Justia Utilities Law Opinion Summaries

This case involves a challenge to the District of Columbia Public Service Commission’s approval of Potomac Electric Power Company’s (Pepco) 2024–2026 multi-year electric rate plan. The petitioners, the Office of the People’s Counsel and the Apartment and Office Building Association, objected to the Commission’s decision to approve a $123.4 million rate increase following a “legislative-style” hearing that did not permit the presentation or cross-examination of witnesses. The petitioners argued that the process failed to address significant factual disputes, particularly concerning the Effective Rate Adjustment (ERA) and Bill Stabilization Adjustment (BSA), mechanisms affecting rates for large commercial customers. They maintained that an evidentiary hearing was required to resolve these factual disagreements.The Public Service Commission, after receiving written testimony and briefs, denied requests for an evidentiary hearing and approved Pepco’s rate plan with modifications. It concluded that there were no material factual disputes necessitating cross-examination or oral testimony, and thus a legislative-style hearing was sufficient. The Commission also rejected applications for reconsideration, reiterating its view that the contested issues were either legal or policy-based rather than factual. However, there were substantial discrepancies between the parties’ calculations regarding the BSA deferral balances and concerns about the ERA’s impact on certain customer classes.The District of Columbia Court of Appeals reviewed the case and determined that this proceeding was a “contested case” under the D.C. Administrative Procedure Act and that the Commission was required to hold an evidentiary, trial-type hearing because there were genuine disputes over material facts. The court held that the Commission’s failure to provide such a hearing rendered its orders unsustainable. Accordingly, the court vacated the Commission’s orders and remanded the case for further proceedings, instructing the Commission to hold an evidentiary hearing. View "Office of the People's Counsel v. District of Columbia Public Service Commission" on Justia Law

A group of residents opposed the construction of energy and telecommunications projects in Vermont by seeking to intervene in proceedings before the Vermont Public Utility Commission (PUC). The PUC granted certificates of public good (CPG) for both projects—one for a solar project and the other for a telecommunications tower. After these decisions, the intervenors filed timely motions under PUC Rule 2.221 to alter or amend the PUC’s orders. The PUC denied both motions, finding that Rule 2.221 incorporated the language of Vermont Rule of Civil Procedure 59 and that the intervenors had not met the necessary standard for relief. The intervenors then appealed the denials to the Vermont Supreme Court.The developers moved to dismiss the appeals, arguing that the notices of appeal were filed more than thirty days after the PUC’s final decisions and were therefore untimely. They contended that PUC Rule 2.221 motions did not toll the time to appeal under Vermont Rule of Appellate Procedure 4(b), as those rules reference only motions filed in the superior court and not with the PUC.The Vermont Supreme Court held that a timely motion to alter or amend filed with the PUC under Rule 2.221 is substantively the same as a Vermont Rule of Civil Procedure 59 motion. The Court explained that, under Vermont Rule of Appellate Procedure 4(b)(5), such motions toll the time for filing an appeal from a PUC decision. The Court distinguished prior cases involving appeals from municipal panels, where the rules did not allow for tolling. Because the intervenors’ motions were timely and tolled the appeal period, the Court denied the motions to dismiss, allowing the appeals to proceed. View "In re Petition of VT Real Estate Holdings 1 LLC" on Justia Law

A licensed electric supplier in Connecticut sought to withdraw its electric supplier license after previously entering into a settlement agreement with the Public Utilities Regulatory Authority (PURA) to resolve various regulatory allegations. This agreement required the supplier to voluntarily stop serving customers in Connecticut for six years but did not expressly require the withdrawal of the license itself. Around the same period, PURA completed a cost-allocation proceeding related to the redesign of residential billing formats, and ordered the supplier to pay an allocated assessment of approximately $179,000. The supplier then moved to withdraw its license, asserting it had no further obligations, but PURA denied the motion without prejudice and directed payment of the assessment before considering license relinquishment.The supplier filed an administrative appeal in the Superior Court for the judicial district of New Britain, challenging PURA’s denial of its withdrawal motion. The supplier argued that the ruling was an appealable final decision in a contested case, or in the alternative, a declaratory ruling. The Superior Court granted PURA’s motion to dismiss for lack of subject matter jurisdiction, holding that the denial was not a final decision in a contested case because no statute or regulation required PURA to provide a hearing on motions to withdraw a license. The court also declined to treat the supplier's complaint as a declaratory judgment action.On appeal, the Supreme Court of Connecticut reviewed whether the denial of the motion to withdraw was appealable as either a final decision in a contested case or a declaratory ruling. The court held that the supplier had waived its declaratory ruling argument by taking the opposite position in the trial court. The court further held that PURA was not statutorily required to provide a hearing on a motion to withdraw a license, so the matter was not a contested case. The Supreme Court affirmed the Superior Court’s dismissal for lack of subject matter jurisdiction. View "Clearview Electric, Inc. v. Public Utilities Regulatory Authority" on Justia Law

