Justia Utilities Law Opinion Summaries

Under the Natural Gas Act, to build an interstate pipeline, a natural gas company must obtain from the Federal Energy Regulatory Commission (FERC) a certificate of "public convenience and necessity,” 15 U.S.C. 717f(e). A 1947 amendment, section 717f(h), authorized certificate holders to exercise the federal eminent domain power. FERC granted PennEast a certificate of public convenience and necessity for a 116-mile pipeline from Pennsylvania to New Jersey. Challenges to that authorization remain pending. PennEast sought to exercise the federal eminent domain power to obtain rights-of-way along the pipeline route, including land in which New Jersey asserts a property interest. New Jersey asserted sovereign immunity. The Third Circuit concluded that PennEast was not authorized to condemn New Jersey’s property.The Supreme Court reversed, first holding that New Jersey’s appeal is not a collateral attack on the FERC order. Section 717f(h) authorizes FERC certificate holders to condemn all necessary rights-of-way, whether owned by private parties or states, and is consistent with established federal government practice for the construction of infrastructure, whether by government or through a private company.States may be sued only in limited circumstances: where the state expressly consents; where Congress clearly abrogates the state’s immunity under the Fourteenth Amendment; or if it has implicitly agreed to suit in “the structure of the original Constitution.” The states implicitly consented to private condemnation suits when they ratified the Constitution, including the eminent domain power, which is inextricably intertwined with condemnation authority. Separating the two would diminish the federal eminent domain power, which the states may not do. View "PennEast Pipeline Co. v. New Jersey" on Justia Law

The Supreme Court held that the amendments that the legislature made in 2017 to Ky. Rev. Stat. Chapter 109 to give home rule cities located in a county containing a consolidated local government certain rights with respect to the waste management district in the county did not comply with the requirement of Kentucky Constitution Section 156a.At issue on appeal was whether the legislature's amendment to Chapter 109 in HB 246 (the Act) complied with the requirement of Section 156a, which permits the legislature to classify cities on certain bases but requires that all legislation relating to cities with a certain classification shall apply equally to all cities within the same classification. The circuit court concluded that the balance of Act was unconstitutional. The court of appeals affirmed in part and reversed in part. The Supreme Court affirmed in part and reversed in part, holding that Sections 1, 3 and 4 of the Act violated Kentucky Constitution Section 156a. View "Louisville/Jefferson County Metro Government Waste Management District v. Jefferson County League of Cities, Inc." on Justia Law

In a prior opinion, a panel of the Court of Appeal determined the tiered water rate system used by the City of San Juan Capistrano (the City) violated the California Constitution. The City offered to refund its water ratepayers the difference between what they paid and what they should have paid for a 10-month period of time, in exchange for a release of other claims against the City related to the tiered water rate system. Plaintiffs Hootan Daneshmand, Brian Montgomery, and John Bottjer were ratepayers in the City. Bottjer signed the release and received a refund; Daneshmand and Montgomery did not. Plaintiffs later filed a notice of claim against the City, on behalf of themselves and a putative class of ratepayers, to recover the difference between what they paid and what they should have paid during the entire time the tiered water rate system was in place. The City denied the notice of claim, which was filed more than one year after the last bill under the tiered water rate system was due, as untimely under Government Code section 911.2. The Court of Appeal determined claims of Bottjer and the other ratepayers who obtained a refund from the City were barred by the release those ratepayers signed. Contrary to Plaintiffs’ arguments on appeal, the release was valid and enforceable. Further, Plaintiffs’ causes of action for breach of contract and breach of the implied covenant of good faith and fair dealing were properly dismissed by the trial court. Finally, the claims of Daneshmand, Montgomery, and the other ratepayers who did not accept the City’s refund offer were barred because the notice of claim was filed more than one year after the claims accrued. Plaintiffs failed to show that waiver or any other legal or equitable doctrine affected the application of Government Code section 911.2 in this case. View "Daneshmand v. City of San Juan Capistrano" on Justia Law

After the passage of Proposition 218, Sacramento voters approved a requirement that city enterprises providing water, sewer, storm drainage, and solid waste services pay a total tax of 11% of their gross revenues from user fees and charges. Nineteen years later, plaintiff-respondent Russell Wyatt brought a petition for writ of mandate and complaint for declaratory relief against the City challenging its fees and charges for utility services under article XIII D, section 6, subdivision (b) of the California Constitution (added by Prop. 218, as approved by voters, Gen. Elec. (Nov. 5, 1996)). It was undisputed that the City set these fees and charges at rates sufficient to fund the payment of the tax to its general fund. The trial court issued a writ of mandate and judgment in Wyatt’s favor. The Court of Appeal reversed the judgment and directed the trial court to vacate its writ of mandate. By approving the tax in 1998, Sacramento voters increased the cost of providing utility services, rendering those costs recoverable as part of their utility rates and the subsequent transfer of funds permissible under article XIII D. View "Wyatt v. City of Sacramento" on Justia Law

The Supreme Court dismissed this appeal stemming from an illegal-exaction case challenging whether a court-ordered annual service fee charged to customers by Ozark Mountain Solid Waste District to repay Ozark Mountain's creditors is statutorily or constitutionally permitted, holding that the order was not a final order.Specifically, the Supreme Court held that the order in this illegal exaction case was not a final, appealable order because it contemplated further action by the parties and the circuit court. Further, the record demonstrated that the Attorney General did not seek a Rule 54 certificate to certify the issues presented for appeal. Because the order was not a final order, the Supreme Court dismissed the appeal. View "Ozark Mountain Solid Waste District v. JMS Enterprises, Inc." on Justia Law

