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FERC Turf War With Bankruptcy Courts Persists Despite Losses

Aug. 4, 2022, 4:39 PM

Energy industry players in the US have been increasingly assured that their federally regulated contracts can be rejected through bankruptcy without approval from the Federal Energy Regulatory Commission, but the agency may still fight tooth and nail along the way.

The US Court of Appeals for the Fifth Circuit has ruled for the second time in just five months that bankrupt energy companies can decide to terminate regulated contracts without FERC’s permission. The holdings echo a Sixth Circuit decision from just three years ago, together forming the most authoritative precedent on the issue.

Despite FERC’s persistent attempts to have final ...