In recent years, the combination of increased demand for energy resources together with supply-side shocks from a volatile federal energy and trade policy landscape has resulted in critical equipment price and availability uncertainty, adding value to proprietary supplier relationships and procurement pipelines. In addition, the market has witnessed marked diversification in the type, location and volume of electricity market generation resources, combined with barriers to needed upgrades to energy infrastructure. Against that backdrop of changes and challenges, the market is witnessing a variety of energy-sector participants working together to bring their respective resources and strengths together to try to meet demand. The article examines how those participants can collaborate on large infrastructure projects without running afoul of U.S. antitrust laws. The article also discusses practical safeguards to help energy-sector companies capture the efficiencies of collaboration while minimizing exposure to costly investigations, civil damages, and criminal liability under antitrust laws.
The energy sector in the United States is fundamentally intertwined with the country’s economic wellbeing and national security. It is also a complex, interdependent and capital-intensive industry with a competitive landscape that is simultaneously both global and hyper-local. Ownership and operation of transmission and distribution infrastructure presents a natural monopoly and is regulated accordingly. Electricity generation and ancillary service markets are geographically defined and susceptible to concentration risk.
In recent years, the combination of increased demand for energy resources together with supply-side shocks from a volatile federal energy and trade policy landscape has resulted in critical equipment price and availability uncertainty, adding value to proprietary supplier relationships and procurement pipelines. The last 20 years has seen marked diversification in the type, location and volume of electricity market generation resources, combined with stubborn barriers to badly-needed upgrades to the transmission and distribution infrastructure carrying energy from producers to consumers.
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