Justia Government & Administrative Law Opinion Summaries
Articles Posted in Utilities Law
In re Application of Ohio Power Co.
The Supreme Court affirmed the order of the Public Utilities Commission that approved a charge referred to as the Power Purchase Agreement (PPA) Rider as a component of Ohio Power Company’s third electric-security plan (ESP), holding that the order was not unlawful or unreasonable.Specifically, the Court held (1) the PPA Rider did not recover unlawful transition revenue; (2) the challenges to the Commission’s approval of the PPA Rider under the ESP statute, Ohio Rev. Code 4928.143, were without merit; (3) the challenges to the Commission’s approval of the joint stipulation to resolve the issues in the PPA Rider case failed; and (4) the Commission complied with Ohio Rev. Code 4903.09 when it approved the Ohio Valley Electric Corporation-only PPA Rider. View "In re Application of Ohio Power Co." on Justia Law
In re Application of Ohio Power Co.
The Supreme Court dismissed the appeal brought by the Office of Ohio Consumers’ Counsel (OCC) and the Ohio Manufacturers’ Association Energy Group (OMAEG) challenging the Public Utility Commission’s decision to approve the third electric-security plan (ESP) of Ohio Power Company, holding that OCC and OMAEG failed to demonstrate prejudice or harm caused by the ESP order.On appeal, OCC and OMAEG argued that the Commission’s approval of the Power Purchase Agreement Ride as a component of the ESP was reversible error. The Supreme Court dismissed the appeal, holding (1) OCC failed to demonstrate that ratepayers suffered actual harm or prejudice from the ESP order; and (2) this Court declines to address the claims that ratepayers were at risk of imminent or future harm rising from the ESP order. View "In re Application of Ohio Power Co." on Justia Law
Pool v. Greater Harrison County Public Service District
The Supreme Court affirmed the order of the West Virginia Public Service Commission (PSC) finding that it did not have statutory jurisdiction to consider Petitioner’s complaint challenging the Greater Harrison County Public Service District’s (the District) rate increase, holding that the District was not subject to the PSC’s jurisdiction with regard to ratemaking authority.In 2015, the Legislature adopted deregulation measures to limit the PSC’s jurisdiction and to exempt larger public service districts from the requirement that the district obtain approval from he PSC before changing the rates it charged for water or sewer service. After 2015, larger public service districts, statutory defined as having at least 4,500 customers, were only required to obtain approval of a rate change from a local elected body. After the Harrison County Commission approved a rate increase sought by the District, Petitioner, a District customer, brought suit arguing that the PSC had jurisdiction because the District did not have at least 4,500 customers. The PSC found that the District provided service to at least 4,500 customers, and thus, it did not have jurisdiction to examine the District’s rate increase. The Supreme Court affirmed. View "Pool v. Greater Harrison County Public Service District" on Justia Law
Jefferson County Citizens for Economic Preservation v. Public Service Commission of West Virginia
The Supreme Court affirmed the order of the Public Service Commission finding that the Jefferson County Public Service District may “indefinitely delay” a project to upgrade its sewer service, holding that the Commission did not exceed its authority or make factual findings that were not supported by adequate evidence and that the substantive result of the Commission’s order was not improper.The Supreme Court may reserve an order of the Commission when it exceeded its authority, it made factual findings that were not supported by adequate evidence, and the substantive result of the order was not proper. In affirming the Commission’s order, the Court held that, under the facts of this case, none of these three situations applied. View "Jefferson County Citizens for Economic Preservation v. Public Service Commission of West Virginia" on Justia Law
In re Application of Dayton Power & Light Co.
