Justia Utilities Law Opinion Summaries

Summit Carbon Solutions, LLC plans to build an interstate pipeline through Iowa, passing through Shelby and Story Counties. Both counties enacted ordinances imposing various requirements on pipelines, including setback, emergency response plan, and local permit requirements. Summit challenged these ordinances, arguing they were preempted by the federal Pipeline Safety Act (PSA) and Iowa law. The district court granted summary judgment in favor of Summit, permanently enjoining the enforcement of the ordinances.The United States District Court for the Southern District of Iowa reviewed the case and ruled in favor of Summit, finding that the PSA and Iowa law preempted the counties' ordinances. The court issued a permanent injunction against the enforcement of the ordinances. The counties appealed the decision.The United States Court of Appeals for the Eighth Circuit reviewed the case de novo. The court held that the PSA preempts the Shelby and Story County ordinances' setback, emergency response, and abandonment provisions. The court found that the ordinances were safety standards, which are preempted by the PSA. Additionally, the court held that the ordinances were inconsistent with Iowa law, as they imposed additional requirements that could prohibit pipeline construction even if the Iowa Utilities Commission (IUC) had granted a permit. The court affirmed the district court's judgment in both cases but vacated and remanded the judgment in the Story County case to the extent it addressed a repealed ordinance. View "Couser v. Shelby County" on Justia Law

Petitioners, who own New York’s electric-transmission grid, sought to finance upgrades required when new power sources connect to the grid. This would allow them to raise rates and earn a return on these investments. However, the Federal Energy Regulatory Commission (FERC) denied their requests to change the rules prohibiting owner upgrade funding.The transmission owners filed two petitions with FERC on April 9, 2021, under Sections 205 and 206 of the Federal Power Act, requesting amendments to the Open Access Transmission Tariff (OATT) to allow them to fund interconnection upgrades. On September 3, 2021, FERC rejected the Section 205 filing, stating that the owners’ agreement with the New York Independent System Operator (NYISO) limited their Section 205 rights. FERC also dismissed the Section 206 complaint, concluding that the owners failed to demonstrate that the existing funding mechanism was unjust, unreasonable, unduly discriminatory, or preferential. The owners’ requests for rehearing were deemed denied by operation of law on November 4, 2021, and FERC issued a new order on March 24, 2022, modifying its original orders.The United States Court of Appeals for the District of Columbia Circuit reviewed the case and upheld FERC’s decisions. The court found that FERC acted reasonably in dismissing the Section 205 filing, as the owners had relinquished their rights to file for changes to the OATT without NYISO’s approval. The court also agreed with FERC’s dismissal of the Section 206 complaint, noting that the owners failed to provide sufficient evidence that the current rates were unjust or unreasonable. The court concluded that FERC’s orders were not arbitrary or capricious and denied the owners’ petitions for review. View "Central Hudson Gas & Electric Corporation v. FERC" on Justia Law

The case involves the Huntington Sanitary Board (HSB) challenging an order by the Public Service Commission of West Virginia (PSC) that designated HSB as the most suitable capable proximate utility (CPU) to acquire and operate the failing sewer system of the Hubbard Heights subdivision in Wayne County. The sewer system, originally servicing 27 customers, had fallen into disrepair and ceased operations, posing health and environmental risks. The PSC's order was issued under the Distressed and Failing Utilities Act, which aims to remediate struggling utilities.The PSC initiated proceedings after a petition was filed by a former president of the Hubbard Heights Homeowners Association (HOA). The PSC found that the sewer system met the statutory definition of a failing utility and considered various alternatives to acquisition, ultimately determining that acquisition by a CPU was necessary. HSB, along with other utilities, was identified as a potential CPU. The PSC held public and evidentiary hearings, during which no utility expressed willingness to acquire Hubbard Heights. The PSC designated HSB as the most suitable CPU based on its size, financial capacity, and proximity.HSB appealed, arguing that the PSC lacked jurisdiction because the customer count had fallen below the statutory threshold of 25 and that the PSC failed to consider alternatives to acquisition adequately. The Supreme Court of Appeals of West Virginia reviewed the case, affirming the PSC's order. The court held that the PSC had continuing jurisdiction over Hubbard Heights despite the reduced customer count, as the utility had not sought to be divested of its status, and the PSC had not relinquished jurisdiction. The court also found that the PSC had considered alternatives and provided a reasoned analysis in designating HSB as the most suitable CPU, complying with the statutory requirements. View "Huntington Sanitary Board v. Public Service Commission" on Justia Law