After Hurricane Ida struck Louisiana in August 2021, Terrebonne Parish, which operates Houma’s electric system, requested help from Lafayette Utilities Systems (LUS) to restore power. LUS, in turn, sought assistance from the City of Wilson, North Carolina, leading to mutual aid agreements signed by Terrebonne Parish, LUS, and the City of Wilson. As a result, thirteen City of Wilson employees, including Kevin Ray Worrell, traveled to Louisiana to assist with power restoration. These workers stayed in Lafayette and commuted daily to Houma. On September 10, 2021, while driving a City of Wilson vehicle back to the hotel after work, Worrell was involved in an accident, injuring the plaintiffs.The plaintiffs initially filed tort actions in the St. Mary Parish district court, which were consolidated and removed to the United States District Court for the Western District of Louisiana based on diversity jurisdiction. The defendants moved for dismissal or summary judgment, arguing that Mr. Worrell was entitled to immunity under the Louisiana Homeland Security and Emergency Assistance and Disaster Act (LHSEADA). The district court agreed, finding that Worrell acted as a “representative” of Terrebonne Parish under the statute and thus was immune from liability. The district court also determined that commuting from the work site fell within emergency preparedness activities covered by the Act.On appeal, the United States Court of Appeals for the Fifth Circuit certified questions to the Supreme Court of Louisiana regarding the definition of “representative” under the LHSEADA. The Supreme Court of Louisiana held that Worrell, as an employee of the City of Wilson, North Carolina, working pursuant to mutual aid agreements that explicitly preserved his status as a City of Wilson employee and independent contractor, was not a “representative” of the State of Louisiana or its subdivisions for purposes of LHSEADA immunity. Therefore, he was not entitled to statutory immunity. The Court found it unnecessary to reach the second certified question. View "BREAUX VS. WORRELL" on Justia Law

A municipally owned utility in San Antonio owns power poles used for distributing electricity. Since 1984, a telecommunications provider (and its predecessor) has attached its equipment to these poles under a written agreement. The contract set a per-pole attachment fee, allowed for annual rate increases, and included a clause requiring both parties to comply with all applicable laws affecting their rights and obligations under the agreement. Over time, the utility charged one telecommunications provider higher rates, while continuing to invoice another provider at the original rate, resulting in a disparity in charges. After amendments to the Public Utility Regulatory Act (PURA) in 2005 prohibited discriminatory pole attachment rates and required uniform and federally capped rates, the provider paying the higher fee sued, seeking relief for breach of contract and statutory violations.The trial court, after abating proceedings while the Public Utility Commission (PUC) considered the matter, granted partial summary judgment for the utility on statutory and unjust enrichment claims, but for the provider on the breach-of-contract claim. The utility appealed. The Thirteenth Court of Appeals reversed, holding that the agreement did not incorporate new statutes into its terms, and thus the provider could not base its contract claim on the utility’s alleged statutory violations.The Supreme Court of Texas reviewed the case. It held that the parties’ contract—by its express terms—incorporated post-1984 legal changes affecting their rights and obligations, including the 2005 PURA amendments. The Court concluded that the provider could pursue its contract claim based on the utility’s alleged failure to comply with current law, including prohibitions on discriminatory and excessive pole attachment rates. The Court reversed the judgment of the court of appeals and remanded the case to the trial court for further proceedings. View "SPECTRUM GULF COAST, LLC v. CITY OF SAN ANTONIO" on Justia Law

