Justia Government & Administrative Law Opinion Summaries
Articles Posted in Utilities Law
Arkansas Public Service Comm. v. FERC
The DC Circuit denied the Arkansas Commission's petition for review of a final FERC order. The FERC order held that an operating company withdrawing from a multi-state energy system must continue to share the proceeds of a pre-departure settlement with the other member companies. The court held that FERC had a lawful basis to order the sharing of the benefits of the settlement and was reasoned in its allocation methodology. Therefore, FERC's order for Entergy Arkansas to share the Union Pacific Settlement benefits and its method for allocating the settlement was not arbitrary, capricious, or contrary to law. View "Arkansas Public Service Comm. v. FERC" on Justia Law
Arkansas Public Service Comm. v. FERC
The DC Circuit denied the Arkansas Commission's petition for review of a final FERC order. The FERC order held that an operating company withdrawing from a multi-state energy system must continue to share the proceeds of a pre-departure settlement with the other member companies. The court held that FERC had a lawful basis to order the sharing of the benefits of the settlement and was reasoned in its allocation methodology. Therefore, FERC's order for Entergy Arkansas to share the Union Pacific Settlement benefits and its method for allocating the settlement was not arbitrary, capricious, or contrary to law. View "Arkansas Public Service Comm. v. FERC" on Justia Law
Sierra Club v. Brown
The Florida Public Service Commission applied the correct standard of review in its final order approving a nonunanimous settlement agreement between certain parties relating to the rates or service of a public utility providing electric service. Further, competent, substantial evidence supported the Commission’s decision.At issue was whether the Commission properly applied its public interest standard in considering and approving the settlement. The Supreme Court held (1) the public interest was the appropriate standard to apply, and there was no need for the Commission to make an express individual prudence determination; (2) the final order adequately explained the Commission’s decision; and (3) the Commission’s finding that the settlement agreement was in the public interest was supported by competent, substantial evidence. View "Sierra Club v. Brown" on Justia Law
Entergy Texas, Inc. v. Nelson
At issue in this appeal was whether a certain Public Utility Commission of Texas (PUCT) order conflicted with a prior Federal Energy Regulatory Commission (FERC) order. The Fifth Circuit reversed the district court's order and rendered judgment in favor of PUCT and TIEC, holding that PUCT's order was not in conflict with any FERC order. The court held that FERC's orders requiring the Entergy compliance filing did not call for a retroactive reallocation of 2007 Bandwidth Payments; Entergy's compliance filing did not contain a retroactive reallocation that FERC approved in the 2015 FERC Order; the 2015 FERC Order did not retroactively reallocate 2007 Bandwidth Payments; and PUCT's Order was consistent with the 2015 FERC Order. View "Entergy Texas, Inc. v. Nelson" on Justia Law
City of Clarksville, Tennessee v. FERC
The DC Circuit granted a petition for review of FERC's assertion of Natural Gas Act (NGA) jurisdiction over the transportation and sale of natural gas for resale from the City of Clarksville, Tennessee to the City of Guthrie, Kentucky. As a preliminary matter, the court rejected FERC's standing and ripeness challenges to the court's authority to hear the petition for review. On the merits, the court saw no reason to deviate from the clear and unambiguous language of the statute, as well as FERC precedent, and held that Clarksville was a municipality that was exempt from regulation under NGA Section 7. The court also rejected FERC's alternative argument and held that the articulation of the scope of FERC's jurisdiction did not mean that Congress gave FERC jurisdiction over everything within the three areas listed by FERC. Therefore, the court vacated FERC's order. View "City of Clarksville, Tennessee v. FERC" on Justia Law
New Cingular Wireless PCS, LLC v. Public Utilities Commission
