Justia Utilities Law Opinion Summaries

In a case before the Supreme Court of the State of Montana, the Montana Environmental Information Center sued the Montana Department of Public Service Regulation, Public Service Commission, and Northwestern Corporation, also known as Northwestern Energy. The plaintiff contested Northwestern's failure to purchase energy from Community Renewable Energy Project (CREP) resources in 2015 and 2016. Northwestern, which is a public utility, had obtained waivers from the Commission for these obligations. The plaintiff claimed that Northwestern’s waivers were granted erroneously and sought penalties for Northwestern’s non-compliance.The District Court reversed the Commission's decision, concluding that Northwestern hadn't taken all reasonable steps to procure CREP resources for the years in question. The court also assessed a $2,519,800 penalty against Northwestern. On appeal, the Supreme Court of the State of Montana held that the District Court correctly reversed the Commission's waiver for 2015, but made an error in assessing the penalty. The Supreme Court affirmed the decision in part, vacated it in part, and remanded the case to the District Court for further proceedings. The court directed the District Court to remand the case to the Commission to assess the penalty against Northwestern for its non-compliance in 2015 and, if applicable, 2016. View "Montana Environmental Information Center v. Northwestern Energy" on Justia Law

The Supreme Court reversed the decision of the district court concluding that Plaintiffs - a climate advocacy group and three NorthWestern Energy ratepayers - had standing to challenge Mont. Code Ann. 69-8-421 as unconstitutional and then invalidating the statute, holding that Plaintiffs' challenge to the preapproval statute was not justiciable.At issue was section 69-8-421, which effectively permitted NorthWestern, but no other public utility, to apply to the Montana Public Service Commission for preapproval of an electricity supply resource. Plaintiffs filed a complaint requesting declaratory judgment that the preapproval statute violated both Mont. Const. art. II, 31 and Mont. Const. art. V, 12. NorthWestern filed a motion to dismiss for both lack of standing and ripeness. The district court denied the motion. The Supreme Court reversed, holding (1) Plaintiffs lacked standing to raise the rights of non-party utilities; and (2) Plaintiffs' alleged consumer injuries were not yet ripe for consideration. View "350 Montana v. State" on Justia Law

The Supreme Court affirmed in part and reversed I'm part the order of the district court granting summary judgment to the State and Department of Natural Resources and Conservation (State) regarding interpretation of a settlement agreement between the parties, holding that the district court erred by reaching the merits of a nonjusticiable issue.In this case stemming from settled litigation between the parties involving the State's rent claims against utility companies for use of riverbed acreage occupied by their hydroelectric projects. On appeal, defendant Avista Corporation argued that the district court erred in concluding that the agreement's provision governing a conditional reduction of rent would not provide a retroactive credit for past rent paid by Avista. The Supreme Court affirmed in part and reversed in part, holding (1) a portion of the district court's order must be reversed as being unripe and constituting an advisory opinion about speculative issues that may never arise; and (2) the district court properly declared that "Avista [was] required to continue to pay the annual full market rental rate as set forth in the Settlement, Consent Judgment, and Lease." View "State Dep't of Natural Resources & Conservation v. Avista Corp." on Justia Law

The Supreme Court affirmed the decision of the district court to affirm the Montana Department of Environmental Quality's (DEQ) issuance of a solid waste management system (SWMS) license to the City of Billings for future expansion of its Class II facility, the Billings Regional Landfill, holding that the DEQ did not violate the law.Specifically, the Supreme Court held (1) in approving the City's license application, the district court did not err when it concluded that DEQ made a "reasoned determination" that the City satisfied the requirements of Admin. R. M. 17.50.1005; (2) the district court did not err when it concluded that DEQ did not need to prepare an environmental impact statement pursuant to Admin. R. M. 17.4.608(1)(g); and (3) the district court did not err by not addressing whether the proposed expansion area violates Mont. Code Ann. 75-10-212(2)(c). View "Hillcrest Natural Area Foundation, Inc. v. Dep't of Environmental Quality" on Justia Law

