Monday, June 24, 2013

John "Jack" G. Sestak, Jr. appointed to Phoenix Sister Cities Board of Directors




Phoenix (June 24, 2013) – Jennings, Strouss & Salmon, a leading Phoenix-based law firm, is pleased to announce that attorney John "Jack" G. Sestak, Jr. has been appointed to the Phoenix Sister Cities Board of Directors.

Phoenix Sister Cities focuses on developing and sustaining lasting, impactful relationships with cities around the globe. The program offers invaluable partnerships and outreach opportunities for the residents of Phoenix and individuals in cities throughout the world. The proactive approach taken to develop projects, exchange programs and create business opportunities has developed a cross-cultural understanding laced with goodwill and commitment to excellence.

“It is an honor to be selected as a Commission Member,” stated Sestak. “I look forward to contributing to the Phoenix Sister Cities mission, which is geared toward creating and sustaining long-term, international partnerships and business opportunities for the citizens of Phoenix.”

Sestak is a transactional and litigation attorney with more than 35 years of experience. In addition to his involvement with Phoenix Sister Cities, he serves on the Board of Directors of Silent Witness and has been a long time member of the Executives Association of Greater Phoenix.

Sestak has received numerous honors and awards, including being recognized by Best Lawyers in America as “Lawyer of the Year 2013” for Administrative/Regulatory Law, Phoenix. He earned a J.D. and a B.A. in Economics, History and Political Science from Vanderbilt University. Sestak also served as an Associate Editor of Vanderbilt Law Review.

About Jennings, Strouss & Salmon                                 
Jennings Strouss & Salmon is one of the Southwest's leading law firms, providing legal counsel for over 70 years through its offices in Phoenix and Peoria, and Yuma, Arizona; and Washington, D.C. The firm's primary areas of practice include agribusiness; bankruptcy, reorganization and creditors’ rights; construction; corporate and securities; employee benefits and pensions; energy; family law and domestic relations; health care; intellectual property; labor and employment; litigation; real estate, land use and zoning; surety and fidelity; tax; and trust and estates. For additional information please visit www.jsslaw.com and follow us on LinkedIn, Facebook and Twitter.
~JSS~
Contact:  Dawn O. Anderson  |  danderson@jsslaw.com |  602.495.2806

Wednesday, June 19, 2013

Marrying Apples and Oranges: A High-level Look at the Evolving Natural Gas Industry and Electric Industry Coordination


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By Daniel E. Cooper, P.E.

A Change in the Electric Industry Affects the Natural Gas industry

A combination of changes in environmental regulations and economic factors is driving a change in the electric utility industry. While coal has historically been the predominant fuel for electric generation in most parts of the United States, natural gas has now generally become the fuel of choice for new fossil-fired electric generating units. The resulting dependence on the natural gas industry as a fuel supply medium for electric generation is causing a reevaluation of the relationship, business practices, and regulatory requirements between the two industries. This article will present a simple, high level look at the practices of the two industries and the challenges that are appearing in developing a closer, more interdependent arrangement between them.

