by
The trial court held that the rate charged by Metropolitan Water District of Southern California for transporting water (“wheeling”) violated several laws and awarded the San Diego County Water Authority damages for breach of a water exchange agreement between the two agencies. The court held that the Authority lacked standing to challenge a provision in water conservation program contracts between the parties that penalizes the Authority for participating in litigation or supporting legislation to challenge or modify Metropolitan’s existing rate structure. The court of appeal remanded. The trial court erroneously held that although Metropolitan is required to pay its pro rata share of the costs of maintaining the California Aqueduct, these costs may not be considered in calculating Metropolitan’s wheeling charges, essentially because Metropolitan does not own the aqueduct. The inclusion of Metropolitan’s system-wide transportation costs, including transportation charges paid to the State Water Project, in the calculation of its wheeling rate does not violate the wheeling statutes, common law, or the parties’ agreement. The allocation of “water stewardship” charges to the wheeling rate was proper. The Authority has standing to challenge the unconstitutional anti-litigation condition. View "San Diego County Water Authority v. Metropolitan Water District of Southern California" on Justia Law

by
MISO, a nonprofit association of utilities, manages electrical transmission facilities for its members. Beginning in 2006, the Federal Energy Regulatory Commission (FERC) approved changes to MISO’s Tariff that enabled it to authorize network expansion projects and divide the costs among the member utilities. Duke and American own Ohio and Kentucky utilities. In July 2009, American gave notice that it planned to withdraw from MISO. Duke followed suit in May 2010. Under the Tariff, a utility cannot withdraw from MISO any earlier than the last day of the year following the year it gives notice. Two months after Duke announced its intention to withdraw, MISO proposed a new category of more expensive expansion projects. FERC approved this revision to the Tariff. In August 2010, MISO authorized the first Multi-Value Project. In December 2011, weeks before Duke’s scheduled departure, MISO approved 16 projects, to cost billions of dollars. MISO proposed amending the Tariff, so that ex-members could be charged for the costs of Multi-Value Projects approved before their departure. FERC approved that revision prospectively, holding that the revision imposed new obligations on withdrawing members and could not apply to Duke and American to charge them for the Multi-Value Projects. Other MISO Transmission Owners appealed, claiming that FERC departed from the reasoning of its prior orders. The Sixth Circuit denied a petition for review, stating that there is no presumption that costs for the Multi-Value Projects should be allocated up front. View "MISO Transmission Owners v. Federal Energy Regulatory Commission" on Justia Law

by
Petitioners challenged the Commissions' approval of revisions to the rules governing the buying and selling of "capacity" for markets operated by PJM. The DC Circuit held that the Commission balanced the benefits of the revised rules against the increased costs and reached a reasoned judgment. Therefore, the Commission's decision was not arbitrary nor capricious. The court deferred to the Commission's interpretation of the Federal Power Act, 16 U.S.C. 824e, because its interpretation of the Act's requirements was reasonable; deferred to the Commission's balancing of competing concerns in setting a penalty rate; and rejected challenges to the default offer cap, the year-round capacity commitment, orders approving PJM's demand resource rules, and imposition of Capacity Performance penalties on resources that fail to perform due to unit-specific constraints. Accordingly, the court denied the petitions for review. View "Advanced Energy Management Alliance v. FERC" on Justia Law

by
In this appeal, the issue presented for the Pennsylvania Supreme Court’s review centered on the language of the utility service facilities exception ("Utility Exception") to governmental immunity contained in the Political Subdivision Tort Claims Act ("Tort Claims Act"). The Commonwealth Court concluded that where a dangerous condition of the facilities of a utility system is created by the negligent action or inaction of a local agency or its employees, the Utility Exception did not apply. Because the Commonwealth Court misconstrued both the Utility Exception and the gravamen of the lawsuit in question, the Supreme Court reversed. View "Metropolitan Edison v. City of Reading" on Justia Law

by
The Town of Middlebury and sixteen residents and entities situated in Middlebury and nearby towns (collectively, Plaintiffs), appealed the dismissal of their appeal from the decision of the Connecticut Siting Council granting CPV Towantic, LLC’s petition to open and modify a certificate for an electric generating facility. The Supreme Court affirmed, holding that the trial court properly determined that the council had adequately considered neighborhood concerns in accordance with Conn. Gen. Stat. 16-50p(c)(1) where Plaintiffs failed to meet their burden of proving that the council acted contrary to law and ignored the neighborhood concerns that were presented to it. View "Town of Middlebury v. Connecticut Siting Council" on Justia Law

