Justia Utilities Law Opinion Summaries

A company that supplies propane purchased a majority interest in another company’s pipeline and storage facilities in Iowa, believing all necessary permits were in place. However, it was later discovered that the company had operated for nearly twenty-one years without obtaining state permits required under Iowa law, though it complied with all federal safety permits. The confusion stemmed from earlier permits issued under a regulatory scheme that was later preempted by federal law and replaced by a new state permitting system. The company did not realize new permits were required after the changes in the statutory framework.After the Iowa Utilities Commission discovered the lack of permits, it ordered the company to show cause and eventually imposed a $1.8 million civil penalty. This amount was based on the Commission’s calculation that each of nine permits previously needed for different segments of the pipeline and storage facilities constituted a separate “related series of violations,” each warranting the statutory maximum penalty of $200,000. The company contested this, arguing that the statutory cap should apply to the entire set of violations collectively.The Iowa District Court for Polk County affirmed the Commission’s penalty, and the Iowa Court of Appeals also affirmed, finding that each missing permit was a distinct “related series” under the statute. The company sought further review.The Supreme Court of Iowa reversed the lower courts, holding that the statutory maximum civil penalty under Iowa Code section 479B.21(1) is $200,000 for any related series of violations, and that all violations arising from the company’s failure to obtain permits after acquiring the pipeline and facilities were a single related series. The Court vacated the court of appeals’ decision, reversed the district court’s judgment, and remanded for further proceedings consistent with its interpretation. View "Enterprise Products Operating, LLC v. Iowa Utilities Commission" on Justia Law

A qualified nonresident transmission company challenged an Iowa statute that granted incumbent utilities a right of first refusal (ROFR) for electric transmission projects, arguing it was unconstitutionally enacted. The statute prevented the company from competing for projects. The Iowa District Court for Polk County declared the statute unconstitutional under the Iowa Constitution's title and single-subject requirements and issued a permanent injunction against the statute's enforcement.The district court's decision was appealed by the State of Iowa, the Iowa Utilities Board (IUB), and two incumbent utilities, MidAmerican Energy Company and ITC Midwest, LLC. They argued that the district court could not retroactively enjoin their participation in projects awarded under the ROFR while the case was pending. They also contended that the district court lacked jurisdiction and that the nonresident company should have challenged the IUB's rule under Iowa Code chapter 17A.The Iowa Supreme Court reviewed the case and affirmed the district court's judgment and permanent injunction. The court held that the ROFR statute was void ab initio due to its unconstitutional enactment. The court determined that the district court had the authority to enjoin the parties from participating in projects awarded under the ROFR, as the incumbents were on notice of the constitutional challenge and no physical construction had begun on the projects. The court also rejected the argument that the IUB's rule could only be challenged under chapter 17A, as the constitutional challenge to the statute inherently invalidated the rule. The court deferred any remaining federal law issues to the Federal Energy Regulatory Commission (FERC). View "LS Power Midcontinent, LLC v. State" on Justia Law

The Supreme Court affirmed the judgment of the district court affirming the decision of the Iowa Utilities Board (IUB) to grant MidAmerican Energy Company's petition for a franchise to build electric transmission lines in Madison County, some of which would run through a road right-of-way encumbering Appellant's land, holding that MidAmerican satisfied the statutory requirements for a franchise.Specifically, the Supreme Court held (1) MidAmerican satisfied the statutory requirement that new electric transmission lines must be necessary for a public use; (2) Iowa Code 306.46(1) provides utilities like MidAmerican with statutory authority to construct, operate, repair, or maintain their utility facilities with a public road right-of-way, including that right-of-way at issue in this case; and (3) as to the question of whether the construction of electric transmission lines within Appellant's right-of-way could result in a constitutional taking requiring compensation, this Court is evenly divided. View "Juckette v. Iowa Utilities Bd." on Justia Law

The Supreme Court reversed the judgment of the district court denying Appellant's petition for judicial review of an order of the Iowa Utilities Board approving a regulated public utility's emissions plan and budget, holding that the Board erred in failing to consider certain intervenors' evidence in determining whether the "Emissions Plan and Budget" (EPB) met the statutory requirements.The utility submitted an EPB - its initial plan and budget and subsequent updates - requesting approval for operations and maintenance expenditures associated with emissions controls previously approved at four coal-fueled power plants. The Board granted several motions to intervene in the contested case proceeding, including three environmental parties. Prior to the contested case hearing, the Board approved the utility's EPB. The environmental parties petitioned for judicial review, and the district court affirmed. The Supreme Court reversed, holding that the Board erred in rejecting the evidence brought by the intervening parties that the retirement of coal-fueled electric power generated facilities was more cost effective than the utility's plan and budget as outside the scope of Iowa Code 476.6 and thus not relevant. View "Environmental Law & Policy Center v. Iowa Utilities Bd." on Justia Law

The Supreme Court held that Iowa Code 357A.2 grants cities the primary right to provide water services within two miles of of the city limits that were not already being served by a rural water district.The Supreme Court answered in the affirmative three questions certified by the federal court in this dispute between an Iowa municipality and a rural water district over the right to provide water service to disputed areas within two miles of the city limits. Specifically, the Court held (1) before amendments in 2014, a section 357A.2 rural district did not have a legal right to provide water service to portions of an area described in its county board of supervisors resolution when those portions were also within two miles of the limits of a municipality and when the municipality had not waived its rights to provide water service to the area; (2) section 357.2(4), as amended in 2014, does not exempt a rural water district from following notice-of-intent procedures when the area the district seeks to serve is within the district's boundaries; and (3) a section 504A nonprofit corporation created in 1977 did not have a legal right to provide water service anywhere within the state. View "Xenia Rural Water District v. City of Johnston" on Justia Law