Challenges to Coordination

The physical, technical and business practice challenges affecting coordination between the electric and natural gas industries largely flow from a fundamental difference between their products – natural gas and electric energy. Natural gas can be stored at utility scales, while electricity can’t[1]. Since the structures and business arrangements for the natural gas industry and for the electric industry were each built around this basic fact – one assuming use of storage and firm transmission as a backbone, compared to one where storage isn’t available and fuel usage and transmission flows vary on a minute-by-minute basis as needed to meet demand – those structures and business arrangements are significantly different:
  • Natural gas supply and transportation arrangements are based on nominated (prescheduled) supply and transportation arrangements. The end user, either directly or through supplier charges, pays for any storage used to buffer variations in need and to take advantage of seasonal diversity in demand. Balancing arrangements and financial penalties for differences between scheduled and actual deliveries are an inherent part of the process. A “gas trading day” is defined nationally as 9:00 a.m. to 9:00 a.m. central time, (8:00 a.m. Mountain time and 7:00 a.m. Pacific time). Natural gas deliveries and transportation can typically be scheduled twice before each gas day and modified or updated twice during each gas day at industry standard intervals.
There is a variety of natural gas transportation products available that allow for flexibility in delivery or hedging of variances. Products ranging from “No-notice” service (delivery as needed to a citygate or burnertip point), and “Parking” and “Loan” interruptible services that allow a user to deliver or receive to the pipeline different amounts than nominated are available. Operational Balancing Agreements and Imbalance Resolution mechanisms serve to determine procedures and charges to address how differences between nominated and actual deliveries are balanced financially and through compensating exchanges. However, both economics and reliability concerns weigh against these types of product being used to supply fuel on a variable or unscheduled basis to a large volume electric generator required to support the electric system.
  • Electric utilities have historically designed their generation and transmission systems to supply a forecasted peak load, plus a cushion. The utility then operates its resources to maximize economics (minimize overall longer-term production costs) using the available resources. Electric utilities use a combination of on-site fuel storage and just-in-time fuel delivery arrangements for coal and fuel oil to meet moment-by-moment variations in electric demands. Since the electric demand varies substantially even on an intra-hour basis, a significant degree of flexibility in fuel supply is required. This is reflected in the typical scheduling arrangements for electricity. An “electric trading day” runs from midnight to midnight, generally based on local prevailing time. While schedules are typically for a full day (24 hours), that schedule will include a separate scheduled amount for each hour in the electric trading day. Further, changes and additions to electric schedules can be made hourly, as little as 30 minutes before the start of the hour in some cases.
There are some factors that are changing that affect the ability of the electric industry to forecast fuel needs. The increasing amount of variable wind and solar generation included in the generation mix tends to increase the variability of fuel needs, as fossil-fueled generators (typically natural gas-fueled) must stand ready to offset the swings in supply when weather changes cause fluctuations in the output of variable resources. There are also efforts being made to reduce the variability in electric demand and supply, or at least increase the accuracy with which electric demands (and resulting fuel requirements) can be forecast. Especially in Regional Transmission Organizations (RTOs) with organized central markets, pre-scheduling requirements provide an incentive for end users to accurately forecast their load to gain more control and certainty of pre-scheduled (“Day Ahead”) prices, limiting exposure to “Real Time” electric prices. RTOs are also working with wind generation developers to encourage installation of equipment to provide more ability to control the output of wind farms. Finally, RTOs and electric utilities, at the direction and urging of the Federal Energy Regulatory Commission (FERC) are putting tariff provisions in place to encourage and compensate entities that can control their level of demand (Demand Side Resources) to allow a limited ability to reduce electric demand in peak load and emergency situations.

FERC Initiatives and Areas of Concern

FERC recognized the shift to natural gas-fueled electric generation holds the potential to impact the reliability of the electric supply system. FERC initiated an on-going proceeding under AD12-12 to investigate natural gas and electric coordination. The goal of the proceeding is to determine potential or existing coordination issues, encourage an inter-industry dialog on the issues, and identify areas where FERC actions can facilitate coordination or remove impediments to coordination. Activities to date under AD12-12 have included two technical conferences, as well as requests for comments and input from the natural gas and electric industries on the matter. Industry initiatives are also occurring, such as the EIPC Study of the Natural Gas Electric System Interface that included participation by the ISO New England, New York ISO, PJM, MISO, TVA and Ontario’s Independent Electricity System Operator.

