Law360 Publishes Akin Article on FERC Order re: Investor Control over Utilities
Contact:
“FERC Order Affirms Increased Scrutiny Of Investor-Utility Ties,” an article by Akin energy & infrastructure partner Stephen Hug, senior counsel Scott Johnson and counsel Ben Reiter, has been published by Law360.
The article explores a July 3 order from the Federal Energy Regulatory Commission (FERC), which concerned a request for rehearing of an October 22 order regarding “more aggressive scrutiny of investors' exercise of control over public utilities through representation on their boards or the boards of companies holding interests in them.”
The authors describe the order and note how its determination marked a departure from the Commission’s historical approach on affiliation with regard to public utilities. They note the results of the rehearing, including FERC’s determination, then dive into the background of the October 22 order and the decision to rehear the matter.
The authors offer among their takeaways: “As a result of the October 2022 order and the rehearing order, if an investor holds a direct or indirect ownership interest of less than 10% in a FERC-jurisdictional public utility, but has board representation, or the ability to appoint a board member, at the public utility or holding company level, then the investor will be considered to be an affiliate of the public utility.”
To read the full article, click here.
People Mentioned in This News
