On June 9, the Federal Energy Regulatory Commission (“FERC”) issued an order revoking authority to charge negotiated “market-based” rates (“MBR Authority”) previously granted to several subsidiaries of Berkshire Hathaway Energy Company (the “Berkshire MBR Sellers”) for wholesale sales of electricity in four balancing authority areas in the western U.S. This order serves as a reminder of the possibility that FERC may revoke MBR Authority and the need to address this when structuring financing for entities relying on MBR Authority.View full memo, Accounting for FERC’s Ability to Revoke MBR Authority in Project Financing Agreements
