Justia Government & Administrative Law Opinion Summaries

In 2008, the Florida Public Service Commission (PSC) granted the petitions for determination of need for new nuclear power plants proposed by Florida Power & Light company (FPL) and Progress Energy Florida (PEF). The PSC subsequently issued orders granting the utility companies' annual petitions for recovery of their associated preconstruction costs through customer rates. Southern Alliance for Clean Energy (SACE) opposed FPL and PEF's most recent cost recovery petitions, arguing that Fla. Stat. 366.93 unconstitutionally delegates legislative authority to the PSC and, alternatively, the PSC's order authorizing the utility companies to recover preconstruction costs was arbitrary and unsupported by competent, substantial evidence. The Supreme Court affirmed, holding that authorizing recovery of preconstruction costs through customer rates in order to promote utility company investment in new nuclear power plants, even though those plants might never be built, is a policy decision for the Legislature, not the Court. View "Alliance for Clean Energy v. Graham" on Justia Law

The manager of the Wyoming Universal Service Fund (WUSF) filed confidential reports with the Wyoming Public Service Commission (PSC) containing his recommendations for the WUSF assessment level for fiscal years 2009 and 2010. Upon notice from the PSC that public hearings would be held to consider the manager's reports, Qwest asked for contested case hearings. The PSC denied Qwest's requests, concluding that WUSF proceedings are legislative in nature. The PSC subsequently issued orders establishing the WUSF assessment levels as recommended by the manager. The Office of Consumer Advocate and Qwest filed petitions for review of the PSC order. The district court held that the PSC erred in denying Qwest's requests for contested case hearings, reversed the administrative orders, and ordered portions of the 2009 data to be provided to Qwest but denied the request for 2010 data. Four notices of appeal from the district court's order were filed. The Supreme Court affirmed, holding that Qwest was entitled to contested case hearings before the PSC. Remanded for contested case hearings. View "Pub. Serv. Comm'n of Wyo. v. Qwest Corp." on Justia Law

A fire destroyed a hydroponic tomato facility belonging to a new business, Sunnyland Farms, Inc. The day before the fire, Sunnyland's electricity had been shut off by its local utility, the Central New Mexico Electrical Cooperative (CNMEC), for nonpayment. Sunnyland's water pumps were powered by electricity, and without power, Sunnyland's facility had no water. Sunnyland sued CNMEC, alleging both that CNMEC had wrongfully suspended service, and if its electrical service had been in place, firefighters and Sunnyland employees would have been able to stop the fire from consuming the facility. After a bench trial, the court found CNMEC liable for negligence and breach of contract. The trial court awarded damages, including lost profits, of over $21 million in contract and tort, but reduced the tort damages by 80% for Sunnyland's comparative fault. It also awarded $100,000 in punitive damages. The parties cross-appealed to the Court of Appeals, which reversed the contract judgment, vacated the punitive damages, held that the lost profit damages were not supported by sufficient evidence, affirmed the trial court's offset of damages based on CNMEC's purchase of a subrogation lien, and affirmed the trial court's rulings on pre- and post-judgment interest. Sunnyland appealed. Upon review, the Supreme Court affirmed the Court of Appeals regarding the contract judgment, punitive damages, and interest, and reversed on the lost profit damages and the offset. The Court also took the opportunity of this case to re-examine the standard for consequential contract damages in New Mexico. View "Sunnyland Farms, Inc. v. Central N.M. Electric Cooperative, Inc." on Justia Law

Duke Energy Carolinas, LLC (Duke) filed an application with the North Carolina Utilities Commission (Commission) to increase its state retail electric service rates approximately 15.2 percent over current revenues. The application requested that rates be established using a return on equity (ROE) of 11.5 percent. The Commission approved a 10.5 percent ROE for Duke. The attorney general appealed the Commission's order, arguing that the order was legally deficient because it was not supported by competent, material, and substantial evidence and did not include sufficient conclusions and reasoning. The Supreme Court reversed, holding that the Commission failed to make the necessary findings of fact to support its ROE determination. Remanded to the Commission to enter sufficient findings of fact. View "State ex rel. Utils. Comm'n v. Attorney Gen." on Justia Law

Casitas Water District operates the Ventura River Project, which is owned by the U.S. Bureau of Reclamation and provides water to Ventura County, California, using dams, reservoirs, a canal, pump stations, and many miles of pipeline. In 1997, the National Marine Fisheries Service listed the West Coast steelhead trout as an endangered species and determined that the primary cause of its decline was loss of habitat due to water development, including impassable dams. Casitas faced liability if continued operation of the Project resulted in harm to the steelhead, 16 U.S.C. 1538(a)(1), 1540(a)–(b). In 2003, NMFS issued a biological opinion concerning operation of a fish ladder to relieve Casitas of liability. Casitas opened the Robles fish ladder, then filed suit, asserting that the biological opinion operating criteria breached its 1956 Contract with the government or amounted to uncompensated taking of Casitas’s property. The Claims Court dismissed, citing the sovereign acts doctrine. The Federal Circuit affirmed dismissal of the contract claim, but reversed dismissal of Casitas’s takings claim. The court again dismissed, holding that Casitas had failed to show that the operating criteria had thus far resulted in any reduction of water deliveries, so a takings claim was not yet ripe. The Federal Circuit affirmed. View "Casitas Mun. Water Dist. v. United States" on Justia Law

