Energy Bankruptcies

Our lawyers have unparalleled experience in energy related bankruptcies and workouts. Our clients range from large utilities and oil and gas suppliers to energy-industry lenders and independent system operators.

Significant current and recent matters in which our lawyers have been involved include the representation of:

• Potomac Electric Power Company (Pepco) in complex, cutting-edge litigation concerning the ability of Mirant Corporation, a debtor power generator, to reject electric power contracts. Our defense of Pepco resulted in new law in the U.S. Court of Appeals for the Fifth Circuit that requires courts to consider the public interest before approving the rejection of a power contract.
• Various parties in the bankruptcy case of Calpine Corporation, including purchasers of certain Calpine assets.
• Koch Industries, Inc., Utah Associated Municipal Power Systems, Old Dominion Electric Cooperative and Jacksonville Electric Authority, among others, in the bankruptcy of Enron Corp., including negotiating, mediating and litigating to satisfactory resolution various competing claims concerning energy forward contracts, as well as claims against Enron for fraud.
• Koch Industries, Inc. and certain of its affiliates as unsecured creditors with complex indemnity claims in the Chapter 11 case of EOTT Energy Partners, L.P.
• New England Power Company as a creditor in the Chapter 11 cases of National Energy and Gas Transmission, Inc.and its affiliates. Orrick lawyers also represented the California Independent System Operator Corporation and PJM Interconnection, LLC as defendants in connection with actions by the debtors to avoid payments made under FERC-approved tariffs, and were successful in getting such actions dismissed.
• Niagara Mohawk Power Corporation, New England Power Company, The Narragansett Electric Company and Massachusetts Electric Company, as creditors/utility providers, and Niagara Mohawk Power Corporation, as a member of the official unsecured creditors' committee, in the Chapter 11 proceeding of NRG Energy, Inc. In connection with the confirmation of the debtors' plans, our lawyers negotiated a pass-through arrangement whereby our clients' contracts were assumed and their claims were unaffected by the bankruptcy.
• Niagara Mohawk Energy Marketing, Inc., as a creditor in the bankruptcy of The Power Company of America L.P., the first involving a power marketer.
• Sacramento Municipal Utility District (SMUD) in the workouts and bankruptcy cases of its various vendors, including matters involving manufacturers of components necessary for the decommissioning of SMUD's nuclear power plant.
• New England Power Company, The Narragansett Electric Company, Massachusetts Electric Company, Nantucket Electric Company, Granite State Electric Company and National Grid USA Service Company, Inc. in litigation relating to USGen New England, Inc.'s asset sales and our clients' $200 million-plus claims, which ultimately were paid in full.