Samuel and Peggy Edwards, residents of Rexburg, Idaho, refused to allow PacifiCorp, doing business as Rocky Mountain Power Company, to install a smart electrical meter on their property due to health concerns. Rocky Mountain considered this refusal a violation of its terms of service, which required access to electrical meter bases. After negotiations failed, Rocky Mountain informed the Edwards that their electrical service would be terminated unless they allowed the installation. The Edwards filed a formal complaint with the Idaho Public Utilities Commission (PUC), arguing they had not denied access and should be allowed to opt-out of the smart meter installation.The PUC consolidated the Edwards' complaint with similar complaints from other customers and granted Rocky Mountain's motion to dismiss, concluding that the Edwards had not provided evidence that smart meters presented a legitimate safety concern and that Rocky Mountain had the authority to access and replace meters. The Edwards' motion for reconsideration was also dismissed by the PUC, leading them to appeal to the Idaho Supreme Court.The Idaho Supreme Court reviewed whether the PUC properly determined that Rocky Mountain had the authority to access the Edwards' property to replace the existing meter with a smart meter. The Court affirmed the PUC's decision, concluding that the tariff provisions allowed Rocky Mountain to access and replace meters. The Court also found that the Edwards' constitutional arguments were waived due to insufficient support and authority. The PUC's orders dismissing the Edwards' complaint and denying reconsideration were affirmed. View "Edwards v. IPUC" on Justia Law

The case involves the City of Jackson, Mississippi's water-related utilities, which faced significant failures. The United States and the State of Mississippi brought enforcement actions under the Clean Water Act (CWA) and the Safe Drinking Water Act (SDWA) against the City for violations, including allowing raw sewage to be discharged into waterways and failing to comply with the Environmental Protection Agency's (EPA) orders. The district court appointed a federal receiver, Edward Henefin, as interim third-party manager (ITPM) to manage the City's water and sewer systems. Henefin, operating through JXN Water, Inc., developed new utility rates, including a discount for residents receiving Supplemental Nutrition Assistance Program (SNAP) benefits.The United States District Court for the Southern District of Mississippi ruled that the ITPM's rate-setting activities constituted a federal assistance program under the Food and Nutrition Act of 2008 (FNA), thereby allowing access to SNAP recipient data. The United States and Mississippi opposed this, arguing that such disclosure violated the FNA's privacy protections for SNAP recipients.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that the ITPM's rate-setting activities did not qualify as a federal assistance program under the FNA. The court emphasized that the term "federal assistance program" implies administration by a federal entity, and the ITPM's authority derived from municipal law, not federal law. The court also noted that the statutory history and context supported a narrow interpretation of "federal assistance program." Consequently, the court reversed the district court's order and remanded the case for further proceedings. View "Mississippi v. JXN Water" on Justia Law

Sunnyside Park Utilities, Inc. (SPU) provides water and sewer services to commercial properties in Bonneville County, Idaho. Donald Sorrells, the owner of a lot in the Sunnyside Industrial & Professional Park, received a "Will Serve" letter from SPU in 2018, agreeing to provide water and sewer services based on his representation that he would install only two restrooms. However, Sorrells installed additional unauthorized water and sewer connections, leading to repeated excessive discharges into SPU's septic system. Despite multiple notices and requests for remediation from SPU, Sorrells failed to address the issues adequately, resulting in SPU seeking a declaratory judgment against him.The District Court of the Seventh Judicial District of Idaho found that Sorrells was a persistent violator of SPU's Sewer Rules and Regulations but determined that the Idaho Public Utilities Commission (IPUC) retained original jurisdiction over SPU's water system. The court denied SPU's requests for costs and attorney fees, leading to appeals from both parties.The Supreme Court of Idaho reviewed the case and affirmed the district court's judgment. The court held that the district court did not err in granting a declaratory judgment to SPU regarding Sorrells' violations of the sewer rules. However, it also upheld the district court's determination that the IPUC initially had jurisdiction over SPU's water system, as SPU had not established its nonprofit status at the time of filing. The court further affirmed the denial of attorney fees and costs to SPU, concluding that the Rules and Regulations did not expressly provide for such fees.On appeal, the Supreme Court declined to consider the merits of Sorrells' arguments due to his failure to comply with the Idaho Appellate Rules. The court also denied SPU's request for attorney fees and costs on appeal, as SPU did not prevail on its cross-appeal. View "Sunnyside Park Utilities, LLC v. Sorrells" on Justia Law

Great Oaks Water Company, a private water retailer, sued the Santa Clara Valley Water District, alleging that the district’s groundwater pumping charges were unlawful taxes levied without voter approval, violating Proposition 26. Great Oaks argued that the charges exceeded the reasonable costs of the governmental activity and were unfairly allocated, benefiting other water users to which Great Oaks had no access. Additionally, Great Oaks contended that the district’s use of ad valorem property taxes to subsidize agricultural groundwater pumping charges was unconstitutional.The trial court ruled in favor of the water district, finding that the groundwater charges did not exceed the costs of the district’s overall water management program. The court held that it was reasonable to use these charges to pay for the program because non-agricultural groundwater pumpers, like Great Oaks, received significant benefits from it. The charges were deemed reasonably allocated on a volumetric basis, and the agricultural discount was found constitutionally valid as it was funded by ad valorem property taxes, not by non-agricultural pumpers.The California Court of Appeal for the Sixth Appellate District affirmed the trial court’s decision. The appellate court concluded that the groundwater charges were not “taxes” under Proposition 26 because they fell under exceptions for specific benefits conferred or government services provided directly to the payor. The court found that the water district proved by a preponderance of the evidence that the charges were no more than necessary to cover the reasonable costs of the governmental activity and that the costs were fairly allocated to Great Oaks. The court also upheld the use of ad valorem taxes to fund the agricultural discount, finding no violation of the California Constitution or the Water Code. View "Great Oaks Water Co. v. Santa Clara Valley Water Dist." on Justia Law

