquisitions of non-controlling interests in certain power projects by foreign investors are now subject to review by the Committee on Foreign Investment in the United States or CFIUS.

Energy storage in ERCOT

Who ought to own standalone energy storage in ERCOT? The implications for generators, transmission and distribution utilities, developers and ratepayers are big.

ERCOT price spikes

The price to buy wholesale power in ERCOT — the grid that serves Texas — spiked to $9,000 a megawatt hour at certain intervals over the course of a few days in August 2019.

Depreciation bonus questions answered

New depreciation bonus regulations that the IRS issued in September answer a number of questions that have been coming up in M&A and tax equity transactions.

Environmental update

As the November 2020 election nears the start of its one-year countdown, a number of significant environmental regulatory reversals being pushed by the Trump administration look likely to depend on the outcome.


Prepaid power contracts

Prepaid power contracts may have gotten a new lease on life in proposed regulations the IRS issued in September.

Refined coal

A refined coal transaction landed in court. The taxpayers won.

Inherited sales tax liability

Unpaid sales taxes that should have been paid in the past on equipment sales follow the equipment and can become an obligation of a later owner.

Texas franchise taxes

Texas does not let companies providing services — as opposed to selling goods — deduct costs when calculating income subject to state franchise taxes.

Related-party loans

Prepayment options in loans from affiliates could cause tax problems if not exercised once it becomes economically beneficial to do so.

Wind data

The national average price of wind power purchase agreements has dropped below 2¢ a kilowatt hour.

Other data points

A study in September said that 90% of the 68,000 megawatts of new gas-fired power plants currently proposed in the US will be uneconomic compared to new solar and wind projects equipped with storage by 2035.