In 2016, the court of appeal held that if the advocacy of an intervenor contributes to a California Public Utilities Commission (CPUC) proceeding by assisting CPUC in the making of any order or decision (Pub. Util. Code 1802(i))[3]) that is part of the final resolution of the proceeding, whether or not on the merits, CPUC may determine whether, in its judgment, the intervenor’s contribution was substantial enough to merit a compensation award. The court of appeal vacated CPUC's subsequent award. CPUC's determination of “substantial contribution” to some interim or procedural “order or decision” is not alone, sufficient to justify "awarding every penny" claimed for work in connection with the proceeding as a whole. CPUC needed to show how its findings fit into the statutory requirement that compensable work be traceable to some “order or decision,” which is a measure of whether an intervenor achieved some degree of advocacy success. CPUC retains ample discretion to assess whether a given type of contribution counts as “substantial” in a proceeding. In exercising that discretion, CPUC may recognize that even small victories may have a major impact on the course of a proceeding, but there must still be some objective indication of successful advocacy. The remand decisions did not trace the amounts of fees and costs to specific orders or decisions. View "New Cingular Wireless PCS, LLC v. Public Utilities Commission" on Justia Law
New Cingular Wireless PCS, LLC v. Public Utilities Commission
In 2016, the court of appeal held that if the advocacy of an intervenor contributes to a California Public Utilities Commission (CPUC) proceeding by assisting CPUC in the making of any order or decision (Pub. Util. Code 1802(i))[3]) that is part of the final resolution of the proceeding, whether or not on the merits, CPUC may determine whether, in its judgment, the intervenor’s contribution was substantial enough to merit a compensation award. The court of appeal vacated CPUC's subsequent award. CPUC's determination of “substantial contribution” to some interim or procedural “order or decision” is not alone, sufficient to justify "awarding every penny" claimed for work in connection with the proceeding as a whole. CPUC needed to show how its findings fit into the statutory requirement that compensable work be traceable to some “order or decision,” which is a measure of whether an intervenor achieved some degree of advocacy success. CPUC retains ample discretion to assess whether a given type of contribution counts as “substantial” in a proceeding. In exercising that discretion, CPUC may recognize that even small victories may have a major impact on the course of a proceeding, but there must still be some objective indication of successful advocacy. The remand decisions did not trace the amounts of fees and costs to specific orders or decisions. View "New Cingular Wireless PCS, LLC v. Public Utilities Commission" on Justia Law
NorthWestern Corp. v. FERC
NorthWestern challenged FERC's determination that its proposed rate was not just and reasonable. The DC Circuit held that FERC's decision in this case was reasonable and reasonably explained where FERC reasonably modified NorthWestern's proposed cost-calculation ratio by excluding the megawatts associated with "regulation down" from the numerator; FERC did not arbitrarily increase the denominator of NorthWestern's proposed cost-calculation ratio; FERC's decision on fuel costs was reasonable and reasonably explained; and FERC acted reasonably by requiring NorthWestern to make separate Section 205 filings. The court also held that FERC properly decided to treat this case like an ordinary over-collection case and ordered a refund. Therefore, the court denied the petition for review. View "NorthWestern Corp. v. FERC" on Justia Law
Kansas Corporation Commission v. FERC
The DC Circuit dismissed KCC's petition for review, holding that KCC has not suffered an injury in fact sufficient to establish standing. KCC asserted that the Commission acted unlawfully by approving formula rates—which help determine the electric rates charged by public utilities to consumers in FERC jurisdictions—for future public utilities to use in operating electric transmission facilities. The court held that KCC failed to affirmatively demonstrate how it was adversely affected by the FERC's order and there was no substantial probability that the harms KCC identified would occur. View "Kansas Corporation Commission v. FERC" on Justia Law
New England Power Generators Association, Inc. v. FERC
Petitioners challenged four FERC orders that uphold the current iteration of the Tariff that governs electricity rates in New England. The Tariff, a patchwork of rules and orders adopted by the Independent System Operator of New England (ISO-NE) and approved by FERC, governs how Forward Capacity Market participants buy and sell future capacity. The DC Circuit granted the petitions for review, holding that FERC failed to offer adequate rationale and explanation in the challenged orders. In this case, FERC failed to respond to the substantial arguments put forward by petitioners and failed to square its decision with its past precedent. Accordingly, the court remanded for further proceedings. View "New England Power Generators Association, Inc. v. FERC" on Justia Law