Justia Utilities Law Opinion Summaries

A company sought approval to construct electricity transmission lines in Pennsylvania as part of a larger project selected through a federally supervised regional planning process. The project was designed to alleviate regional congestion on the electricity grid, which would lower wholesale electricity costs in certain states but increase costs for some Pennsylvania consumers. The regional transmission organization (PJM), acting under Federal Energy Regulatory Commission (FERC) rules, selected the project using a benefit-cost methodology approved by FERC.The Pennsylvania Public Utility Commission (PUC) reviewed the company’s applications for siting and eminent domain authority. After an evidentiary hearing, an administrative law judge recommended denial, finding that the project was no longer needed due to decreased congestion and that the benefit-cost analysis used by PJM was deficient under Pennsylvania law. The PUC adopted this recommendation, denied the applications, and rescinded the company’s provisional certificate of public convenience. The company appealed to the Pennsylvania Commonwealth Court, which affirmed the PUC’s decision. The company then pursued federal constitutional claims in the United States District Court for the Middle District of Pennsylvania, reserving those issues in state court.The United States Court of Appeals for the Third Circuit reviewed the case. It held that the PUC’s order was preempted under the Supremacy Clause of the U.S. Constitution because it posed an obstacle to federal objectives established by Congress and implemented by FERC—specifically, the regional planning and congestion-reduction process. The court found that the PUC’s independent “need” determination, which second-guessed PJM’s FERC-approved methodology, impermissibly conflicted with federal law. The Third Circuit affirmed the District Court’s judgment for the company and did not reach the dormant Commerce Clause issues. View "Transource Pennsylvania LLC v. DeFrank" on Justia Law

Transco, which operates the 10,000-mile-long Transcontinental Pipeline from South Texas to New York City, sought a certificate of public convenience and necessity for the Leidy Southeast Expansion Project, including construction of four new pipeline “loops” and the upgrade of turbines at four compressor stations. The Skillman Loop and the Pleasant Run Loop, totaling 13.23 miles, would be located in New Jersey; the Franklin Loop and Dorrance Loop, totaling 16.74 miles, would be located in Pennsylvania. The Federal Energy Regulatory Commission (FERC) completed the requisite Environmental Assessment and issued the certificate in December 2014, conditioned on Transco’s receipt of “all applicable authorizations under federal law” enumerated in the Environmental Assessment, including from New Jersey and Pennsylvania. Pursuant to the Clean Water Act, the Pennsylvania and New Jersey Departments of Environmental Protection (PADEP, NJDEP) reviewed Transco’s proposal for potential water quality impacts and issued. In consolidated appeals, the Third Circuit upheld the approvals. NJDEP and PADEP did not act arbitrarily or capriciously in issuing the permits. View "New Jersey Conservation Foundation v. New Jersey Department of Environmental Protection" on Justia Law