Several areas of concern have been identified so far in the process:
  • Delivery and generation scheduling
As noted above, the delivery days for natural gas and electric delivery schedules do not line up. That, coupled with the twice a day schedules for natural gas when the electric industry uses hourly scheduling results in both commercial and institutional hurdles for coordination of natural gas deliveries with electric generator fuel supply needs. Since the scheduling days and requirements each individual industry uses work well for them, and since those arrangements are incorporated in existing contracts and agreements in each industry, neither industry is rushing to change its basic practices.
  • Coordination of maintenance schedules for natural gas transportation, electric transmission and electric generation facilities
Both the natural gas and the electric industries are used to scheduling resources to meet needs. The addition of consideration of the maintenance requirements of the other industry represents a change in the number of variables to balance, not a new concept. Still, the FERC proceedings under AD12-12 have shown that work is required in at least two areas. First, standard usage terminology differs between the natural gas industry and the electric industry. In some cases, the same words are used differently or have different meanings in the two industries. A “common language” must be assured to allow the two industries to communicate effectively in this area. Further, the FERC Standards of Conduct limit the distribution of critical infrastructure and commercially sensitive information. An effort is underway to make certain these limits don’t hinder effective communications between the industries.
  • Emergency communications
The same issues exist between the industries concerning inter-industry communication during emergencies that hold for maintenance coordination. The communications during emergency are much more critical and time sensitive, however. Gas well freeze-ups and pipeline interruptions may affect fuel supplies for electric generation, requiring utilities or RTOs to be notified so corrective measures can be taken. Emergencies on the electric system may raise the operation of some electric generators to a critical “must operate” status regardless of nominations. This type of information needs to be relayed to affected natural gas suppliers, storage operators, and pipelines in emergency situations. This will require the “common language” discussed under coordination. Beyond that, standing processes need to be developed, maintained, and regularly tested to provide assurance that effective natural gas/electric industry communications can and do occur during emergency situations, with that the communication occurring is a timely and expeditious manner.
  • Limits on transportation and transmission capacity
The present electric transmission system was designed mainly for delivery of electricity from generators to local loads. While the regional planning requirements under Order 1000 will help mitigate the limitations, the electric transmission system generally can’t reliably move massive amounts of electricity from gas producing regions to electric users across the country. Similarly, the natural gas transportation system wasn’t built with consideration of supplying large amounts of natural gas to electric generators (at least in most areas). The addition of large scale natural gas-fired electric generation could result in regional and local pipeline capacity constraints with the use of pipeline capacity for electric generation fuel supply competing with pipeline usage for industrial/commercial and home heating needs. While more transmission and transportation capacity is an obvious answer, the reality of the time and expense incurred in obtaining permits, rights of way, and constructing new natural gas pipelines and electric transmission lines means that this is an area where both constraints and solutions are likely to be long-term matters.

Looking Ahead

The experiences with FERC’s AD12-12 proceeding show expanding gas/electric coordination will not be a quick and easy process. While both industries have strong reasons to coordinate, there are significant institutional and business model differences to address. FERC has targeted areas where it can readily take action, such as facilitating information exchange and addressing potential barriers to coordination from the Standards of Conduct restrictions. Organizations such as the North American Energy Standards Board (“NAESB”) have and continue to work on harmonizing business practices and arrangements. As more electric generation is fueled by natural gas, utilities, independent developers, regional electric supplier groups, and natural gas suppliers and pipelines may evolve agreements to use pooling or redirection arrangements to reduce nomination and actual delivery differences. New gas pipelines and electric transmission can and will be built. But all of these activities will take time – and in some cases a lot of time. During that time, business, technical and operational experiments, fixes and workarounds are likely to be needed as part of a continuing and challenging process.


[1] While utility scale storage options continue to be actively pursued in areas such as utility-scale battery storage, flywheel storage, and compressed air storage, none of these technologies have reached a level of commercial proof and economics that has resulted in large scale electric utility use.

Tuesday, June 18, 2013

JSS Attorney Patrick F. Welch Attends 2013 Arizona-Mexico Commission Plenary Session




JSS attorney Patrick F. Welch, attended the 2013 Arizona-Mexico Commission Plenary Session, which was hosted by Arizona Governor Jan Brewer and Sonora Governor Guillermo Padres. This year's theme was "Arizona & Sonora: Advancing Regional Competitiveness." Mr. Welch participated in the Financial, Business & Legal Services Committee program, which included presentations about investment opportunities in the States of Arizona and Sonora, Cross-Border Currency and Deposit Regulations, U.S. Foreign Accounts Tax Compliance Act, 2013 Mexican Tax Reform Act, and Central Banks, Monetary Policy and Currency Exchange Rates - Implications for Mexico, U.S. and China.

Following adjournment of the Plenary Session, the attendees joined Arizona Governor Jan Brewer and Sonora Governor Guillermo Padres for a Gala Dinner. Mr. Welch, accompanied by his wife, Maribel Balderrama, attended the Gala Dinner joined by Financial, Business & Legal Services Committee co-chairs, Benjamin Aguilera, Aguilera International Counsel LLP, Carlos Emmermann, Emmermann & Associates LLC, Duane Froeschle, Western Alliance Bank Corporation, and Mr. Froeschle's wife, Dianira Froeschle.


