Justia Utilities Law Opinion Summaries

The district court dismissed a suit alleging that a price plan adopted by Salt River Project Agricultural Improvement and Power District (SRP) unlawfully discriminated against customers with solar-energy systems and was designed to stifle competition in the electricity market.The Ninth Circuit affirmed in part, applying Arizona’s notice-of-claim statute, which provides that persons who have claims against a public entity, such as SRP, must file with the entity a claim containing a specific amount for which the claim can be settled.The district court erred in dismissing plaintiffs’ equal protection claim as barred by Arizona’s two-year statute of limitations. The claim did not accrue when SRP approved the price plan, but rather when plaintiffs received a bill under the new rate structure. The plaintiffs alleged a series of violations, each of which gave rise to a new claim and began a new limitations period.Monopolization and attempted monopolization claims under the Sherman Act were not barred by the filed-rate doctrine, which bars individuals from asserting civil antitrust challenges to an entity’s agency-approved rates. SRP was not entitled to state-action immunity because Arizona had not articulated a policy to displace competition.The Local Government Antitrust Act shielded SRP from federal antitrust damages because SRP is a special functioning governmental unit but the Act does not bar declaratory or injunctive relief. The district court erred in concluding that plaintiffs failed to adequately allege antitrust injury based on the court’s finding that the price plan actually encouraged competition in alternative energy investment. View "Ellis v. Salt River Project Agricultural Improvement and Power District" on Justia Law

The owners of New England electric generation facilities are paid through formula rates established by ISO New England’s (a regional transmission organization) open access transmission tariff. The owners challenged Federal Energy Regulatory Commission’s (FERC) orders approving Schedule 17, an amendment to the ISO tariff, establishing a new recovery mechanism for costs incurred by certain electric generation and transmission facilities to comply with mandatory reliability standards FERC had approved.FERC ruled that the owners could use Schedule 17 to recover only costs incurred after they filed and FERC approved a cost-based rate under the Federal Power Act (FPA), 16 U.S.C. 824d. FERC reasoned that recovery was limited to prospective costs, citing the filed rate doctrine, which forbids utilities from charging rates other than those properly filed with FERC, and its corollary, the rule against retroactive rate-making, which prohibits FERC from adjusting current rates to make up for a utility’s over- or under-collection in prior periods.The D.C. Circuit denied the petition for review. FERC’s application of the filed rate doctrine and the rule against retroactive rate-making to Schedule 17 was not arbitrary or capricious. Schedule 17 does not expressly permit recovery of mandatory reliability costs incurred prior to a facility’s individual FPA filing. View "Cogentrix Energy Power Management, LLC v. Federal Energy Regulatory Commission" on Justia Law

The San Francisco Public Utilities Commission owns a power supply system in the Hetch Hetchy Valley and transmission lines but does not own distribution lines and relies on PG&E’s distribution system. The Commission is both a customer and a competitor of PG&E. The Federal Energy Regulatory Commission (FERC) approved PG&E’s Tariff, which stated the generally applicable terms for “open-access” wholesale distribution service. In 2019, San Francisco filed a complaint under the Federal Power Act (FPA), 16 U.S.C. 824e, 825e, 825h, challenging PG&E’s refusal to offer secondary-voltage service in lieu of more burdensome primary-voltage service to certain San Francisco sites and provide service to delivery points that San Francisco maintains are eligible for service under the Tariff’s grandfathering provision. PG&E maintained that it had not given customers the right to dictate the level of service to be received and that any denials of secondary-voltage service were supported by “technical, safety, reliability, and operational reasons.”FERC denied San Francisco’s complaint, ruling that PG&E should retain discretion to determine what level of service is most appropriate for a customer because the provider “is ultimately responsible for the safety and reliability of its distribution system.” The D.C. Circuit vacated and remanded, citing FERC’s own precedent and noting a “troubling pattern of inattentiveness to potential anticompetitive effects of PG&E’s administration of its open-access Tariff.” View "City and County of San Francisco v. Federal Energy Regulatory Commission" on Justia Law

Duke generates electricity for Power, a “joint agency” of 32 North Carolina municipalities. Power pays Duke an Energy Charge that “reimburses Duke only for its fuel costs and variable operations and maintenance costs associated with producing the energy consumed by Power" and a Capacity Charge, designed to cover Duke’s fixed costs and provide a return on its infrastructure investments, calculated by determining its pro-rata share of the demand on Duke’s system during a one-hour “snapshot” of system usage taken during the peak hour on Duke’s system each month.Their agreement regulates activities Power may employ to modify its electricity use, including Demand-Side Management and Demand Response. Demand-Side Management involves end-users accepting an inducement to sign up for a program where Power can turn off and on their appliances around high-demand periods. Demand Response involves a supplier providing end-users information on the price of energy at a given time and those end users then modifying their consumption to avoid elevated prices.In 2019, Power petitioned the Federal Energy Regulatory Commission (FERC) arguing that the provisions that permit Demand-Side Management and Demand Response activities permit deploying battery storage technology to reduce metered demand during peak load periods and drawing from those batteries during the high-demand “snapshot” hour. Concerned that Power would reduce its Capacity Charge to zero, Duke opposed the petition. The D.C. Circuit affirmed FERC’s grant of Power’s petition, finding that the agreement permits Power to use battery storage technology as either Demand-Side Management or Demand Response. View "Duke Energy Progress, LLC v. Federal Energy Regulatory Commission" on Justia Law

