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Competitive Energy Solutions for North Carolina

House Bill 589 passed the House and Senate, despite lengthy battles between Duke Energy and renewable energy developers. Rather than a fight for or against alternative energy, the difficult decisions centered around Duke’s control over how much power it would be required to purchase from developers and at what price.  While Duke embraced the growing demand for alternative energy, it also made clear that it strongly disfavors the economics under the current regulatory structure.  While it remains to be seen how ... Read more

WHY NORTH CAROLINA LAGS BEHIND IN 2017 RENEWABLE ENERGY PROJECTS!

WHY NORTH CAROLINA LAGS BEHIND IN 2017 RENEWABLE ENERGY PROJECTS! As 2017 kicks off, Duke Energy appears to be exerting its market power in confrontation with the renewable industry by implementing new standards that have sent independent renewable energy developers for a whirl. This past July, Duke Energy put forth new policies redefining safe grid connections for independent renewable energy producers. The new grid connection requirements, also known as the stiffness test, hinder third party renewable energy companies from moving forward and ... Read more

SEASONS GREETINGS FROM WF

Renewable energy activity continued to flourish in North Carolina in 2015, and while the state tax credit sunsets and safe-harbored projects work their way through the pipeline, all expectations are that renewable energy transactions will continue at a robust pace in 2016. In 2015, the attorneys at WF represented senior secured lenders providing construction, construction-to-permanent, and back leverage financing to renewable energy sponsors in 16 different transactions, that collectively total 47 solar farms, over 230 MW of renewable energy capacity and over ... Read more

NEW MARKETS TAX CREDIT INVESTMENTS CAN BE PLAUSIBLE ALTERNATIVES TO TRADITIONAL SUBORDINATED DEBT

Many companies face challenges arising from balancing the right amount of leverage with access to capital markets and the cost of debt service.  Many senior lenders will cap out their senior debt investments at or around three times leverage.  For companies that require additional debt to finance major corporate transactions, finding the right subordinated lender at the right price can be a challenge.  In some deals we’ve seen recently, middle market sub debt pricing ranges from 10-12% per year with another ... Read more

The Role of Local Counsel In a Multi-Jurisdictional Transaction

Many transactions, especially those involving real estate, qualify as a “multi-jurisdictional transaction.”  Imagine the real estate investor, a California LLC headquartered in Los Angeles, that forms a wholly-owned Delaware LLC subsidiary to purchase an investment property located in Hilton Head Island, South Carolina.  In order to finance the purchase, the subsidiary/borrower obtains a loan from a lender headquartered in Charlotte, North Carolina.  The lender will opt for North Carolina law to govern the loan documents, except that the laws of the ... Read more

2015 Big Year For New Renewable Energy Capacity in North Carolina

2015 promises to be a big year for new renewable energy capacity in North Carolina.   With North Carolina’s state tax incentive sunset at the end of this year, developers will push hard to max out new installations, especially in light of the still uncertain position of North Carolina’s state legislature on solar power incentives and Renewable Energy Portfolio Standards. There remains plenty of ideal farmland, especially in Eastern North Carolina, to provide a long-term home for new installations at an attractive rental rate. The ... Read more