Volcano Telephone Company, a rural telephone service provider, receives subsidies from the California High-Cost Fund-A (A-Fund) administered by the Public Utilities Commission (PUC). Volcano Vision, Inc., an affiliate, uses Volcano Telephone’s broadband-capable facilities, subsidized by the A-Fund, to deliver broadband services without contributing to the underlying costs. The PUC considered Volcano Vision’s net revenues in setting Volcano Telephone’s A-Fund subsidy and future rates. The PUC also required Volcano Telephone to submit broadband service quality metrics related to Volcano Vision’s services.The PUC issued Decision No. 23-02-008, calculating Volcano Telephone’s A-Fund subsidy and approving rates for 2023. Volcano Telephone and Volcano Vision challenged this decision, arguing that the PUC’s implementation of broadband imputation constituted an unconstitutional taking and conflicted with federal law. They also contended that the order to submit broadband service quality metrics was outside the scope of the proceedings and the PUC’s jurisdiction. The PUC denied rehearing and modified the decision to clarify the reporting requirements.The California Court of Appeal, Third Appellate District, reviewed the case. The court rejected the petitioners’ claims, affirming Decision Nos. 23-02-008 and 23-08-051. The court held that the PUC’s implementation of broadband imputation did not constitute an unconstitutional taking, as the A-Fund program is voluntary, and the petitioners failed to demonstrate that the rate of return was confiscatory. The court also found that the order to submit broadband service quality metrics was within the scope of the proceedings and the PUC’s jurisdiction. The court concluded that the PUC’s decisions were supported by substantial evidence and did not violate any constitutional rights. View "Volcano Telephone Co. v. Public Utilities Commission" on Justia Law

Plaintiffs, LSP Transmission Holdings II, LLC, and affiliates, sought to build and operate interstate electricity transmission lines in Indiana. An Indiana statute granted incumbent electric companies the right of first refusal to build and operate new interstate transmission facilities connecting to their existing facilities. Plaintiffs argued that this statute violated the dormant commerce clause of the U.S. Constitution. The district court issued a preliminary injunction preventing the Indiana Utility Regulatory Commission (IURC) Commissioners from enforcing the statute.The IURC Commissioners and several intervening defendants appealed the injunction. They argued that the IURC did not enforce the rights of first refusal and that the injunction would not redress plaintiffs' injuries. The district court had found that plaintiffs had standing because it believed the IURC enforced the rights of first refusal and that an injunction would prevent MISO from recognizing the statute.The United States Court of Appeals for the Seventh Circuit vacated the preliminary injunction, finding that plaintiffs lacked standing. The court concluded that the IURC had no relevant responsibilities for enforcing the challenged statute and that any genuine redress would have to operate against MISO, a non-governmental entity not party to the lawsuit. The court noted that MISO had made clear it would not respond to the preliminary injunction as plaintiffs and the district court expected. The court also rejected a dissenting opinion's novel theory of standing, which was not presented by plaintiffs or adopted by the district court. The case was remanded to the district court for further proceedings. View "LSP Transmission Holdings II, LLC v Commonwealth Edison Company of Indiana, Inc." on Justia Law

In the spring of 2018, People's Electric Cooperative and Oklahoma Gas and Electric Company (OG&E) submitted competing bids to provide retail electric service to the Tall Oak Woodford Cryo Plant in Coal County, Oklahoma. The Plant is located in People's certified territory, which grants them exclusive rights to provide electricity under the Retail Electric Supplier Certified Territory Act (RESCTA). OG&E's proposal relied on the Large Load exception to RESCTA, which allows a supplier to extend its service into another supplier's territory for large-load customers. OG&E used third-party transmission facilities to provide service to the Plant without extending its own distribution lines.The Oklahoma Corporation Commission enjoined OG&E from serving the Plant, finding that OG&E was not "extending its service" as authorized by RESCTA. The Commission determined that a retail electric supplier may not use third-party transmission lines to extend its service into another supplier's certified territory under the Large Load exception. OG&E appealed the decision.The Supreme Court of the State of Oklahoma reviewed the case and upheld the Commission's determination. The Court held that Article 9, Section 20 of the Oklahoma Constitution requires a limited review of the Commission's order. The Court affirmed the Commission's interpretation that the Large Load exception does not permit a supplier to use third-party transmission lines to extend its service into another supplier's certified territory. The Court's decision applies prospectively only and does not affect existing retail electric services and facilities established under the Large Load exception. View "OKLAHOMA GAS AND ELECTRIC CO. v. STATE" on Justia Law