Justia Utilities Law Opinion Summaries

Intervenor, Sunflower Electric Power Corporation, appealed the grant of summary judgment to the Sierra Club based on violations of the National Environmental Policy Act (NEPA), 42 U.S.C. 4321 et seq., by the USDA's Rural Utilities Services. The district court ruled that the Service unlawfully failed to prepare an environmental impact statement (EIS) before granting approvals and financial assistance to Sunflower's expansion of its coal-fired power plant, and remanded the matter to the Service, enjoining it from granting further approvals until it completed an EIS. The court dismissed the appeal for lack of jurisdiction under 28 U.S.C. 1291 because Sunflower appealed a non-final remand order that was not immediately appealable by a private party and under section 1292(a)(1) because the injunction served no purpose beyond the remand. View "Sierra Club v. U.S. Dept. of Agriculture, et al" on Justia Law

In this appeal, Appalachian Power Company (APCO) sought rate adjustment clause recovery of $33.3 million in environmental compliance costs that the State Corporation Commission denied. The Supreme Court reversed in part, affirmed in part, and remanded, holding (1) APCO was entitled to a rate adjustment clause for recovery of actual costs it directly incurred for environmental compliance in 2009 and 2010 but did not recover through its base rates, and the portion of the Commission's decision denying recovery of environmental compliance costs on the basis that those costs were connected with projects included in APCO's base rates which APCO had the opportunity to recover was reversed; and (2) the portion of the Commission's decision denying APCO recovery of environmental compliance costs alleged to be embedded in the capacity equalization charges APCO paid to its affiliates in 2009 and 2010 was affirmed. Remanded. View "Appalachian Power Co. v. State Corp. Comm'n" on Justia Law

These consolidated appeals arose from a final determination of the State Corporation Commission in a mandated biennial review of the rates, terms, and conditions for the provision of generation, distribution and transmission services of an electric utility. As pertinent here, commencing in 2011, the Virginia Electric Utility Regulation Act required the Commission to conduct biennial reviews of an electric utility's performance during the two successive twelve-month periods immediately prior to such reviews pursuant to Va. Code Ann. 56-585.1(A). At issue in this appeal was whether in the 2011 biennial review of the performance of Virginia Electric and Power Company in the 2009-2010 test period the Commission erred in determining that the utility's authorized fair rate of return on common equity of 10.9 percent would apply to the entire 2011-2012 test period in the next biennial review in 2013. The Supreme Court affirmed, holding that the Commission's construction of Code 56-585.1 was based upon the proper application of legal principles, and the Commission did not abuse the discretion afforded to it under that statute. View "Va. Elec. & Power Co. v. State Corp. Comm'n" on Justia Law

Petitioners, the Public Service Commission of West Virginia and the Wetzel County Solid Waste Authority, sought to compel Respondents, Lackawanna Transport Company and Solid Waste Services, Inc., to comply with an order entered by the Public Service Commission requiring them to produce certain information and financial records pertinent to an ongoing investigation concerning the Wetzel County Landfill. The Supreme Court granted the requested writ of mandamus, holding (1) a writ of mandamus is appropriate in this case, as Respondents were legally required to produce the requested information; and (2) while arguably there was another remedy available in this instance through the circuit court, that remedy was not adequate given the unique circumstances given here.View "State ex rel. Pub. Serv. Comm'n v. Lackawann Transp. Co." on Justia Law

These consolidated petitions for review challenged a contract between the BPA and one of its long-time customers, Alcoa. BPA's preference customers and others filed this petition for review, requesting that the court hold that the contract was unlawful because it was inconsistent with the agency's statutory mandate to act in accordance with sound business principles. Petitioners claimed, among other things, that instead of entering into a contract to sell power to Alcoa at the statutorily required Industrial Firm power (IP) rate, BPA should sell to other buyers at the market rate. The court denied the petitions for review insofar as they pertained to the Initial Period. Because the potential for BPA and Alcoa to enter into the Second Period of the contract was no longer before the court, the court dismissed those portions of the petitions. Finally, the court held that because BPA relied on a categorical exclusion to the National Environmental Policy Act's (NEPA), 42 U.S.C. 4321-4347, requirements, declining to complete an Environmental Impact Statement was not arbitrary and capricious. Accordingly, the court denied petitioner's NEPA claim.View "Alcoa Inc. v. BPA, et al" on Justia Law

