In the now obviously challenged Electric Reliability Council of Texas (ERCOT) power market, a strange dance recently occurred. On February 21, 2021, the Public Utility Commission of Texas (PUCT), which oversees ERCOT, issued an order authorizing ERCOT to use its sole discretion in taking actions under the ERCOT Nodal Protocols to resolve financial obligations between

On February 22, 2021, the United States Federal Energy Regulatory Commission (FERC) announced its intention to open a new proceeding to examine the threat that climate change and extreme weather events pose to electric reliability. The proceeding will examine how grid operators prepare for and respond to extreme weather events, including, but not limited to,

On February 23, 2021, the House of Representatives discussed and approved the draft of the Amendment of the Electricity Industry Law proposed by Mexico President López Obrador with a total of 304 votes. One of the most relevant features of the Amendment is the modification of the dispatch order, disregarding economic efficiency mechanics, which will

On January 27, 2021, President Biden signed Executive Order 14008, Tackling the Climate Crisis at Home and Abroad (the “Order”). The Order sets forth the Biden administration’s policies to address climate change through both foreign and domestic policies and demonstrates the administration’s intent to make addressing climate change a top priority for nearly every department

The electricity industry in Mexico is under stress. The President of Mexico has proposed amendments to the Electricity Industry Law that could result in the undoing of the energy reform that permitted private investment in the power market. In parallel, the Mexican Supreme Court issued a decision rejecting a number of provisions of the Ministry

The inauguration of the Biden administration will bring a plethora of policy changes focused on US electric power production, fuel, and climate change mitigation and remediation. The Biden administration’s Climate Executive Order, discussed further in this Legal Update, declares the intention to “reduce greenhouse gas emissions” and “bolster resilience to the impacts of climate change.”

Although the incoming Biden administration has put forth bits and pieces of a variety of potential tax reforms and incentives, two focus areas have clearly emerged—a reduction or rollback of certain provisions of the 2017 Tax Cuts and Jobs Act and a focus on clean energy and reducing carbon emissions (while promoting US-based manufacturing). Policy

On January 18, 2021, the Energy Regulatory Commission (Comisión Reguladora de Energía, “CRE”) published in the Official Gazette of the Federation (Diario Oficial de la Federación, “DOF”) a resolution suspending again all deadlines and terms of actions and procedures before the CRE.

In a manner similar to the last suspension resolution, the

“There are many things from which I might have derived good, by which I have not profited, I dare say,’ returned the nephew. ‘Christmas among the rest. But I am sure I have always thought of Christmas time, when it has come round—apart from the veneration due to its sacred name and origin, if anything belonging to it can be apart from that—as a good time; a kind, forgiving, charitable, pleasant time; the only time I know of, in the long calendar of the year, when men and women seem by one consent to open their shut-up hearts freely, and to think of people below them as if they really were fellow-passengers to the grave, and not another race of creatures bound on other journeys. And therefore, uncle, though it has never put a scrap of gold or silver in my pocket, I believe that it has done me good, and will do me good; and I say, God bless it!”  A Christmas Carol, Charles Dickens

As 2020 ends and the festive season is dampened by a growing number of COVID-19 infections, one might say “Bah Humbug” to an unforgettable year that one might wish to forget. What does 2021 hold for the world beyond COVID-19 and the future of the US-China relationship? Will the Ghost of Christmas Yet to Come be “dark and mysterious”, “faceless” and present “the unknown, and the fear inherent” or can the world come together again for a better Christmas in 2021?


Continue Reading Belt and Road Initiative – The Green and Clean Road Beyond COVID-19

On December 1, 2020, the Ministry of Energy (“SENER”) and the Ministry of Economy presented a draft resolution before the National Commission for Regulatory Improvement (“CONAMER”) the “Resolution that Establishes the Goods Whose Import and Export are Subject to Regulations Issued by the Ministry of Energy” (the “Draft Resolution”), which may be consulted here.

The Draft Resolution, will supersede the current permitting regulation for import and export of hydrocarbons and petroleum products, originally published by SENER in the Federal Official Gazette (“DOF”) on December 29, 2014 (as amended, the “Current Regulations”).  In parallel, the Draft Resolution also regulates other goods (i.e. softwares, nuclear and radioactive material).

The principles behind the Draft Resolution contemplate a regulatory environment that is very different from the 2014 energy reform regulations.  The Draft Resolution constrains the procedure for filing and obtaining import and export permits and establishes additional requirements.  As an example, applicants will have to demonstrate that the export of hydrocarbons will not impact the domestic supply in the mid and long term.  This is an extremely vague requirement that could likely result in disagreements, delaying the issue of such permits and the activities of the relevant parties.  The fact that a permit will be deemed rejected if SENER fails to issue a resolution on its application is another serious difference with the Current Regulations.  Finally, the fact that state-owned companies, such as Pemex, may be consulted to determine the convenience of any such permits may also be problematic and add uncertainty to the process.

It is important that companies that may be affected by this new regulation provide comments within the public consultation timeline so that they can be considered before the Draft Resolution is published and enters into effect.


Continue Reading Mexican Authorities Propose New Rules for Import and Export Permits Granted by SENER: Hydrocarbons and Petroleum Products