Justia Utilities Law Opinion Summaries

NextEra Energy Resources, LLC appealed the Iowa Utility Board's decision to grant advance ratemaking principles to MidAmerican Energy Company for a proposed wind generation facility. The district court affirmed the Board. The Supreme Court affirmed, holding (1) the Board properly interpreted and applied Iowa Code 476.53; (2) substantial evidence supported the Board's findings; (3) Iowa Code 476.43 was not applicable to this ratemaking proceeding; and (4) section 476.53 as applied to a rate-regulated public utility that may compete in the wholesale energy market did not violate the Equal Protection clauses of the Iowa or U.S. Constitutions or the Commerce Clause of the U.S. Constitution.View "Nextera Energy Res., LLC v. Iowa Utils. Bd." on Justia Law

Covanta Maine, LLC (Covanta), a subsidiary of Covanta Energy, appealed from orders of the Public Utilities Commission denying Covanta's requests for certification of two of its facilities as Class I new renewable resources. Covanta argued that the Commission erred by basing its conclusion that the facilities were not refurbished on the ratio of Covanta's expenditures in the facilities to the value of those facilities, and it therefore asserted that the Commission improperly denied certification of its two facilities. The Supreme Court vacated the judgment of the Commission, holding that the Commission erred by establishing a requirement that the expenditures meet some minimum level that equals an unspecified percentage of the total value of the facility. Remanded. View "Covanta Maine, LLC v. Pub. Utils. Comm'n" on Justia Law

This case concerned the mechanics of NSTAR's, an electric distribution company, attempt to shift the recovery of one of it supply-related costs, supply-related bad debt costs, from its distribution rates to its supply rates. NSTAR filed a petition, through which it sought to begin recovery of its supply-related bad debt costs through its supply rates rather than, as before, through its distribution rates. Not withstanding that contention, the department conditioned its approval of NSTAR's petition on a corresponding reduction in NSTAR's distribution rates. The court concluded that the department had failed to provide an adequate statement of its reasons for imposing the condition. Specifically, the court was unable to determine whether this aspect of the department's order rested on a determination that NSTAR did not follow the correct procedural path in removing supply-related bad debt costs from its distribution rates, or rather on a determination that NSTAR did not in fact remove such costs from its distribution rates at all. The court concluded further that certain of the department's factual determinations were not adequately supported by subsidiary findings and that an aspect of the department's analysis was legally erroneous. Accordingly, the department's order was to be vacated and the matter remanded for further proceedings.View "NSTAR Electric Co. vs. Dept. of Public Utilities" on Justia Law

Electric distribution utilities that opt to provide service under an electric security plan must undergo an annual earnings review. If their plan resulted in "significantly excessive earnings" compared to similar companies, the utility must return the excess to its customers pursuant to Ohio Rev. Code 4928.143(F). In the case below, the Public Utilities Commission found that Columbus Southern Power's 2009 earnings were significantly excessive by over $42 million. There were three appeals from the order. Columbus Southern Power asserted that section 4928.143(F) was unconstitutionally vague, and the Ohio Energy Group and the Office of the Ohio Consumers' Counsel (collectively, OEG) and Industrial Energy Users-Ohio (IEU) raised different arguments that the commission erred in applying the statute. The Supreme Court affirmed the commission's order, holding (1) the statute was not unconstitutionally vague, and (2) neither OEG nor IEU showed that the commission unreasonably interpreted or applied section 4928.143(F). View "In re Columbus S. Power Co." on Justia Law

Two public utilities (the companies) were wholly owned subsidiaries of appellant FirstEnergy Corporation. Appellees were residential customers of the companies. The customers filed a class-action complaint against FirstEnergy and the companies in the county court of common pleas. The complaint raised four causes of action: declaratory judgment, breach of contract, fraud, and injunctive relief. The trial court granted FirstEnergy's motion to dismiss the complaint for lack of jurisdiction, finding that the Public Utilities Commission of Ohio (PUCO) had exclusive jurisdiction over the allegations in the complaint. The court of appeals affirmed in all respects except with regard to the customers' fraud claim. The appellate court determined on two separate grounds that the trial court had jurisdiction over the fraud claim and remanded that claim to the trial court. The Supreme Court reversed the appellate court, holding (1) the customers' fraud claim was not a pure tort action, but rather, was a claim that the companies were overcharging the customers for electric service; and (2) because the complaint was challenging the rates charged for utility service, it fell within the exclusive jurisdiction of the PUCO. View "DiFranco v. FirstEnergy Corp." on Justia Law

