Justia Utilities Law Opinion Summaries

Daufuskie Island Utility Company, Inc. (DIUC) filed an application with the Public Service Commission for a rate increase for the water and sewer service it provides to residents of Daufuskie Island in Beaufort County. During a hearing on the merits of the application, the commission approved a purported settlement agreement between the Office of Regulatory Staff (ORS) and three property owners' associations: Haig Point Club and Community Association Inc., Melrose Property Owner's Association, Inc., and Bloody Point Property Owner's Association. DIUC appealed, and the South Carolina Supreme Court reversed, finding the agreement "was not a true settlement" because DIUC did not agree to it. The case was thereafter remanded the case to the commission for a new hearing on all issues. On remand, the commission held a second hearing on the merits and issued a second order. DIUC appealed the second order, arguing the commission erred in disallowing certain rate case expenses and refusing to include items of capital in DIUC's rate base. DIUC argued ORS and the commission applied a higher standard of scrutiny on remand in retaliation against DIUC for successfully seeking reversal of the commission's initial order. At oral argument on this second appeal, when pressed by the Court to respond to DIUC's "retaliation" argument, appellate counsel for ORS conceded a heightened standard had been employed. In reversing the Commission, the Supreme Court determined the arbitrary, higher standard of scrutiny affected substantial rights of DIUC. The commission's findings of fact and conclusions of law therefore had to be reversed. The matter was remanded again for a new hearing. View "Daufuskie Island v. SC Office of Regulatory Staff" on Justia Law

Petitioners, three rural telephone companies, challenged the Commissions' decision establishing petitioners' "cost of capital," which reflects a company's cost of generating or obtaining capital investment in assets that provide utility services to customers. Petitioners alleged that the Commission failed to adequately consider certain risks that exist for investing in small, rural telephone companies, and therefore the cost of capital was set at an unreasonably low level, resulting in a confiscatory rate of return.The Court of Appeal affirmed the trial court's judgment, holding that petitioners failed to meet their burden of demonstrating that the Commission's cost of capital determination was arbitrary, capricious, lacking in any evidentiary support, or that it otherwise fell short of constitutional standards regarding a reasonable rate of return. View "Ponderosa Telephone Co. v. California Public Utilities Commission" on Justia Law

The Supreme Court affirmed the order of the Indiana Utility Regulatory Commission approving two complex, multi-year settlements regarding rates and infrastructure investments under the TDSIC Statute, Ind. Code ch. 8-1-39, holding that Appellant, a party to and proponent of the settlement agreements, was estopped from raising this challenge and that the Commission's order contained sufficient findings.The agreements in this case specified how, in the utility's period petitions to the Commission, rate increases should be calculated and allocated among the utility's various rate classes. Despite being a party to the underlying agreements, Appellant, a group of some of the utility's largest industrial customers, opposed the utility's second periodic petition. Specifically, Appellant argued that the utility's rate calculation and allocation based on the underlying agreements was contrary to the TDSIC Statute. The Commission largely approved the utility's petition. The Supreme Court affirmed, holding (1) Appellant was estopped from challenging the terms of the settlement; and (2) the Commission's conclusion was reasonable and properly supported by specific findings. View "NIPSCO Industrial Group v. Northern Indiana Public Service Co." on Justia Law

In this case requiring the correct interpretation of the garbage lien statute, Nev. Rev. Stat. 444.520, and the procedures required to perfect and foreclose on a garbage lien the Supreme Court held that the reference to the mechanics' lien statute in Nev. Rev. Stat. 444.520(3) incorporates only the mechanics' lien statute's procedural requirements for foreclosure, as set forth in Nev. Rev. Stat. 108.226 and that no limitations period applies to the foreclosure of a garbage lien.The district court concluded that Appellant, a municipal waste company, did not properly record a garbage lien because it failed to record it within ninety days of the completion of the work. Alternatively, the district court held that Appellant could not foreclose on its liens because a two-year limitations period applied. The Supreme Court reversed, holding (1) the court erred in applying both the lien perfection requirements set forth in section 108.226 and the two-year statute of limitations set forth in Neb. Rev. Stat. 11.190(4)(b) to the foreclosure of those liens under section 444.520; and (2) a garbage lien is not subject to the statute of limitations, and therefore, Appellant may foreclose upon such a lien at any time so long as it properly perfects the lien under section 444.520(4). View "Waste Management of Nevada, Inc. v. West Taylor Street, LLC" on Justia Law

After years of investigation, the San Diego Regional Water Quality Control Board (Regional Board), issued a cleanup and abatement order (CAO) to San Diego Gas & Electric Company (SDG&E) and several other entities, in connection with a power plant’s operations that discharged waste into the San Diego Bay. The Regional Board found that SDG&E caused or permitted waste to be discharged into the Bay and thereby created, or threatened to create, pollution and nuisance conditions. SDG&E contested its designation as a responsible "person" under Water Code section 13304 (a), and petitioned for a writ of mandate to have the CAO vacated. The superior court denied the writ. SDG&E argued then, as it did before the Court of Appeal, that shipyard companies comparatively discharged greater amounts of pollutants into the Bay and that two appellate opinions required application of the "substantial factor" causation test to determine whether SDG&E created or threatened to create a condition of pollution or nuisance. The Court of Appeal found it was undisputed that SDG&E directly discharged and thus "caused or permitted" waste to enter the Bay, distinguishing the aforementioned appellate cases. Further, the Regional Board adequately demonstrated that the waste discharged by SDG&E created, or threatened to create, a condition of pollution or nuisance. Accordingly, the Court affirmed the judgment. View "San Diego Gas & Electric Co. v. San Diego Regional Water etc." on Justia Law