Two development companies owned land in Johnson County, Texas, within the extraterritorial jurisdiction of the City of Mansfield but outside the city’s corporate boundaries. To develop this land, the companies needed access to retail water services, which, under state law, could be provided only by the Johnson County Special Utility District (“JCSUD”) because it held the exclusive certificate of convenience and necessity (CCN) for the area. However, a contract between JCSUD and the City of Mansfield required JCSUD to secure Mansfield’s written consent, which could be withheld at the City’s discretion, before providing water services within the city’s extraterritorial jurisdiction. The developers’ efforts to obtain water service were unsuccessful, as Mansfield demanded annexation and additional fees, ultimately refusing to formalize an agreement.After unsuccessful negotiations and attempts to compel service through the Texas Public Utility Commission, the developers sued the City of Mansfield in the United States District Court for the Northern District of Texas. They alleged violations of the Sherman Act and brought state-law claims. The district court, adopting a magistrate judge’s recommendation, dismissed the antitrust claims with prejudice, holding that Mansfield was entitled to state-action antitrust immunity under Texas law, and declined to exercise supplemental jurisdiction over the state-law claims.The United States Court of Appeals for the Fifth Circuit reviewed whether Mansfield was entitled to state-action immunity. The Fifth Circuit held that, although Texas law authorizes monopolies for water utilities through CCNs, it does not clearly articulate or authorize the City of Mansfield to act anticompetitively concerning the area in question, since the CCN belonged to JCSUD. Therefore, the court reversed the district court’s grant of state-action immunity and remanded the case for further proceedings. View "Megatel v. Mansfield" on Justia Law

Several rural electricity distribution cooperatives entered into long-term, all-requirements contracts with a generation-and-transmission cooperative, requiring them to purchase nearly all of their electric service from the cooperative through 2050. Some of these distribution cooperatives later sought to terminate their memberships and contracts early. In response, the generation-and-transmission cooperative proposed a methodology for calculating an exit fee and submitted it to the Federal Energy Regulatory Commission (FERC) for approval.FERC initiated hearing procedures to determine a just and reasonable exit-fee methodology. In those proceedings, both the cooperative and FERC’s Trial Staff presented different approaches: the cooperative advocated a lost-revenues approach, while Trial Staff proposed a balance-sheet approach. An administrative law judge found that the cooperative’s methodology was not just and reasonable, but that the balance-sheet approach, with modifications, was. The cooperative sought review from FERC, which agreed with the administrative law judge, rejecting the lost-revenues approach and directing the cooperative to adopt the modified balance-sheet methodology.The cooperative then sought review in the United States Court of Appeals for the Tenth Circuit, arguing that FERC’s adopted methodology was arbitrary and capricious. The Tenth Circuit reviewed FERC’s orders under the standards of the Administrative Procedure Act. The court held that FERC did not act arbitrarily or capriciously in rejecting the lost-revenues approach, adopting the balance-sheet approach, implementing a transmission-crediting mechanism, or applying the methodology to certain members despite existing contracts. The Tenth Circuit concluded that FERC engaged in reasoned decisionmaking, supported by substantial evidence, and denied the petitions for review. View "Tri-State Generation and Transmission Association, v. FERC" on Justia Law