In 2004, the Berkeley County Water District and Sewer District filed requests with the Public Service Commission (PSC) to charge capacity improvement fees (CIFs) due to rapid population growth in the county. The PSC approved the requested CIFs. Petitioners subsequently filed a declaratory judgment action in the circuit court, seeking relief from paying the CIFs. The circuit court found that the PSC lacked jurisdiction to establish the CIFs. However, the Supreme Court found Petitioners had failed to exhaust their administrative remedies before the PSC and reversed. Subsequently, the PSC discontinued the CIFs, finding that the Sewer District and Water District no longer satisfied the criteria for charging the CIFs. Thereafter, the PSC granted Petitioners' motion to deny the Water and Sewer Districts' petitions for reconsideration. Petitioners appealed to challenge errors they alleged were contained in the PSC's final order. The Supreme Court affirmed, holding that Petitioners were judicially estopped from challenging the errors. View "Larry V. Faircloth Realty, Inc. v. Pub. Serv. Comm'n" on Justia Law

In 2008, the Public Utilities Commission approved a merger between FairPoint Communications-NNE (FairPoint) and Verizon Maine (Verizon). The merger order committed FairPoint to expanding DSL availability in Maine to certain percentages within certain periods of time. The merger order incorporated an amended stipulation presented by FairPoint and other parties. Approximately twenty months later, FairPoint filed for Chapter 11 bankruptcy. The Commission agreed to reduce FairPoint's ultimate broadband buildout obligations from ninety percent addressability to eighty-seven percent. Fairpoint subsequently notified the Commission that it had expanded broadband buildout to the level of eighty-three percent. The Commission disagreed, concluding that FairPoint had used the wrong measure of addressability and therefore overstated its results. At issue on appeal was how "addressability" would be measured when calculating FairPoint's broadband buildout commitments in Maine. The Supreme Court affirmed, holding (1) the merger order was an order of the Commission and not a consent decree, and therefore, the Commission did not err by failing to interpret the merger order in a manner consistent with the intent and understanding of the parties to the stipulation; and (2) the Commission did not err in its definition of "addressability." View "N. New England Tel. Operations LLC v. Pub. Utils. Comm'n" on Justia Law

Petitioner objected to an order of the FERC that allowed certain rates to be reduced as a corrective to the exercise of "supply-side" market power, but which declined to resolve petitioner's call for a parallel intervention to protect suppliers from what petitioner called "buy-side" market power. Concluding that the court had jurisdiction to consider petitioner's arguments, the court concluded that it had no reason to think that "the total effect of the rate order" was unjust and unreasonable, but the court had affirmative reason to believe that petitioner would have an adequate opportunity to pursue remedies for possible uneconomic entry. The court further concluded that the Commission did not abuse its discretion; in struggling to address the complexities posed by regional integration and independent systems operators, the Commission has pursued an iterative process with the court's explicit approval at least in one case, TC Ravenswood v. FERC; the specific context of the mitigation orders here exemplified the iterative process; and the court rejected petitioner's argument that the Commission violated due process and other obligations by neglecting to answer petitioner's arguments and proposals. Accordingly, the court denied the petition for review. View "TC Ravenswood, LLC v. FERC" on Justia Law

801 Skinker Boulevard Corporation (801), a corporation operating as a residential cooperative, sought a refund for sales taxes under Mo. Rev. Stat. 144.030.2, which indicates that utilities purchased for residential units for common areas and facilities shall be deemed to be for domestic use. The refund request concerned state sales tax charged and paid on electric and natural gas utilities purchased from 2006 through 2009. 801 filed for a refund of sales tax on its Union Electric (Ameren) and Laclede Gas Company (Laclede) bills. Ameren and Laclede also filed for refunds on behalf of 801. Ameren and Laclede's applications were denied. 801, Ameren, and Laclede (Taxpayers) subsequently filed a request for a refund of sales tax with the Administrative Hearing Commission, alleging that the utilities were purchased for domestic use by the individual owners and residents of 801 in accordance with section 144.030.2. The Commission denied the request. The Supreme Court reversed and ordered a full refund of the sales tax paid, holding that Taxpayers were entitled to the exemption and refund of their sales taxes pursuant to section 144.190.2, as 801's utility purchases were deemed by statute to be for "domestic use" and, thus, were exempt from sales tax. View "801 Skinker Boulevard Corp. v. Dir. of Revenue" on Justia Law

Petitioners filed a complaint with the Montana Public Service Commission (PSC), alleging that Northwestern Energy had been overcharging consumes for its street lighting services. The PSC dismissed the petition. The Supreme Court affirmed but remanded with instructions to remand the case to the PSC for a redetermination of whether to allow the filing of an amended complaint. On remand to the district court, Petitioners filed a motion seeking $1,137 in costs incurred while responding to objections before the PSC and courts. Petitioners also renewed a motion asking the district court to initiate an immediate rate reduction pending the PSC's final decision. The district court denied both of the Petitioners' requests and remanded to the PSC. The Supreme Court affirmed that order, holding that the district court did not err in (1) denying Petitioners their costs for the initial proceedings in district court and first appeal to the Supreme Court, and (2) denying Petitioners' request for a temporary rate decrease, pending the PSC's decision on remand. View "Williamson v. Mont. Pub. Serv. Comm'n" on Justia Law