In 2008, the Florida Public Service Commission (PSC) granted the petitions for determination of need for new nuclear power plants proposed by Florida Power & Light company (FPL) and Progress Energy Florida (PEF). The PSC subsequently issued orders granting the utility companies' annual petitions for recovery of their associated preconstruction costs through customer rates. Southern Alliance for Clean Energy (SACE) opposed FPL and PEF's most recent cost recovery petitions, arguing that Fla. Stat. 366.93 unconstitutionally delegates legislative authority to the PSC and, alternatively, the PSC's order authorizing the utility companies to recover preconstruction costs was arbitrary and unsupported by competent, substantial evidence. The Supreme Court affirmed, holding that authorizing recovery of preconstruction costs through customer rates in order to promote utility company investment in new nuclear power plants, even though those plants might never be built, is a policy decision for the Legislature, not the Court. View "Alliance for Clean Energy v. Graham" on Justia Law

The manager of the Wyoming Universal Service Fund (WUSF) filed confidential reports with the Wyoming Public Service Commission (PSC) containing his recommendations for the WUSF assessment level for fiscal years 2009 and 2010. Upon notice from the PSC that public hearings would be held to consider the manager's reports, Qwest asked for contested case hearings. The PSC denied Qwest's requests, concluding that WUSF proceedings are legislative in nature. The PSC subsequently issued orders establishing the WUSF assessment levels as recommended by the manager. The Office of Consumer Advocate and Qwest filed petitions for review of the PSC order. The district court held that the PSC erred in denying Qwest's requests for contested case hearings, reversed the administrative orders, and ordered portions of the 2009 data to be provided to Qwest but denied the request for 2010 data. Four notices of appeal from the district court's order were filed. The Supreme Court affirmed, holding that Qwest was entitled to contested case hearings before the PSC. Remanded for contested case hearings. View "Pub. Serv. Comm'n of Wyo. v. Qwest Corp." on Justia Law

This dispute involved the rights of the County and the rights of a public utility, Laclede, in shared easements. On appeal, the County challenged the district court's grant of Laclede's motion for preliminary injunction. The order enjoined the County from, among other things, constructing any additional portion of retaining wall on top of gas lines on the Pitman easement; removing, or hiring another entity to remove any portion of the Pitman Hill Road gas lines located on the Pitman easement; and removing any portion of the gas lines from the Ehlmann Road easement. The court concluded that the district court had jurisdiction under the Pipeline Safety Act, 49 U.S.C. 60101-60137, a federal statute that specifically authorized the district court to enjoin threats to damaged pipelines. The issuance of a preliminary injunction in those circumstances was not error. Accordingly, the court affirmed the judgment. View "Laclede Gas Co. v. St. Charles County" on Justia Law

A fire destroyed a hydroponic tomato facility belonging to a new business, Sunnyland Farms, Inc. The day before the fire, Sunnyland's electricity had been shut off by its local utility, the Central New Mexico Electrical Cooperative (CNMEC), for nonpayment. Sunnyland's water pumps were powered by electricity, and without power, Sunnyland's facility had no water. Sunnyland sued CNMEC, alleging both that CNMEC had wrongfully suspended service, and if its electrical service had been in place, firefighters and Sunnyland employees would have been able to stop the fire from consuming the facility. After a bench trial, the court found CNMEC liable for negligence and breach of contract. The trial court awarded damages, including lost profits, of over $21 million in contract and tort, but reduced the tort damages by 80% for Sunnyland's comparative fault. It also awarded $100,000 in punitive damages. The parties cross-appealed to the Court of Appeals, which reversed the contract judgment, vacated the punitive damages, held that the lost profit damages were not supported by sufficient evidence, affirmed the trial court's offset of damages based on CNMEC's purchase of a subrogation lien, and affirmed the trial court's rulings on pre- and post-judgment interest. Sunnyland appealed. Upon review, the Supreme Court affirmed the Court of Appeals regarding the contract judgment, punitive damages, and interest, and reversed on the lost profit damages and the offset. The Court also took the opportunity of this case to re-examine the standard for consequential contract damages in New Mexico. View "Sunnyland Farms, Inc. v. Central N.M. Electric Cooperative, Inc." on Justia Law

Duke Energy Carolinas, LLC (Duke) filed an application with the North Carolina Utilities Commission (Commission) to increase its state retail electric service rates approximately 15.2 percent over current revenues. The application requested that rates be established using a return on equity (ROE) of 11.5 percent. The Commission approved a 10.5 percent ROE for Duke. The attorney general appealed the Commission's order, arguing that the order was legally deficient because it was not supported by competent, material, and substantial evidence and did not include sufficient conclusions and reasoning. The Supreme Court reversed, holding that the Commission failed to make the necessary findings of fact to support its ROE determination. Remanded to the Commission to enter sufficient findings of fact. View "State ex rel. Utils. Comm'n v. Attorney Gen." on Justia Law