A company was certified by the state regulator to operate as both a competitive retail electric and natural gas service provider. After receiving multiple consumer complaints, including allegations of unauthorized enrollments, deceptive sales practices, and improper telemarketing and door-to-door solicitation during a pandemic, the regulator initiated a formal investigation. The investigation uncovered evidence that the company and its vendors engaged in misleading marketing, falsified call recordings, forged consumer signatures, spoofed caller identification to appear as a utility or other trusted source, and failed to maintain required records. The company also solicited customers in violation of specific pandemic-related commission orders. The company argued that it lacked responsibility for vendors’ actions and had relied on the advice of counsel, and it challenged procedural aspects of the investigation.The Public Utilities Commission of Ohio conducted an evidentiary hearing and found the company had committed numerous violations of statutes and commission rules. It rescinded the company’s operating certificates, ordered it to cease operations in Ohio, imposed a $1.44 million forfeiture, and required the company to “rerate” affected consumers, providing restitution for the difference between the company’s rates and the utility’s default rates. The company’s application for rehearing was granted for further consideration but ultimately denied, and the company then appealed to the Supreme Court of Ohio.The Supreme Court of Ohio affirmed the rescission of the company’s operating certificates, holding that the commission provided adequate notice and opportunity for hearing and that the findings of statutory and rule violations were supported by the evidence. However, the court found the commission failed to sufficiently explain the basis for the forfeiture amount, violating statutory requirements for reasoned decision-making. The court also determined the rerating order was unclear as to which consumers were affected. The court reversed the forfeiture and rerating orders and remanded the matter for the commission to clarify and support its decisions. View "In re RPA Energy, Inc." on Justia Law

Virginia Electric and Power Company sought certificates of public convenience and necessity to construct two high-voltage overhead transmission line projects in Loudoun County, including the Aspen-Golden and Apollo-Twin Creeks Projects. The Aspen-Golden Project involved approximately nine miles of transmission lines, some running beside Route 7 in the Lansdowne community. VEPCO evaluated several routes and preferred Route 1AA, asserting it minimized adverse impacts. The Apollo-Twin Creeks Project involved about 1.9 miles of transmission lines, some collocated with the Aspen-Golden lines, to serve data centers. VEPCO proposed overhead construction for both projects due to feasibility concerns with underground alternatives.The State Corporation Commission consolidated the applications for review. Loudoun County and Lansdowne Conservancy objected to overhead lines along Route 7, arguing for underground construction to protect scenic and historic assets, including Belmont Manor. They submitted an Updated Hybrid Proposal for partial underground construction, but VEPCO and Commission staff questioned its feasibility, cost, and engineering challenges. After public hearings and detailed testimony, the hearing examiner recommended approval of overhead construction along Route 1AA, finding underground options infeasible within required timelines and statutory criteria, and noting the proposal’s analytical deficiencies.The Supreme Court of Virginia reviewed the Commission’s final orders, affirming the Commission’s approval of the CPCNs. The Court held that the Commission properly verified the need for the Aspen-Golden Project, reasonably rejected underground construction due to cost, engineering challenges, and timing, and gave due consideration to the local comprehensive plan and scenic easement. The Court concluded that the Commission’s decisions minimized adverse impacts to the extent reasonably practicable and found no abuse of discretion in declining to impose additional mitigation conditions or in approving the Apollo-Twin Creeks Project. The judgments were affirmed. View "Lansdowne Conservancy v. SCC" on Justia Law

A solar energy developer sought to build a facility in Maine with an initial capacity of 4.98 megawatts, later reduced to 1.99 megawatts after changes to state law. The developer submitted an interconnection application to the local utility, obtained necessary permits, made payments, and began construction. During the project’s development, delays occurred in procuring key equipment, such as the meter and voltage regulator, resulting in a projected completion date after the statutory deadline of December 31, 2024. Despite the developer’s efforts, the facility was not operational by the required date.The developer petitioned the Maine Public Utilities Commission for a good cause exemption from the Commercial Operation Date deadline under Maine’s Net Energy Billing statute. After discovery and intervention by the Office of the Public Advocate, a Commission staff report recommended granting the exemption. However, the Commission ultimately denied the exemption, finding insufficient evidence that the developer ever received an initial construction schedule projecting completion within the 2024 deadline. The developer subsequently petitioned to reopen the record to submit additional evidence, but the Commission did not act on the petition within the required timeframe, resulting in a deemed denial. The developer appealed to the Maine Supreme Judicial Court.The Maine Supreme Judicial Court affirmed the Commission’s orders. The Court held that the Commission’s factual finding—that the developer failed to prove receipt of an initial schedule with a timely completion date—was supported by substantial evidence. The Court also found the Commission’s interpretation of the statute reasonable, its decision not arbitrary, and its refusal to reopen the record not an abuse of discretion. The judgment of the Commission was affirmed. View "Ellsworth ME Solar, LLC v. Public Utilities Comission" on Justia Law