Patrick Welch is a licensed attorney in both Arizona and Massachusetts, offering legal services to U.S. and Mexican based individuals and businesses. Patrick is fluent in English and Spanish, and advises his clients with respect to business formation, business transactions and litigation issues arising in the U.S. He is also a member of the Arizona-Mexico Commission.

Mr. Welch has been featured recently in the media commenting on U.S.-Mexico cross-border travel and commerce. View these stories here:

http://www.jsslaw.com/news_detail.aspx?id=245#
 
http://www.bizjournals.com/phoenix/news/2013/06/05/business-travelers-need-to-be-more.html

Monday, June 17, 2013

Supreme Court Strikes Down Arizona Law Requiring Documented Proof of Citizenship Before Registering to Vote


The Supreme Court ruled Monday that an Arizona law requiring documented evidence of citizenship before registering to vote is preempted by federal law. The Justices held that Arizona cannot add to the federal National Voter Registration Act by demanding documented proof of citizenship. The court’s opinion is here.

The National Voter Registration Act only requires that an individual attest to being a United States citizen on a mail-in post card. The Arizona law went one step beyond that and required actual documented proof of citizenship. The result was significantly lower voter registration. According to USA Today, in the years following the implementation of the Arizona law, voter registration dropped by 44% in Maricopa County.

Writing for the majority, Justice Scalia explained that allowing states to impose their own requirements is inconsistent with the National Voter Registration Act, which requires states to accept and use the federal forms. The Justices felt that the Arizona law went too far beyond the National Voter Registration Act, which was implemented in order to simplify voter registration.

This is one of two voting rights cases before the Supreme Court this term. The other case, Shelby County v. Holder, challenges the Voting Rights Act of 1965.  The Voting Rights Act requires 15 states, including Arizona, to get pre-approval from the federal government before implementing voting changes. The Act was originally passed in order to deter voter discrimination but has recently been challenged as prejudicial and no longer necessary.

The Justices are expected to deliver an opinion in that case within the next couple of weeks. Check back to the blog for updates.

Dick Silverman Joins the O’Connor House Board of Directors




Phoenix (June 17, 2013) – Jennings, Strouss & Salmon, a leading Phoenix-based law firm, is pleased to announce that Dick Silverman has joined the O’Connor House Board of Directors.

The O’Connor House’s mission is to continue the enduring legacy of Justice Sandra Day O’Connor, while building partnerships and collaborations within our state and across the nation to solve important social, economic and political issues in the best interest of the state of Arizona. The organization prides itself on non-partisan, objective, and fact-based discussions aimed at developing consensus, stimulating civil discussions and implementing solutions.

“I am very pleased to have the opportunity to serve on the O’Connor House board. The organization’s mission is one that I believe in and support. I look forward to participating in the process of promoting civil discussion and collaborative problem solving,” stated Silverman.

Silverman focuses his practice on energy law. Prior to joining Jennings, Strouss & Salmon, he served as General Manager of the Salt River Project (SRP) from 1994 to 2011. He is a pillar in the community, serving on boards of numerous organizations, including Scottsdale Healthcare, Arizona State Chamber of Commerce, and University of Arizona Foundation. Silverman also served as chair of the Arizona Medical Education Oversight Task Force. He earned a J.D. and a B.A. in Business from the University of Arizona.

About O’Connor House
O’Connor House is an Arizona 501 (c) 3 non-profit organization with a mission to continue the legacy of retired United States Supreme Court Justice Sandra Day O’Connor in solving important social, economic and political problems through civil talk leading to civic action.  For more information please visit www.OConnorHouse.org.