The Supreme Court affirmed the judgment of the district court dismissing North Star Development, LLC's petition for judicial review of the Montana Public Service Commission's (PSC) August 2020 rate determination regarding North Star's 2019 application for water and sewer utility rate increase authorizations, holding there was no error.Specifically, the Supreme Court held (1) the district court correctly concluded that North Star failed to exhaust all available administrative remedies, as required by Mont. Code Ann. 2-4-702(1)(a); (2) the correct jurisdictional basis for dismissal of a petition for judicial review due to failure to exhaust administrative remedies is a lack of procedural justiciability rather than lack of subject matter jurisdiction; and (3) the district court did not commit reversible error by failing to consider North Star's asserted waiver and equitable estoppel defenses. View "North Star Development, LLC v. Montana Public Service Commission" on Justia Law

The Supreme Court affirmed the order entered by the district court granting Big Foot Dumpsters & Containers, LLC's motion to dismiss this action as moot following Big Foot's withdrawal of its application for a garbage hauling certificate from the Montana Public Service Commission (PSC), holding that there was no error.Big Foot filed an application for a Class D carrier certificate of public convenience or necessity to haul garbage in Flathead County. Ultimately, Big Foot requested an order allowing the withdrawal of its application and sought dismissal of the action. The district court granted dismissal. The Supreme Court affirmed, holding (1) the district court did not err by concluding that the case was mooted; and (2) the district court did not err by failing to apply any exception to the mootness doctrine. View "In re Class D Application of Big Foot" on Justia Law

The Supreme Court affirmed the judgment of the district court dismissing Yellowstone Disposal, LLC's petition for writ of mandamus, holding that the district court did not err.Yellowstone Disposal filed a petition for writ of mandamus to compel the Montana Department of Environmental Quality (DEQ) to issue a license or, in the alternative, issue a final decision approving or denying its application for a class II solid waste management systems (SWMS) license to operate a SWMS in Richland County. The district court granted DEQ's motion to dismiss the petition for failure to state a claim. The Supreme Court affirmed, holding that Yellowstone Disposal did not satisfy the requirements for issuance of a writ of mandamus. View "Yellowstone Disposal, LLC v. State, Department of Environmental Quality" on Justia Law

The Supreme Court affirmed the judgment of the district court concluding that the Montana Public Service Commission (PSC) arbitrarily and unlawfully reduced solar qualifying facility (QF) standard-offer rates by excluding carbon dioxide emissions costs and NorthWestern Energy's avoided costs of operating its internal combustion engine resource units from the avoided-cost rate, holding that the district court did not err.Specifically, the Supreme Court held that the district court did not err in determining that the PSC did not comply with the Public Utility Regulatory Policies Act (PURPA) and Montana's mini-PURPA when it set the standard-offer contract rates and maximum contract lengths for qualifying small (QF-1) solar power producers. The PSC's decision to reduce the standard-offer QF-1 rates was arbitrary and unreasonable because the PSC failed to consider future carbon costs and failed to provide a reasoned decision in departing from its recent precedent. Further, the PSC unreasonably failed to consider NorthWestern's cost of operating its new internal combustion engine resources when setting the avoided-cost rate. View "Vote Solar v. Montana Department of Public Service Regulation" on Justia Law

The Supreme Court overruled the decision of the Public Service Commission (PSC) rejecting a proposed development of an eighty-megawatt solar energy facility near Billings, Montana, holding that the PSC violated the requirements of the federal Public Utility Regulatory Policies Act (PURPA) and state law precluding discrimination against solar energy projects.The district court reversed and remanded the PSC's order setting terms and conditions of MTSUN, LLC's proposed eighty megawatt solar project based on findings of violations of due process, PURPA, and Montana's mini-PURPA. The Supreme Court affirmed, holding that the district court (1) did not err in concluding that the PSC's determinations were arbitrary and unlawful; and (2) relied on record evidence in determining the existence of a legally-enforceable agreement and the avoided-cost rates. View "MTSUN, LLC v. Montana Department of Public Service Regulation" on Justia Law

The Supreme Court affirmed the order of the district court vacating and modifying the orders of the Montana Public Service Commission (PSC) reducing standard-offer contract rates and maximum contract lengths for small solar qualifying facilities (QFs), holding that the district court did not err.Specifically, the Supreme Court held (1) the district court did not err in determining that the PSC's calculation of the avoided-cost rate was arbitrary and unlawful; and (2) the district court did not err in concluding that the PSC arbitrarily and unreasonably calculated QF capacity contribution values and arbitrarily and unreasonably reduced maximum-length QF-1 contracts to fifteen years. View "Vote Solar v. Montana Department of Public Service Regulation" on Justia Law