Project Finance NewsWire

September 2014

IN THIS ISSUE

The Business Model in Transition
David Crane, president and CEO of NRG Energy, said provocatively in the spring that people will soon be buying the equipment they need to generate their own electricity at Home Depot...

Opportunities Abound?
Many people remain bullish about the long-term prospects for renewable energy, but does it feel that way inside the utility-scale renewable energy companies? A group of CEOs talked about the mood ...

Solar Securitizations
What has the market learned from the solar securitizations to date? How much do they reduce the cost of capital? What are their potential uses? The key players in the transactions to date talked a...

New financing trends
A group of veteran bankers have a discussion about new financing trends, including the term loan B market, green bonds, state green banks, yield cos, financing for merchant plants and other topics.

The US Government Moves to Encourage More P3s
President Obama launched a “Build America Investment Initiative” in July that directs federal agencies to encourage broader public and private sector collaboration on infrastructure projects and to expand op...

Environmental update
New proposed rules that the US Environmental Protection Agency issued in early June to limit greenhouse gas emissions from existing power plants have been met with both a chorus of praise and a political and...


IN OTHER NEWS

Additional construction start
Additional construction-start guidance that the Internal Revenue Service issued in early August will allow more wind farms to be financed in the tax equity market.

Corporate Inversions
Corporate inversions are leading to more hand wringing and possible government action in Washington.

REITs
REITs are getting new attention after an IRS ruling to a telecom company.

Master Limited Partnerships
Master limited partnerships received a jolt in early August with news that Kinder Morgan, one of the first adopters, is abandoning the structure and moving ts assets into a corporation.

Minnesota
Minnesota took the first step in early August toward assigning a value to solar electricity.

Colorado
Colorado treats sales of electricity as a “service” rather than a sale of “property,” the state Supreme Court ruled.

California
California extended a property tax exemption for active solar systems through 2024.

CFIUS
CFIUS lost a round in court.

Foreign Ship Owners
Foreign ship owners who hold permits to operate on the US outer continental shelf and have not filed US tax returns are being contacted by the IRS.

China
China is requiring that capital gains taxes be paid on some indirect sales of shares in Chinese companies.

Arizona
Arizona remains a battleground for solar rooftop companies.

A Solar Rooftop Company
A solar rooftop company that entered into a long-term power contract to supply electricity to a city building in Dubuque, Iowa is not violating the monopoly the local utility holds to make retail electricity...

Solar Rooftop Systems
Solar rooftop systems in Puerto Rico qualify for investment tax credits and accelerated 5-year depreciation if owned by a US partnership with all US corporations or citizens as partners, the IRS ruled.

A Depreciation Bonus
Companies putting new equipment in service in the United States have been allowed off and on since 2001 to deduct a fraction of the cost or “basis” immediately.

Australia
Australia rescinded a carbon tax in July that had been in effect for the past two years.

Minor Memos
Bernstein Research reports that almost all US regions are expected to need additional capacity over the next 10 years to maintain reserve margins ...