Corporate Renewable Energy Purchases Can Trigger Dodd-Frank Swap Reporting Requirements
24 August 2015
Mayer Brown Legal Update
Corporate purchases of renewable energy are on the rise in the United States. Corporations are often attracted by wind energy’s unique ability to hedge against rising prices for other fuels—just as utilities buy fixed-price wind energy to protect their consumers against volatility in the price of other fuels. The investment in renewable energy is occurring both on- and off-site, and through both direct ownership and long-term purchase or similar agreements. Off-site long-term agreements, however, can raise an unexpected reporting issue under related Dodd-Frank Act requirements. We examine some of the key questions that corporations need to consider when making these purchases.