The Supreme Court dismissed this appeal challenging the Public Utility Commission’s decision to allow Dayton Power and Light Company (DP&L) to withdraw and terminate its second electric-security plan (ESP II), holding that the Commission’s approval of DP&L’s third electric-security plan (ESP III) rendered this case moot.The Commission allowed DP&L to withdraw and terminate its ESP II rate plan and service stability rider (SSR) charge. The ESP II rate plan and its SSR charge were then replaced by ESP III, which the Commission approved. Appellant’s appealed the Commission’s order regarding ESP II. The Supreme Court dismissed the appeal as moot, holding that because there was no remedy that the Court could legally order, the appeal constituted only a request for an advisory ruling, and the controversy was no longer live. View "In re Application of Dayton Power & Light Co." on Justia Law
ANR Storage Co. v. FERC
The DC Circuit granted ANR's petition for review challenging FERC's decision refusing to allow ANR to charge market-based rates, as opposed to cost-based rates, for its natural gas storage services. The court held that FERC acted arbitrarily and capriciously because it did not provide any reasonable justification for allowing DTE affiliates but not ANR to charge market-based rates. Furthermore, FERC's market-power analysis was internally inconsistent. The court also held that ANR's remaining contentions lacked merit. The court remanded for further proceedings. View "ANR Storage Co. v. FERC" on Justia Law
Village of Old Mill Creek v. Star
Regional transmission organizations manage the interstate grid for electricity, conduct auctions through which many large generators of electricity sell most or all of their power, and are regulated by the Federal Energy Regulatory Commission (FERC) Illinois subsidizes nuclear generation facilities by granting “zero emission credits,” which generators that use coal or gas to produce power must purchase from the recipients at a price set by the state. Electricity producers and municipalities sued, contending that the price‐adjustment aspect of the system is preempted by the Federal Power Act because it impinges on the FERC’s regulatory authority. They acknowledge that a state may levy a tax on carbon emissions; tax the assets and incomes of power producers; tax revenues to subsidize generators; or create a cap‐and‐trade system requiring every firm that emits carbon to buy credits from firms that emit less carbon. They argued that the zero‐emission‐credit system indirectly regulates the auction by using average auction prices as a component in a formula that affects the credits' cost. The Seventh Circuit affirmed summary judgment for the defendants. Illinois has not engaged in discrimination beyond that required to regulate within its borders. All Illinois carbon‐emitting plants need to buy credits. The subsidy’s recipients are in Illinois. The price effect of the statute is felt wherever the power is used. All power (from inside and outside Illinois) goes for the same price in an interstate auction. The cross‐subsidy among producers may injure investors in carbon‐ releasing plants, but only plants in Illinois. View "Village of Old Mill Creek v. Star" on Justia Law
In re Petition of Green Mountain Power Corp. for Approval to Invest in Hydroelectric Generation Facilities Located Outside Vermont (Allco Renewable Energy Limited, Appellant)
Allco Renewable Energy Limited (Allco) appealed the Vermont Public Utility Commission’s (PUC) denial of Allco’s motion to intervene as a party in proceedings concerning whether Green Mountain Power Corporation (GMP) could purchase power generation facilities outside of Vermont. Allco argued that it should have been allowed to intervene because it meets the criteria for intervention set out in the PUC’s own rules. In particular, Allco argued it had a substantial interest in the proceedings both as a ratepayer and as a competing supplier of power. Allco also appealed the PUC’s eventual decision to allow the purchases. The Vermont Supreme Court affirmed the PUC’s denial of Allco’s motion to intervene and accordingly dismissed Allco’s second appeal. View "In re Petition of Green Mountain Power Corp. for Approval to Invest in Hydroelectric Generation Facilities Located Outside Vermont (Allco Renewable Energy Limited, Appellant)" on Justia Law
Township of Bordentown v. Federal Energy Regulatory Commission
Petitioners sought to prevent the expansion of Transco’s interstate natural gas pipeline facilities, arguing that the Federal Energy Regulatory Commission (FERC) violated the Natural Gas Act (NGA), 15 U.S.C. 717–717z and environmental protection statutes, by arbitrarily approving Transco’s proposed project. Petitioners also argued that the New Jersey Department of Environmental Protection (NJDEP) violated state law by improperly issuing permits required under federal law before commencement of construction activities and by denying the petitioners’ request for an adjudicatory hearing to challenge the permits, based only on the NJDEP’s allegedly incorrect belief that the New Jersey regulations establishing the availability of such hearings were preempted by federal law. The Third Circuit concluded that the challenges to FERC’s orders lacked merit because no discharge-creating activity can commence without New Jersey independently awarding Transco with a Section 401 permit; no activities that may result in a discharge can follow as a logical result of just FERC’s issuance of the certificate. FERC adequately addressed the need for the project and its cumulative impacts, as required by the National Environmental Policy Act. The court remanded to NJDEP. NJDEP misunderstood the scope of the NGA’s assignment of jurisdiction to the federal Courts of Appeals, rendering unreasonable the sole basis for its denial of the petitioners’ request for a hearing--preemption. View "Township of Bordentown v. Federal Energy Regulatory Commission" on Justia Law
Office of People’s Counsel v. Maryland Public Service Commission
The Court of Appeals held that the Public Service Commission (Commission) acted within its authority when it approved the acquisition of Pepco Holdings, Inc. (PHI) and its utility subsidiaries by Exelon Corporation (Exelon).The General Assembly has provided for judicial review of decisions of the Commission assessing and either approving or rejecting an acquisition of a company that supplies electricity in the State, including a merger with another utility. At issue here was the Commission’s approval of the acquisition of PHI and its utility subsidiaries by Exelon. The circuit court and Court of Special Appeals concluded that the Commission acted within its authority when it approved the transaction. The Court of Appeals affirmed, holding (1) the Commission properly considered the factors listed in Md. Code Pub. Util. Cos. 6-105(g)(2) and exercised its discretion as to what weight to accord factors other than those specifically listed in the statute; and (2) the Commission acted neither arbitrarily nor capriciously in evaluating harm to renewable and distributed generation markets. View "Office of People's Counsel v. Maryland Public Service Commission" on Justia Law