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Walter J. Dunn
804.775.1486
wdunn@mcguirewoods.com
 

Energy Marketing and Commodities Trading

Our energy markets lawyers bring broad and deep experience in over-the-counter and exchange-traded power and gas markets, as well as complex structured transactions. They have significant experience in wholesale transactions and complex physical deals in various power and gas products and markets (as well as coal, crude oil and refined products) together with a depth of experience in swaps and derivative transactions in over-the-counter agreements, exchange-traded futures and options, and the implications for these transactions in bankruptcy proceedings.

Our lawyers regularly counsel clients in developing appropriate risk management and trading policies, as well as to draft and negotiate the documents supporting various origination transactions, such as full requirements transactions or energy management transactions. These services support commodity producers, end users, traders and marketers, originators, clients engaged in exchange-traded futures and options, as well as hedge trading and market making activities at financial institutions and hedge funds. In addition to helping clients evaluate transactions, we can also assist with regulatory compliance issues before the Commodity Futures Trading Commission (CFTC) and the various exchanges as well as the Federal Energy Regulatory Commission (FERC). Such experience is useful to a wide range of clients, including capital markets functions at financial institutions and growing energy clients encountering unprecedented volatility within the deregulating marketplace.

Our energy marketing and commodities trading experience includes:

• Structured Commodity and Energy Transactions - evaluate transactions and advise clients in structuring suitable terms for implementing complex commercial arrangements, including drafting and negotiating final documentation.
• Swaps and Derivatives Master Agreements - negotiation of the International Swaps and Derivatives Association Master Agreement (ISDA) customized to our clients’ needs.
• Master Agreements for Physical Transactions - negotiation of master agreements to facilitate ongoing trading activity in physical energy transactions, such as the Edison Electric Institute (EEI) Master Power Purchase and Sale Agreement.
• Credit Support Agreements and Related Documents - draft and negotiate credit support documentation consistent with the clients’ credit policies and procedures.
• Risk Management Services - counsel clients in establishing internal controls and developing appropriate risk management and trading policies.
• Regulatory Issues - analyze regulatory issues involved in financial and hedging instruments, including representing clients in proceedings before the CFTC and other regulatory agencies.
• Negotiation of numerous EEI Masters and related credit support instruments, including between utilities, municipalities and power marketing counterparties such as Dominion Virginia Power, Enron, Mirant, Commonwealth Edison, Conectiv, LG&E Energy Marketing, Dynegy, Virginia Electric and Power Company, Williams, Carolina Power & Light, Engage Energy (U.S. and Canada), Allegheny Energy, and the Port of Oakland.
• Preparation of solicitation documents (RFPs) and representation of several bidders in many RFPs for wholesale power supply (including into most RFPs for ICAP into NEPOOL since 2000) ;
• Negotiation for or with many of the largest energy generators and traders in the USA, for long and short term trades for firm sales, system sales and unit contingent sales under power purchase agreements, and tolling contracts including Mirant, Dominion Virginia Power, Allegheny, Exelon, Cogentrix, Ingenco, Newport Generation, Aquila, Tenaska, PG&ET, Dynegy, Tractebel, and TVA, several for participants in NEPOOL (including ICAP sales into NEPOOL) such as New Hampshire Electric Cooperative, Central Maine Power, Western Massachusetts Electric Company, Concord Municipal Light, Boston Edison Company and United Illuminating, Florida Power & Light, Green Mountain Power, and Carolina Power & Light.
• Advised and negotiated physical power exchanges between unit entitlement holders in Seabrook and Vermont Yankee nuclear facilities.

We have represented producer, end-user, trading and mid-stream clients in all varieties of natural gas transactions effecting their businesses. Among the transactions and matters our lawyers have handled in the past two years are the following:

• Provided legal support for clients involving trading contracts (including the GISB contract), long term origination agreements, producer services, structured transactions (such as energy management agreements and fuel supply agreements for power plants and asset management agreements for utilities and end-use customers), requests for proposals, transportation agreements and capacity transportation releases, gas processing agreements, and credit matters (including credit support arrangements and netting agreements).
• Provided back office support including working with contract administration and credit units to establish procedures and processes and also provided internal training seminars.
• Provided counsel in regard to regulatory matters pertaining to or affecting the client's energy businesses and facilities including participating in FERC and state proceedings, intervening in specific proceedings and attending hearings and technical conferences.

For further information contact:

Mark J. La Fratta
Joseph G. Tirone
Robert B. Vernon

Power Purchase and Tolling Agreements

Natural Gas Supply Agreements