Justia Government & Administrative Law Opinion Summaries

Articles Posted in Utilities Law
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Section 309 of the Federal Power Act (FPA), 16 U.S.C. 825h, vests the Commission with broad remedial authority, including the authority to grant recoupment when it is justified; Section 201(f) does not limit the authority of the Commission to grant relief under Section 309 with respect to matters that are beyond the strictures of Sections 201(f) and 205; and an order of recoupment, as distinguished from an order to refund under Section 205, is beyond the strictures of Sections 201(f) and 205. In this case, Chehalis sought relief from the Commission by filing a Motion for an Order Requiring Recoupment of Payments, but the Commission concluded that it could not order recoupment because the Commission's refund authority does not extend to exempt public utilities such as the Intervenor Bonneville. The DC Circuit held that the Commission erred when it held that it lacked the authority to grant the Order Requiring Recoupment where the Commission clearly had jurisdiction over the subject of this dispute and the Commission retained the authority to order Bonneville to return the funds when the agency acknowledged that its initial order was mistaken. The court granted in part and denied in part Chehalis's petitions for review, and remanded for further proceedings. View "TNA Merchant Projects v. FERC" on Justia Law

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In consolidated cases, two municipalities sought to provide electric service through municipal electric utilities. Central to both cases was the applicability Michigan Administrative Code Rule 411 (sometimes referred to as a utility’s right to first entitlement). Rule 460.3411 (Rule 411) was inapplicable when a municipal utility is involved and has not consented to the jurisdiction of the Michigan Public Service Commission (PSC). Additionally, under the circumstances of each case, the Michigan Supreme Court found there was not a customer already receiving service from another utility; accordingly, MCL 124.3 did not prevent either plaintiff from providing electric service. View "City of Holland v. Consumers Energy Co." on Justia Law

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Section 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA), 16 U.S.C. 824a-3, seeks to reduce reliance on fossil fuels by increasing the number of energy-efficient cogeneration and small power-production facilities. Oregon implements its PURPA responsibilities largely through its Public Utility Commission (OPUC), which has directed utilities subject to its jurisdiction to draft off-the-shelf, standard-form power-purchase agreements that OPUC then reviews for compliance with PURPA. OPUC has approved two standard-form power-purchase agreements submitted by petitioner Portland General Electric. Petitioner PáTu Wind Farm, a six-turbine, nine-megawatt generator in rural Oregon, is classified under PURPA as a small power producer. This appeal stems from the parties' dispute over the nature of Portland General's purchase obligation. The Commission ruled that under PURPA, Portland General must purchase all of PáTu’s power, though it rejected PáTu’s insistence that Portland General do so by utilizing a technology known as dynamic scheduling. The court concluded that PáTu’s petition dealing exclusively with Portland's refusal to utilize dynamic scheduling is without merit. Accordingly, the court denied PáTu’s petition. The court dismissed Portland's petition challenging the Commission's ruling that it must purchase all of PáTu’s power for lack of jurisdiction because FERC's orders were advisory. View "Portland General Electric Comp v. FERC" on Justia Law

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Petitioners challenged the Commissions' determinations following compliance filings by the regional transmission organization for New England's electric grid. The court concluded that the Transmission Owners have standing to bring their challenges, but concluded that the Commission's orders were not inconsistent with its past decisions; the Commission did not apply the wrong legal standard for measuring whether the Mobile-Sierra presumption had been overcome; and the Commission's determination was in accord with the evidence before it. In regard to State Petitioner's challenges, the court concluded that, in light of the clarifications made by the Commission, there is no inconsistency with Order No. 1000. The court also concluded that the Commission did not exceed its bounds of authority under the Federal Power Act (FPA), 16 U.S.C. 824(a). Accordingly, the court denied the petitions for review. View "Emera Maine v. FERC" on Justia Law

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Transmissions Owners provide transmission services for customers in New England. Consumers, Massachusetts and various consumer-side stakeholders, filed suit under section 206 of the Federal Power Act (FPA), 16 U.S.C. 824e(a), alleging that Transmission Owners' base return on equity (ROE) had become unjust and unreasonable. At issue are FERC's orders in the section 206 proceeding. Both Transmission Owners and Customers filed petitions for review challenging whether FERC satisfied the statutory requirements under section 206 in setting a new ROE. The court explained that, to satisfy its dual burden under section 206, FERC was required to do more than show that its single ROE analysis generated a new just and reasonable ROE and conclusively declare that, consequently, the existing ROE was per se unjust and unreasonable. Therefore, the court concluded that, because FERC's single ROE analysis failed to include an actual finding as to the lawfulness of Transmission Owners' existing base ROE, FERC acted arbitrarily and outside of its statutory authority in setting a new base ROE for Transmission Owners. The court also concluded that FERC failed to provide any reasoned basis for selecting 10.57 percent as the new base ROE. Accordingly, the court granted the petitions for review, vacated FERC's orders, and remanded for further proceedings. View "Maine v. FERC" on Justia Law