Following severe cold weather in January 2014, Old Dominion, a nonprofit electric utility that serves customers in Virginia, Maryland, and Delaware, unsuccessfully sought to recover certain electricity generation costs from PJM, a “regional transmission organization” that operates the electrical grid in a defined geographic area, in an administrative proceeding before the Federal Energy Regulatory Commission (FERC). Old Dominion filed suit in Virginia state court, pursuing four putative state law claims, seeking the same relief unsuccessfully claimed before FERC. PJM removed the case, arguing that the complaint contests electricity transmission rates set forth in PJM’s federally filed tariff and that the district court was vested with federal question jurisdiction under 28 U.S.C. 1331.The district court denied Old Dominion’s remand motion and dismissed each of its claims with prejudice, as effectively challenging the terms of PJM’s federal tariff. The court concluded that the “filed-rate doctrine” barred it from awarding damages on Old Dominion’s claims. The Fourth Circuit affirmed. Old Dominion’s claims necessarily present a substantial question of federal law by seeking relief precluded by the PJM Tariff, asking a state court to fix a reasonable tariffed rate applicable only to the utility’s 2014 losses, and effectively challenging the terms and enforceability of the Tariff’s rate cap. The district court correctly dismissed those claims. View "Old Dominion Electric Cooperative v. PJM Interconnection, LLC" on Justia Law

The Supreme Court affirmed the judgment of the trial court dismissing Plaintiff's administrative appeal from the decision of the Connecticut Siting Council approving the application of NTE Connecticut, LLC (NTE) seeking a certificate of environmental compatibility and public need for the construction of an electric generating facility in the town of Killingly, holding that there was no error.Plaintiff, a nonprofit organization, appealed the council's decision to the trial court, arguing that the council improperly refused to consider the environmental impact of installing a gas pipeline to its proposed facility when weighing the public benefit of the facility against its probable environmental impact. The trial court dismissed the appeal, concluding that the council was not required to consider the impact of the gas pipeline. The Supreme Court affirmed, holding that the trial court correctly determined that the council’s refusal to consider the potential environmental impact of the gas pipeline during the proceedings on NTE’s application for a certificate was not arbitrary or capricious. View "Not Another Power Plant v. Connecticut Siting Council" on Justia Law

In the first action ("the 2014 action"), The Gardens at Glenlakes Property Owners Association, Inc., Lake View Villas Association, Inc., Lake View Estates Property Owners Association, Inc., Glenlakes Unit One Property Owners Association, Inc., and Glenlakes Master Association, Inc. ("the Associations"), sued Baldwin County Sewer Service, LLC ("BCSS"), challenging a sewer-service rate increase. In the second action ("the 2017 action"), Dan Gormley, Mike Willis, Janet Maxwell, Larry Morgan, David Vosloh, and Dick Dayton ("the individual plaintiffs") sued BCSS, challenging the same rate increase. The trial court ultimately consolidated the actions in 2020, and it entered an order determining that the Associations and the individual plaintiffs were the real parties in interest in the actions. BCSS appealed that order. The Alabama Supreme Court concluded the order was nonfinal, and could not support an appeal. View "Baldwin County Sewer Service, LLC v. Gardens at Glenlakes Property Owners Association, Inc., et al." on Justia Law

Under the Johnson Act, federal courts lack jurisdiction over all suits affecting state-approved utility rates. The Ninth Circuit affirmed the district court's dismissal based on lack of subject matter jurisdiction of an action brought by public utility ratepayers challenging California Assembly Bill 1054, which addresses the financial burdens that wildfires impose on electrical utilities. The panel concluded that plaintiffs' claims challenge ratemaking within the meaning of the Johnson Act, as this circuit's precedent has interpreted it. The court also concluded that the CPUC satisfied the Johnson Act's procedural requirements. Accordingly, the Johnson Act applies to this case and the panel lacked subject matter jurisdiction. View "Cannara v. Nemeth" on Justia Law

The DC Circuit granted a petition for review of two FERC orders that raised petitioners' electricity rates. The FERC orders validated accounting by Potomac-Appalachian Transmission Highline, LLC (PATH) under its formula rate, allowing it to pass through to ratepayers more than $6 million PATH spent for public relations and advocacy activities. The activities related to PATH's pursuit of Certificates of Public Convenience and Necessity (Certificates) to build its proposed electric power transmission line. Petitioners argue that the expenditures instead belong in a designated account which would exclude them from the formula rate. The court concluded that "Expenditures for Certain Civic, Political and Related Activities" include expenditures made for the purpose of indirect as well as direct influence. Accordingly, the court rejected PATH's assertion that account includes expenditures made for the purpose of directly influencing the decisions of public officials, but not the disputed expenditures, which were for indirect influence. View "Newman v. Federal Energy Regulatory Commission" on Justia Law

The Supreme Court affirmed the judgment of the court of appeal concluding that a municipality does not violate Ohio Const. art. XVIII, 6 by selling a surplus of electricity to customers outside the municipality's boundaries, holding that the court of appeals did not err.The City of Cleveland sold outside its boundaries approximately four percent of the electricity it sold inside its boundaries. Cleveland Electric Illuminating Company (CEI) brought this complaint arguing that the electricity the City sold extraterritorially as surplus violated this Court's decision in Toledo Edison Co. v. Bryan, 737 N.E.2d 529 (2000) and the Ohio Constitution. The trial court granted summary judgment for the City. The court of appeals reversed, determining (1) Article XVIII, Section 6 does not require a municipality to buy the precise amount of electricity required by its inhabitants at any given time, and (2) questions of material fact existed as to whether the City obtained surplus electricity for the sole purpose of selling it to a neighboring city. The Supreme Court affirmed, holding that while a municipality may not acquire excess capacity for the sole purpose of reselling it outside the municipality's territorial boundaries, the municipality is not required to purchase the exact amount of electricity necessary to satisfy the current needs of its territorial customers. View "Cleveland Electric Illuminating Co. v. Cleveland" on Justia Law