Environmental groups challenged the constitutionality of Public Resources Code section 25531, which limits judicial review of decisions by the Energy Resources Conservation and Development Commission on the siting of thermal power plants. Section 25531(a) provides that an Energy Commission siting decision is “subject to judicial review by the Supreme Court of California.” The plaintiffs contend this provision abridges the original jurisdiction of the superior courts and courts of appeal over mandate petitions, as conferred by California Constitution Article VI, section 10. Section 25531(b) provides that findings of fact in support of a Commission siting determination “are final,” allegedly violating the separation of powers doctrine by depriving courts of their essential power to review administrative agency findings (Cal. Const., Art. III, section 3; Art. VI, section 1).The court of appeal affirmed summary judgment in favor of the plaintiffs. The Article VI grant of original jurisdiction includes the superior courts and courts of appeal and may not be circumscribed by statute, absent some other constitutional provision. Legislative amendments to section 25531 have broken the once-tight link between the regulatory authority of the Public Utilities Commission (PUC) and Energy Commission power plant siting decisions, such that the plenary power Article XII grants the Legislature over PUC activities no longer authorizes section 25531(a). Section 25531(b) violates the judicial powers clause by preventing courts from reviewing whether substantial evidence supports the Commission’s factual findings. View "Communities for a Better Environment v. Energy Resources Conservation & Development Commission" on Justia Law

The Supreme Court affirmed the judgment of the circuit court affirming Defendant's magistrate court conviction for operating an onsite wastewater system without a permit, holding that the City's ordinance as applied to Defendant was not an ex post facto law.Defendant was convicted for failure to obtain a permit in violation of Rapid City Municipal Code (RCMC) 13.20.800. On appeal, Defendant argued that RCMC 13.20.800 violated the ex post facto clauses of the state and federal constitutions, was preempted by state administrative rules, and exceeded Rapid City's authority since Defendant lived outside of the city's limits. The circuit court affirmed the conviction. The Supreme Court affirmed, holding (1) the City's sewerage permit ordinance was not an ex post facto law because it punished Defendant for conduct occurring after the ordinance was enacted; (2) RCMC 13.20.800 does not conflict with state administrative regulations; and (3) there was no merit to Defendant's argument that the City lacked authority to enforce the ordinance beyond its municipal boundaries. View "City Of Rapid City v. Schaub" on Justia Law

The Supreme Court held that the exemption in Cal. Const. art. II, 9, subd.(a) applies to measures setting municipal water rates, and therefore, municipal water rates and other local utility charges are not subject to referendum.To prevent the referendum process from disrupting essential governmental operations, the California Constitution exempts "statutes providing for tax levies or appropriations for usual current expenses" of the government. See Cal. Const. art. II, 9, subd.(a). After the City of Dunsmuir passed Resolution 2016-02 establishing a five-year plan for a $15 million upgrade to the City's water storage and delivery infrastructure Plaintiff submitted a petition for a referendum seeking to overturn the Resolution. The City declined to place the referendum on the ballot, and Plaintiff filed a petition for writ of mandate seeking to compel the City to place the referendum on the ballot. The trial court denied the petition. The Court of Appeal reversed, concluding that the exemption did not apply because the water charges were a "property-related fee" and not a "tax." The Supreme Court reversed, holding that the City's water rates, adopted in the Resolution, fall within the exemption for "tax levies" and therefore are not subject to referendum. View "Wilde v. City of Dunsmuir" on Justia Law

The Supreme Court held that the Arizona Corporation Commission may appoint an interim manager to operate a public service corporation (PSC) based on its permissive authority under Ariz. Const. art. XV, 3.Under article 15, section 3, the Commission has permissive authority to make and enforce reasonable orders for the convenience, comfort, safety, and health of the public. Concluding that it was necessary to protect public health and safety, the Commission appointed EPCOR Water Arizona as an interim manager for Johnson Utilities, LLC, an Arizona PSC. Johnson filed a special action seeking to enjoin its enforcement, but the court of appeals denied relief, holding that the Commission has both constitutional and statutory authority to appoint an interim manager of a PSC. The Supreme Court vacated the court of appeals' opinion, holding that the Commission may appoint an interim manager based on its permissive authority under article 15, section 3 of the Arizona Constitution. View "Johnson Utilities, LLC v. Arizona Corp. Commission" on Justia Law

Plaintiffs filed suit challenging two policies related to the provision of basic utility services from the City on the ground that the policies have a disproportionate impact on black and Hispanic residents.The Eleventh Circuit vacated the district court's dismissal of the complaint for failure to state a claim, holding that section 3604(b) of the Fair Housing Act is unambiguous and reaches certain post-acquisition conduct, including post-acquisition conduct related to the provision of services. The panel held that a service within the meaning of section 3604(b) must be a housing-related service that is directly connected to the sale or rental of a dwelling, and the water, gas, and electricity services at issue here fall within the scope of section 3604(b). Finally, the court rejected the City's argument that it is not a housing provider subject to section 3604(b), and held that section 3604(b) does not limit its applicability in such a manner and the court's case law has never held that only housing providers are subject to liability thereunder. Accordingly, the court remanded for further proceedings. View "Georgia State Conference of the NAACP v. City of LaGrange" on Justia Law