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Florida Public Utilities Company (FPUC), an electric utility that relies solely on wholesale purchase power agreements with other electric utilities, entered into a settlement agreement with the Office of Public Counsel (OPC) in resolution of its then-pending petition for an increase in base rates. The Florida Public Service Commission unanimously approved the settlement agreement. FPUC subsequently petitioned the Commission for approval of its fuel adjustment and purchased power cost recovery factors for the year 2016. Contrary to the terms of the settlement agreement, FPUC’s petition sought to recover costs associated with constructing a new interconnection with Florida Power & Light Company (FPL). The Commission ultimately approved the recovery of the entire FPL interconnection costs. The Supreme Court reversed, holding (1) the Commission departed from the requirements of law by failing to properly consider and apply the terms of the settlement agreement with regard to FPUC’s petition; (2) the Commission erred in concluding that such construction capital expenditures are capable of recovery through fuel clause proceedings; and (3) the settlement agreement prohibited FPUC from petitioning the Commission for recovery of costs associated with the transmission interconnection project through fuel clause proceedings. View "Citizens of the State of Florida v. Graham" on Justia Law

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This action arose out of the construction of a facility by United Plant Services (UPS), in Trout, to which Entergy Louisiana, LLC (Entergy) provided electric services. Entergy’s competitor, Concordia Electric Cooperative, Inc., filed a complaint with the Louisiana Public Service Commission (LPSC) asserting that Entergy’s service to the UPS facility violated La.R.S. 45:123 and LPSC General Order No. R-28269, collectively referred to as the 300 Foot Rule, by providing service to UPS at a point of connection Concordia presumed to be within 300 feet of its existing electrical lines. An ALJ recommended the LPSC dismiss Concordia's claims because the judge found Concordia failed to show UPS or Entergy had intentionally placed the building and meter in circumvention of the 300 Foot Rule (enabling UPS to select Entergy as opposed to Concordia as its electric service provider). Concordia appealed, and a district court reversed the LPSC order. Because the Supreme Court found the LPSC did not act arbitrarily and capriciously in reaching its decision, it reversed. View "Entergy Louisiana, LLC v. Louisiana Public Svc. Comm'n" on Justia Law

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Missouri American Water Company (MAWC) filed a petition to charge an infrastructure system replacement surcharge to its St. Louis County customers. The Public Service Commission (PSC) approved the petition. The Office of the Public Counsel appealed, arguing that the PSC lacked the authority to grant the petition because St. Louis County did not meet Mo. Rev. Stat. 393.1000-393.1006’s threshold population requirement at the time PSC approved the surcharge. The Office of the Public Counsel appealed. While the appeal was pending, MAWC and PSC reached an agreement establishing a new rate base that incorporated the costs of the MAWC projects for all then-existing surcharges. The Supreme Court dismissed this case as moot, holding (1) because the surcharge is no longer in effect and no effective relief may be granted, the issue as to whether MAWC can utilize the surcharge provisions of section 393.1003 is moot; and (2) the issues presented on appeal did not meet the requirements for an exception to the mootness doctrine. View "In re Petition of Missouri-American Water Company for Approval to Change its Infrastructure System Replacement Surcharge" on Justia Law

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This was the third appeal of this case arising from the efforts of appellee Southern LNG, Inc. (“Southern”) to compel State Revenue Commissioner Lynnette Riley (“the Commissioner”) to recognize Southern as a “public utility” under OCGA 48-5-511 and to accept Southern’s ad valorem property tax returns. On remand, the trial court granted summary judgment to the Commissioner on a mandamus claim, holding that Southern had an adequate alternative remedy. In a prior appeal, the Supreme Court laid out for the parties in considerable detail the potential legal and procedural issues bearing on the question of whether the Commissioner could become a party or be bound by a judgment rendered in the tax appeals. On remand, Southern and the Commissioner filed renewed cross-motions for summary judgment. The trial court granted summary judgment in favor of Southern, holding that it had no “equally convenient, complete and beneficial” remedy other than mandamus, and denied the Commissioner’s motion for summary judgment, and directed the Commissioner “to accept [Southern’s] ad valorem property tax returns pursuant to OCGA 48-5-511(a) instanter.” The Commissioner appealed, and the Supreme Court this time reversed, finding Southern did not show the Commissioner, in refusing to accept Southern’s ad valorem tax returns, violated a “clear legal duty,” that she failed to act, or that her actions were arbitrary, capricious and unreasonable, amounting to a gross abuse of discretion, so as to entitle Southern to a writ of mandamus. View "Riley v. Southern LNG, Inc." on Justia Law

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In February 2006, BellSouth Telecommunications, Inc., and BellSouth MNS, Inc., filed an ex parte motion for a protective order in the Chancery Court, seeking to protect certain documents. The documents fell into the following four categories: (1) an August 2005 proposal submitted by BellSouth to the Mississippi Department of Information Technology Services in response to the Department’s request for telecommunications products and services; (2) the Telecommunications Products and Service Agreement between BellSouth and the Department dated November 2005; (3) correspondence between BellSouth and the Department related to the first two documents; and (4) related BellSouth marketing materials. Following legislative amendments in 2015 to the Mississippi Public Records Act of 1983 and to Mississippi Code Section 25-1-100, CellularSouth sought production of the proposal and the contract between the Department and BellSouth. After review, the Supreme Court found the chancery court erred in its interpretation of the amended Mississippi Code Section 25-61-11 when it entered an order continuing to protect the contract from production. Furthermore, the Court held that, because the rights in question in the case sub judice were created by statute, the Public Records Act, as amended, governed this dispute. Accordingly, the Court reversed and remanded for further proceedings. View "Cellular South, Inc. v. BellSouth Telecommunications, LLC" on Justia Law