About Jennings, Strouss & Salmon
Jennings Strouss & Salmon is one of the Southwest's leading law firms, providing legal counsel for over 70 years through its offices in Phoenix and Peoria, and Yuma, Arizona; and Washington, D.C. The firm's primary areas of practice include agribusiness; bankruptcy, reorganization and creditors’ rights; construction; corporate and securities; employee benefits and pensions; energy; family law and domestic relations; health care; intellectual property; labor and employment; litigation; real estate, land use and zoning; surety and fidelity; tax; and trust and estates. For additional information please visit www.jsslaw.com and follow us on LinkedIn, Facebook and Twitter.

~JSS~
 
Contact:  Dawn O. Anderson  |  danderson@jsslaw.com|  602.495.2806

Thursday, June 13, 2013

J. Scott Rhodes Appointed Board Chair of the Arizona Town Hall




Phoenix (June 13, 2013) – Jennings, Strouss & Salmon, a leading Phoenix-based law firm, is pleased to announce that Managing Attorney, J. Scott Rhodes, has been appointed Board Chair of the Arizona Town Hall.

“Scott brings a wealth of professional skills, knowledge and leadership to this position,” said Town Hall’s President Tara Jackson. “Most importantly, he brings a love of this state and a passion for making it better. I’ve worked closely with him on many Town Hall projects and am thrilled to work with him as Board Chair,”

The Arizona Town Hall is a nonprofit organization that focuses on fostering an open forum for discussing and exploring some of the state’s most essential topics and issues. From identifying critical issues to implementing changes, members become active participants in cultivating a successful and thriving community. The Town Hall draws on Arizona’s diversity of citizens and promotes public consideration on the many issues. One of the more recent topics was higher education.

“I’m honored to serve as the Board Chair of Arizona Town Hall and look forward to working with the Town Hall staff, participants, and many wonderful volunteers, as we continue to provide opportunities for improving Arizona through informed and civil discourse about our State’s most important and difficult issues,” stated Rhodes.

Rhodes has been associated with the Arizona Town Hall since 1996. He is Managing Attorney of Jennings, Strouss & Salmon and also serves as a member of the firm's three-person Management Committee. Rhodes has an extensive background in legal ethics. He regularly advises attorneys and law firms in matters relating to State Bar complaints, fee disputes, disciplinary matters, bar admission and other licensing, ethics, and professional responsibility issues.

In addition to his involvement with Arizona Town Hall, Rhodes has received numerous accolades, including being named Phoenix Administrative Lawyer of the Year 2011 and Phoenix Ethics and Professional Responsibility Law Lawyer of the Year 2013 by Best Lawyers in America®. Additionally, the State Bar of Arizona selected Rhodes for the 2010 Member of the Year Award.

Rhodes earned a B.A. from Yale University and a J.D. from Arizona State University Sandra Day O’Connor College of Law.


About the Arizona Town Hall
Arizona Town Hall is a private, statewide nonprofit organization that has been a catalyst for civic action and the advancement of issues important to Arizonans for over 50 years.  The organization’s signature events include large, statewide Town Halls held in the spring and fall, while multiple smaller Community Outreach Programs add diverse perspectives to the solutions each Town Hall develops.  The organization also works with government and business entities interested in using the Town Hall system to find common ground and bring solutions to challenges they may be facing.
The Arizona Town Hall is a membership organization with individual, corporate and professional members from all across the state, spanning the five decades of the organization’s existence.  Additional information regarding Arizona Town Hall can be found online at http://www.aztownhall.org.


About Jennings, Strouss & Salmon
Jennings Strouss & Salmon is one of the Southwest's leading law firms, providing legal counsel for over 70 years through its offices in Phoenix and Peoria, and Yuma, Arizona; and Washington, D.C. The firm's primary areas of practice include agribusiness; bankruptcy, reorganization and creditors’ rights; construction; corporate and securities; employee benefits and pensions; energy; family law and domestic relations; health care; intellectual property; labor and employment; litigation; real estate, land use and zoning; surety and fidelity; tax; and trust and estates. For additional information please visit www.jsslaw.com and follow us on LinkedIn, Facebook and Twitter.

~JSS~
 
Contact:  Dawn O. Anderson  |  danderson@jsslaw.com  |  602.495.2806

John J. Egbert Discusses Impact of Immigration Reform Bill on Valley Businesses





Jennings, Strouss & Salmon attorney John J. Egbert speaks with Elizabeth Erwin of KPHO CBS 5 News about the immigration reform bill and how it would impact Valley businesses and the economy if it passes. John J. Egbert is a Labor & Employment attorney at the firm's Phoenix office.


