Client Alert

| August 17, 2009

Second Circuit Vacates Issuance of Hydroelectric License Based on FERC's Procedural Missteps

Last week the U.S. Court of Appeals for the Second Circuit offered a stark reminder to hydroelectric licensees that the relicensing process overseen by the Federal Energy Regulatory Commission ("FERC") is fraught with risk. Specifically, on August 10, 2009, in the case of Green Island Power Authority v. Federal Energy Regulatory Commission, the Second Circuit vacated FERC's order issuing a new license to the 38.8 megawatt ("MW") School Street Hydroelectric Project ("the Project") located near Albany, New York, due to FERC's failure to adhere to various procedural requirements associated with soliciting motions to intervene near the conclusion of a more than 15-year relicensing process. The Second Circuit's decision highlights the relicensing process risk to the licensee, which can only be countered through constant vigilance and proactive involvement to ensure that all authorities with jurisdiction over the relicensing adhere to all statutory and regulatory requirements during the long and typically complex relicensing process.

This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent. For further information on Dewey & LeBoeuf, please visit www.dl.com. +1 888 532 6383