The City of Reynoldsburg was a municipal corporation governed by a charter. Intervening appellee, Columbus Southern Power Company (CSP), was a public utility and provided electric power to the City and its residents. At issue in this case was whether the City or CSP bore the cost to relocate overhead power lines underground. Specifically, the City sought a ruling that its right-of-way ordinance requiring all overhead power lines to be relocated underground at the sole cost of the public utility took precedence over CSP's commission-approved tariff, which provided that municipalities shall pay the costs whenever they required CSP to relocate overhead electrical distribution lines underground, in this particular aspect. The City filed a complaint with the Public Utilities Commission, contending that its ordinance superseded CSP's tariff and that the tariff was unjust, unreasonable, and unlawful. The commission found in favor of CSP. The Supreme Court affirmed the commission's orders, holding that the commission correctly found that the City was required to pay CSP's entire costs for relocating the power lines underground. View "In re Complaint of Reynoldsburg " on Justia Law

Qwest Corporation and the Colorado Public Utilities Commission (PUC) appealed a district court's judgment in favor of the Colorado Office of Consumer Counsel (OCC) that reversed the PUC's decision setting the maximum rate for certain telephone services. Upon review, the Supreme Court concluded that the PUC regularly pursued its authority because it considered all of the statutorily-mandated factors and its decision is supported by substantial evidence. The Court therefore reversed the judgment of the district court.View "Ofc. of Consumer Counsel v. Pub. Utils. Comm'n" on Justia Law

Kansas One-Call System (One-Call) managed and operated a centralized notification center for diggers working on underground utility infrastructure to use before they started excavating pursuant to the Kansas Underground Utility Damage Prevention Act (KUUDPA). The Kansas Legislature later amended the KUUPDA, which financially affected One-Call. One-Call sued to enjoin enforcement of the amendments on the grounds that the amendments violated (1) the original purpose provision of the Kansas Constitution, (2) the one-subject rule, (3) the separation of powers doctrine, and (4) the Equal Protection Clause and the Taking Clause of the U.S. Constitution. The trial court granted summary judgment in favor of the State. The Supreme Court affirmed, holding that the challenged amendments were valid. View "Kansas One-Call Sys. v. State" on Justia Law

Duke Energy Ohio, Inc. sought to recover over $30 million for the costs of restoring its system following the destruction caused by Hurricane Ike. The Public Utilities Commission allowed Duke to recover roughly half that amount, finding that several of Duke's requests lacked adequate supporting evidence. Duke appealed, raising five propositions of law, all variations on the theme that the Commission's order lacked record support. The Supreme Court affirmed, holding (1) the Commission's finding reducing the amount that Duke could recover because it found substantial problems with the supporting evidence was confirmed by the record; and (2) each of Duke's arguments lacked merit. View "In re Application of Duke Energy Ohio, Inc." on Justia Law

One of Summit Water Distribution Company's (SWDC) minority shareholders, Bear Hollow Restoration, filed a complaint requesting a review and investigation of SWDC's exemption from public regulation under the now-repealed Utah Admin. R. 746-331-1. The Public Service Commission dismissed the complaint on the basis that SWDC was not a public utility, and therefore, the Commission did not have jurisdiction. The Supreme Court affirmed the Commission's dismissal, holding (1) the allegations in Bear Hollow's complaint were insufficient to establish that SWDC served the public generally or that the Commission had jurisdiction; (2) Bear Hollow was not prejudiced by repeal of Rule 746-331-1 because the rule applied only to internal agency decisions and the underlying substantive law remained in place; and (3) the Commission did not abuse its discretion when it refused Bear Hollow's amended complaint after the original complaint had been dismissed.View "Bear Hollow Restoration, LLC v. Utah Pub. Serv. Comm'n" on Justia Law