Monday, June 10, 2013

Jennings Strouss Hosts 5th Annual Dinner Honoring Editorial Advisory Committee of the International District Energy Association


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On June 3, 2013 Jennings Strouss was proud to sponsor its 5th annual dinner honoring the Editorial Advisory Committee of the International District Energy Association (IDEA) at its 104th Annual Conference in Miami. The Committee works tirelessly under the leadership of its Chair and Editor, Peter Myers, and its Editorial Staff President and Publisher, Rob Thornton, to publish the internationally acclaimed District Energy magazine. JSS pens a regular column in the quarterly publication providing legal perspectives on issues of interest to IDEA’s 1800 members. JSS attorneys Joel Greene and Alan Rukin, along with Joel’s wife Allie, hosted the dinner at one of downtown Miami’s finest seafood restaurants.

Click here to view photos from this event.

As an added bonus, click here to watch our very own Joel L. Greene sing the IDEA Antitrust Statement at the IDEA Chairman's banquet on June 4th.

Monday, June 3, 2013

Jennings Strouss Attorney Kami M. Hoskins Honored By Black Women Lawyer’s Association of Arizona: Hoskins to receive the Charlotte E. Ray Award of Excellence

 
Kami M. Hoskins

Phoenix (June 3, 2013) – Jennings, Strouss & Salmon is pleased to announce that Kami M. Hoskins, an attorney in the firm’s Phoenix office, will be honored by the Black Women Lawyer’s Association of Arizona (BWLAA) during its annual awards dinner. Hoskins will be receiving the “Charlotte E. Ray Award of Excellence.”

The BWLAA’s mission is to recognize and celebrate the accomplishments of African American female attorneys in Arizona, as well as to promote a “Legacy of Excellence” among this segment of the legal community. The “Charlotte E. Ray Award of Excellence” is presented annually to an outstanding attorney who practices in the state of Arizona.

“Ms. Hoskins is an excellent example of how one can combine the desire to promote the practice of law, while also honoring the development and support of diversity in the profession,” stated Le Bertha Umbreit, Founder and President of BWLAA. “She truly exemplifies the organization’s mission of appreciating and celebrating a Legacy of Excellence. In presenting this award to Ms. Hoskins, BWLAA is proud to honor the memory, spirit and dedication of attorney Charlotte E. Ray.”

Charlotte E. Ray was the first African American woman and the third woman to earn a U.S. law degree when she graduated from Howard Law School in 1872. Ray became the first African American woman lawyer in the U.S. when she was admitted to the District of Columbia Bar.

 “I am honored to be recognized by the Black Women Lawyer’s Association of Arizona for my work in Arizona’s legal community,” stated Hoskins. “Diversity and inclusion are enduring ideals that strengthen our legal system.  I celebrate BWLAA’s ongoing commitment to empower Arizona attorneys.”

Hoskins was past Chair and is a current member of the State Bar of Arizona’s Mentor Committee.  She is also an active member of both the State Bar of Arizona’s Committee on Minorities and Women in the Law and its Diversity Task Force.

Hoskins is an Arizona native; and she earned a J.D. from the University of Arizona, James E. Rogers College of Law, an M.A. from Arizona State University, and dual B.A. degrees from the University of Arizona.

About Jennings, Strouss & Salmon
Jennings Strouss & Salmon is one of the Southwest's leading law firms, providing legal counsel for over 70 years through its offices in Phoenix and Peoria, and Yuma, Arizona; and Washington, D.C. The firm's primary areas of practice include agribusiness; bankruptcy, reorganization and creditors’ rights; construction; corporate and securities; employee benefits and pensions; energy; family law and domestic relations; health care; intellectual property; labor and employment; litigation; real estate, land use and zoning; surety and fidelity; tax; and trust and estates. For additional information please visit www.jsslaw.com and follow us on LinkedIn, Facebook and Twitter.

~JSS~
 
Contact:  Dawn O. Anderson  |  danderson@jsslaw.com|  602.495.2806