Jason Lewis Speaks at 2025 IECA Education Conference

New York partner Jason Lewis spoke at the 2025 International Energy Credit Association’s U.S. Regional Conference on “Changes in Law Provisions and Other ‘Reg Outs’ in Energy Contracts.”

The presentation focused on how negotiators of long-term energy contracts can address the possibility of future changes and noted the following key takeaways:

• Negotiators should carefully review these clauses, as they may have significant effects or result in the loss of a material contract.
• In the absence of contractual language, common law doctrines may be sufficient in some circumstances to protect parties against changes in law but may not be in others. Parties negotiating contracts in this space need to know the limits of those common law doctrines in order to understand the difference.
• Broad “Change in Law” clauses may create unintended effects.
  • • It is difficult to predict changes over the course of a long-term contract, and those clauses may be used against you in the future.
    • Negotiators should consider addressing key risks only and should consider a “Compliance Cap” instead of a traditional “Reg Out.”
• Where a key approval or permit is required for a party’s performance under a contract, it is imperative to understand the regulatory process and ensure that the contractual requirements align with that process.

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The International Energy Credit Association (IECA) is a non-profit association geared towards aiding professionals directly or indirectly related to the credit risk function in their respective companies.