On March 17, 2023, the Texas Court of Appeals for the Third District issued an opinion reversing two winter storm Uri orders by the Public Utility Commission of Texas (PUCT) that had raised power prices in ERCOT to $9,000/MWh. ERCOT, the Electric Reliability Council of Texas, manages the electric grid for most, but not all, of Texas and serves approximately 26 million customers.

The decision by the Court of Appeals in Luminant Energy Company LLC v. Public Utility Commission of Texas, No. 03-21-00098-CV, has the potential to affect certain transactions made under the PUCT’s orders. The Court of Appeals not only reversed the PUCT’s orders but remanded them for further proceedings. Should the Court of Appeals’ opinion be upheld, it is unclear how the PUCT will resolve the pricing issues, but it would likely need to hold proceedings to address them. The opinion also raised questions about the authority of the PUCT to issue price caps for Texas’ energy market. …

With bank stability and the related stock market rout now dominating the headlines for the first time since the 2008 financial crisis, are financial institutions’ D&O and bankers’ professional liability / E&O (“BPL”) liability policies ready to help backstop coverage, or potentially full of holes?  Coming out of a hard market where insurers carefully and quietly pulled back some policy enhancements over the course of several years, now is the time for financial institutions to review their insurance policies to identify and fill any significant gaps and holes in their executive risk coverages.  The last two weeks demonstrate that financial institutions, as well as their directors and officers, face the risks of receivership, government investigations, securities lawsuits, and personal liability following a bank failure or stock rout in the face of financial stability concerns. …

Trinity Hunt Partners has announced it has acquired Supreme Optimization.

Supreme, founded in 2015, is a digital marketing agency focused on the life sciences industry. Services include web development and design, digital strategy, paid advertising and social media. 

Trinity Hunt, based in Dallas, is a growth-oriented private equity firm that targets small-cap companies…

Federal Student Aid’s Office of Enforcement announced a “secret shoppers” program to evaluate a college or university’s recruitment, enrollment, financial aid and other practices. The secret shoppers program will focus on student recruitment and enrollment practices, which may include the practices of online program managers.

Read on for details about this initiative, including types of…

In the wake of Silvergate’s collapse, Silicon Valley Bank entering receivership and another bank following in SVB’s footsteps, startups and other companies directly affected by these events are struggling to manage their payroll and other obligations while credit facilities are frozen. Although depositors likely will be fully protected and most businesses can expect to avoid…

Patriot Capital has announced it has made a growth capital investment into Turnwell Mental Health Network.

Turnwell, based in Dallas, is an integrated mental health group that operates freestanding outpatient clinics across Arizona and Montana. Services include mental health counseling, primary care, and patient and family education.

Patriot, based in Baltimore, focuses on…

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This Week in Washington: President releases FY2024 Budget

Congress

House

Prescription Information Modernization Act of 2023 Introduced

On March 9, Reps. Harshbarger (R-TN) and Sherrill (D-NJ) introduced the Prescription Information Modernization Act of 2023. The bipartisan bill would give healthcare professionals the option to choose whether to receive digital or printed versions of prescription information…

Gauge Capital has announced it has invested in Streamline Healthcare Solutions.

Streamline, based in Oak Brook, Ill., is a provider of electronic health record software primarily serving behavioral health providers and state and local departments of health. Founded in 2003, the company is the developer of the SmartCare platform and serves a range of…

Last week, the U.S. Department of Justice (DOJ) announced that Sweden-based multinational telecommunications company Telefonaktiebolaget LM Ericsson (Ericsson) will plead guilty to breaching the Foreign Corrupt Practices Act (FCPA) and has agreed to pay over $206 million in related penalties following its alleged breach of a 2019 Deferred Prosecution Agreement (DPA) with the Department.…