by
In 2010, Carestream Health, Inc. began purchasing gas transportation services from Public Service Company of Colorado. In 2013, Public Service discovered that it had undercharged Carestream by approximately $1.26 million for those services. When Public Service sought to recover a portion of that amount, Carestream refused to pay. Carestream filed a complaint with the Colorado Public Utilities Commission, claiming that Public Service had violated its tariff by failing to use “all reasonable means” to prevent billing errors, as required by the tariff. The Commission disagreed, and the district court affirmed the Commission’s decision. Carestream appealed, arguing that the Commission in effect, improperly added language to the tariff, thereby exceeding the Commission’s constitutionally and statutorily granted authority. Specifically, Carestream contended that the Commission added a requirement that billing errors be foreseeable before Public Service was required to take means to prevent them. Carestream also argued that the district court erred when it held that Carestream lacked standing to pursue a separate claim that Public Service violated its tariff by recovering from its general customer base that portion of the undercharge it was unable to recover from Carestream. The Colorado Supreme Court affirmed the district court, finding : (1) the Commission properly interpreted the tariff and acted pursuant to its authority; and (2) Carestream lacked standing to challenge Public Service’s recovery of the undercharge from its general customer base because Carestream suffered no injury from the action. View "Carestream Health, Inc. v. Colo. Pub. Utils. Comm'n" on Justia Law

by
Total Gas and two of its trading managers filed a declaratory judgment action against the Commission arguing that the Commission was precluded from adjudicating violations or imposing civil penalties because the Natural Gas Act (NGA) vests authority for those activities exclusively in federal district courts. The Fifth Circuit affirmed the Commission's motion to dismiss, holding that Total's suit was not ripe for review in light of controlling precedent, Energy Transfer Partners, L.P. v. FERC. In this case, instead of objecting to any actions FERC has already taken, Total seeks to preemptively challenge a FERC order that may never be issued. The court explained that all of Total's arguments were predicated on future events and were brought before FERC has even scheduled the matter for a hearing—let alone issued an order finding a NGA violation and imposing a civil penalty. View "TOTAL Gas & Power North America, Inc. v. FERC" on Justia Law

by
The New Hampshire Supreme Court affirmed an order of the New Hampshire Board of Tax and Land Appeals (BTLA) denying 77 of Public Service Company of New Hampshire's (d/b/a Eversource Energy (PSNH) 86 individual tax abatement appeals on property located in 31 municipalities for tax year 2011, and 55 abatement appeals for tax year 2012. The New Hampshire Public Utilities Commission (PUC) granted PSNH exclusive franchises to provide certain electricity services within its territory. A municipality’s selectmen appraise the value of the property located within the municipality, including utility property. For the appeals that it granted, the BTLA found that the municipal assessors acknowledged a material degree of overassessment of the property at issue. The BTLA noted that PSNH’s burden in a tax abatement appeal was to demonstrate that the municipal assessments were disproportionate.The BTLA found that PSNH had made only “very general assertions regarding regulation and its alleged impact on the market value of [PSNH’s] property.” It therefore concluded that PSNH had failed to provide sufficient probative evidence that the utility regulatory environment in which PSNH operated, considering both the benefits and burdens of such regulation, was so restrictive that any prospective purchaser would be limited to a return based upon net book value. Thus, merely identifying the presence of regulation that may impact the market value of property was insufficient. Based upon its review of the record, the Supreme Court agreed with the BTLA, and found that the BTLA's findings were supported by the record with respect to PSNH's remaining claims. View "Appeal of Public Service Company of New Hampshire d/b/a Eversource Energy" on Justia Law

by
New Hampshire Electric Cooperative, Inc. (NHEC) filed tax abatement appeals to the Board of Tax and Land Appeals (BTLA) for 23 municipal assessments of its property that occurred in 2011 and 2012. The BTLA held a consolidated hearing over nine days between January and February 2015 regarding NHEC’s tax abatement appeals. During the hearing, NHEC presented expert witness testimony and an appraisal of NHEC’s property from George Lagassa, a certified general real estate appraiser and the owner of Mainstream Appraisal Associates, LLC. In his appraisals, Lagassa estimated the market value of NHEC’s property by reconciling the results of four valuation approaches: a sales comparison approach; an income approach, which estimated the value of NHEC’s property by capitalizing the company’s net operating income; a cost approach, which estimated the net book value (NBV) of NHEC’s property by calculating the original cost less book depreciation (OCLBD) of NHEC’s property; and a second cost approach, which estimated the value of NHEC’s property by calculating the reproduction cost new less depreciation (RCNLD) of NHEC’s property. NHEC appeals the BTLA order denying 16 of NHEC’s 23 individual tax abatement appeals regarding its property. The New Hampshire Supreme Court found no reversible error in the BTLA’s order and affirmed it. View "Appeal of New Hampshire Electric Cooperative, Inc." on Justia Law

by
The Supreme Judicial Court affirmed the order of the Maine Public Utilities Commission approving a stipulation regarding Efficiency Maine Trust’s Third Triennial Plan for energy efficiency, holding that the Commission did not err in interpreting and applying the relevant statutes. The Conservation Law Foundation appealed from the Commission’s order approving the stipulation, arguing that the order and the terms of the stipulation disregarded statutory mandates set forth in the Efficiency Maine Trust Act. See Me. Rev. Stat. Ann. tit. 35-A, 10101-10123. The Supreme Judicial Court held that the Commission’s order and the stipulation did not violate statutory mandates for electric energy efficiency or the statutory mandate to assess each natural gas utility an amount to capture all maximum achievable cost-effective energy efficiency savings. View "Conservation Law Foundation v. Public Utilities Commission" on Justia Law