Uber is a “transportation networking company” (TNC) regulated by the California Public Utility Commission (CPUC). All TNCs must submit annual reports to the CPUC, containing specified data, and file an annual accessibility plan. After receiving numerous complaints from the San Francisco Municipal Transportation Agency regarding illegal parking, traffic congestion, and safety hazards caused by TNC vehicles, the city attorney opened an investigation into possible violations of state and municipal law by TNCs, including Uber. The city attorney issued the administrative subpoenas to Uber, including a request for: Annual Reports filed by Uber with CPUC, 2013-2017 and all of the raw data supporting those reports on providing accessible vehicles, driver violations/suspensions, number of drivers completing training courses, updates on accessibility plans, report on hours/miles logged by drivers, and providing service by zip code. Uber refused to comply, arguing that the CPUC had primary jurisdiction. The court of appeal affirmed a trial court order that Uber produce the reports. It was within the city attorney’s investigative powers to issue the administrative subpoenas. Public Utilities Code section 1759 did not deprive the trial court of jurisdiction and the primary jurisdiction doctrine did not apply to postpone enforcement of the administrative subpoenas. View "City and County of San Francisco v. Uber Technologies, Inc." on Justia Law

Plaintiffs, members of three rural power cooperatives, filed suit alleging that the cooperatives failed to refund excess "patronage capital" to their members as required by state law. In this case, the cooperatives argued that Mississippi Code 77-5-235(5)'s refund requirement conflicts with Congress's purposes and objectives as expressed in the Rural Electrification Act, federal regulations, and the cooperatives' loan agreements with the Rural Utility Service. Furthermore, they argued that plaintiff's for request appointment of a trustee or receiver conflicts with federal interests and the provision in their loan agreements that appointment of a receiver constitutes an event of default. The Fifth Circuit reversed the district court's decision to remand these consolidated cases to state court, holding that the cooperatives have a colorable federal preemption defense and were entitled to remove under 28 U.S.C. 1442's provision for federal officer removal. View "Butler v. Coast Electric Power Assoc." on Justia Law

The issues this case presented for the Pennsylvania Supreme Court’s review centered on: (1) whether the penalty imposed against HIKO Energy, LLC (HIKO) was so grossly disproportionate as to violate the Excessive Fines Clause of the Pennsylvania and U.S. Constitutions; (2) whether the penalty impermissibly punished HIKO for litigating; and (3) whether the Pennsylvania Utility Commission (PUC) abused its discretion in imposing a penalty which was not supported by substantial evidence. The Supreme Court concluded HIKO waived its constitutional challenge to the civil penalty in this case, the penalty was not imposed as a punishment against HIKO for opting to litigate its case, and that the PUC’s conclusions in support of imposing the penalty were supported by substantial evidence. View "HIKO Energy, Aplt. v. PA PUC" on Justia Law

In 2013, a small business jet crashed into a Georgia Power Company transmission pole on Milliken & Company’s property near the Thomson-McDuffie Regional Airport in Thomson, Georgia. The two pilots were injured and the five passengers died. In the wake of the crash, the pilots and the families of the deceased passengers filed a total of seven lawsuits against multiple defendants, including Georgia Power and Milliken. The complaints in those seven suits alleged that a transmission pole located on Milliken’s property was negligently erected and maintained within the airport’s protected airspace. The record evidence showed Georgia Power constructed the transmission pole on Milliken’s property for the purpose of providing electricity to Milliken’s manufacturing-plant expansion, and that the pole was constructed pursuant to a 1989 Easement between Georgia Power and Milliken. In each of the seven suits, Milliken filed identical cross-claims against Georgia Power, alleging that Georgia Power was contractually obligated to indemnify Milliken “for all sums that Plaintiffs may recover from Milliken” under Paragraph 12 of the Easement. Georgia Power moved for summary judgment on the crossclaims, which were granted. The trial court reasoned Paragraph 12 of the Easement operated as a covenant not to sue, rather than as an indemnity agreement, because it “nowhere contains the word ‘indemnity’” and “it is not so comprehensive regarding protection from liability.” The Court of Appeals affirmed summary judgment to six cases. Rather than adopt the trial court’s reasoning, the appellate court held that the provision was an indemnity agreement and affirmed the trial court by applying Georgia’s anti-indemnity statute, OCGA 13-8-2 (b), to determine that Paragraph 12 of the Easement was “void as against public policy,” a theory argued before the trial court but argued or briefed before the Court of Appeals. The Georgia Supreme Court determined the Court of Appeals erred in its construction and application of OCGA 13-8-2(b), vacated the judgment and remanded for the lower court to consider whether, in the first instance, the trial court’s rationale for granting Georgia Power’s motions for summary judgment and any other arguments properly before the Court of Appeals. View "Milliken & Co. v. Georgia Power Co." on Justia Law

The Supreme Court reversed in part the judgment of the court of appeals reversing the judgment of the district court affirming the conclusions of the Public Utilities Commission (PUC) that CPS Energy violated both Tex. Util. Code 54.204(c)'s uniform-charge requirement and section 54.204(b)'s prohibition of discrimination, holding that the PUC could reasonably have concluded, as it did, that CPS Energy violated the plain terms of section 54.204(b).The PUC concluded that a utility that invoices different telecommunications providers a uniform rate nevertheless violates section 54.204(b) if it fails to take timely action to ensure that all pole attachers actually pay the uniform rate it invoices. The court of appeals reversed, holding that if a telecommunications provider does not pay the rate the utility uniformly charges, any discriminatory effect is the telecommunication provider's fault, not the utility's. The Supreme Court reversed, holding that the PUC's finding that CPS Energy failed to make any serious or meaningful effort to collect from AT&T Texas was supported by substantial evidence, and the effect on Time Warner Cable was clearly discriminatory. View "Time Warner Cable Texas LLC v. CPS Energy" on Justia Law