Justia Energy, Oil & Gas Law Opinion Summaries

Petitioners sought review of FERC's orders affecting the administration of the Independent System Operator-New England (ISO-NE) and specifically directed to curtailment of the exercise of market power in the New England energy market. The court held that FERC has jurisdiction to regulate the parameters comprising the Forward Capacity Market, and that applying offer-floor mitigation fits within the Commission's statutory rate-making power. The court concluded that none of the petitioners established that FERC has committed reversible error and the court denied the petition for review. View "New England Power Gen. Assoc. v. FERC" on Justia Law

Public Service Company of Colorado applied for a tax refund from the state Department of Revenue. The company argued that it was entitled to a refund because it paid taxes when it was actually eligible for an exemption. The district court held in favor of the company, concluding that electricity was tangible personal property and that the production of electricity constituted manufacturing, thus entitling the company to the exemption (the "manufacturing exemption" under 39-26-709(1)(a)(II) C.R.S. (2013)). Upon review of the Department's argument on appeal, the Supreme Court reversed, finding that section 39-26-104(1)(d.1) applied in this case: electricity did not qualify as tangible personal property, and that the Code "contemplate[d] that 'electricity furnished and sold'" was to be taxed as a service. View "Department of Revenue v. Public Service Co." on Justia Law

The issue this case presented for the Supreme Court's review was an order of the Idaho Public Utilities Commission holding that it had jurisdiction to decide whether the force majeure clauses in the Appellants' contracts with Idaho Power Company excused them from their contractual obligations to have their power generation facilities constructed and in operation by specified dates in order to sell electricity to Idaho Power. Finding no reversible error, the Supreme Court affirmed the Commission. View "Idaho Power v. New Energy Two & IPUC" on Justia Law

Plaintiffs filed suit challenging a Maryland program subsidizing the participation of a new power plant in the federal wholesale energy market. Maryland's plan was ultimately formalized in the Generation Order. The district court agreed with plaintiffs' contention that the Maryland scheme was preempted under the Federal Power Act's (FPA), 16 U.S.C. 824(b)(1), authorizing provisions, which grant exclusive authority over interstate rates to FERC. The court concluded that the Generation Order is field preempted because it seeks to regulate a field that the FPA has occupied. The court also concluded that the Generation Order is conflict preempted because it conflicts with the auction rates approved by FERC and conflicts with PJM's new entry price adjustment (NEPA). Accordingly, the court held that the Generation Order was preempted under federal law and affirmed the judgment of the district court. View "PPL EnergyPlus, LLC v. Nazarian" on Justia Law

Power Survey Company sought a writ of certiorari before the Supreme Court contending that the Public Utilities Commission improperly interpreted and applied the Contact Voltage Statute when it approved the portion of the Narragansett Electric Company’s (NEC) contact voltage program providing for the issuance of a request for proposal for the purpose of choosing a vendor to provide the technology for the NEC’s contact voltage testing. The Supreme Court issued the writ. Respondents, the NEC and the Division of Public Utilities and Carriers, moved to quash the writ on the grounds that it was not timely filed. The Supreme Court granted Respondents’ motions, holding that, under the facts of this case, Power Survey’s petition was untimely. View "In re Proceedings to Establish a Contact Voltage Detection & Repair Program" on Justia Law

Petitioners sought review of FERC's final rule governing what FERC calls "demand response resources in the wholesale energy market." The rule sought to incentivize retail customers to reduce electricity consumption when economically efficient. The court concluded that, because FERC's rule entails direct regulation of the retail market - a matter exclusively within state control - it exceeds the Commission's authority. Alternatively, even if the court assumed that FERC had statutory authority to execute the final rule, Order 745 would still fail because it was arbitrary and capricious. Given Order 745's regulation of the retail market, the court vacated the rule in its entirety as ultra vires agency action. Accordingly, the court vacated and remanded the rulings. View "Electric Power Supply Assoc. v. FERC" on Justia Law

Appellant, a coal mine operator, filed suit against the Secretary, challenging a Department of the Interior regulation requiring mine operators to pay a reclamation fee when the coal is ultimately sold or used, rather than immediately after the coal is removed from the ground. Appellant argued that the regulation could not be constitutionally applied to coal sold for export because the Export Clause of the Constitution states that "No Tax or Duty shall be laid on Articles exported from any state." U.S. Const. Art. I. 9, cl.5. Section 1276 of the Surface Mining Control and Reclamation Act, 30 U.S.C. 1276(a)(1) explicitly provides that all challenges to regulations promulgated under the Act must be brought within sixty days of a rule's promulgation. The court concluded that section 1276 was applicable in this case and the court agreed with the district court that appellant's challenge was untimely. Accordingly, the court affirmed the judgment of the district court. View "Coal River Energy, LLC v. Jewell, et al." on Justia Law

In consolidated appeals, the issue before the Supreme Court concerned the attorney’s fees and costs awarded in the 2006 Trans-Alaska Pipeline System tax assessment case. The superior court decided that the Fairbanks North Star Borough, the City of Valdez, and the North Slope Borough were prevailing parties for purposes of attorney’s fees and costs because they had prevailed on the main issues of the case. The superior court also applied the enhancement factors to raise the presumptive award from 30 percent to 45 percent of the prevailing parties’ reasonable attorney’s fees. The owners of the Trans-Alaska Pipeline System appealed, arguing the superior court should have applied Alaska Appellate Rule 508 instead of Civil Rules 79 and 82. In the alternative, they contended: (1) that the three municipalities did not prevail as against the owners; (2) that fees should have been allocated between separate appeals; (3) that none of the prevailing parties were entitled to enhanced attorney’s fees; and (4) that the Fairbanks North Star Borough’s award should have been reduced as recommended by a special master. The Fairbanks North Star Borough and the City of Valdez cross-appealed, arguing that the superior court should have viewed this case as one involving a money judgment for purposes of an attorney’s fees award under Rule 82(b)(1) and, in the alternative, that they were entitled to a greater enhancement of their fees. Finding no reversible error, the Supreme Court affirmed. View "BP Pipelines (Alaska) Inc. v. Alaska, Dept. of Revenue" on Justia Law

Following the 1941 attack on Pearl Harbor, each of the Oil Companies entered into contracts with the government to provide high-octane aviation gas (avgas) to fuel military aircraft. The production of avgas resulted in waste products such as spent alkylation acid and “acid sludge.” The Oil Companies contracted to have McColl, a former Shell engineer, dump the waste at property in Fullerton, California. More than 50 years later, California and the federal government obtained compensation from the Oil Companies under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. 9601, for the cost of cleaning up the McColl site. The Oil Companies sued, arguing the avgas contracts require the government to indemnify them for the CERCLA costs. The Court of Federal Claims granted summary judgment in favor of the government. The Federal Circuit reversed with respect to breach of contract liability and remanded. As a concession to the Oil Companies, the avgas contracts required the government to reimburse the Oil Companies for their “charges.” The court particularly noted the immense regulatory power the government had over natural resources during the war and the low profit margin on the avgas contracts. View "Shell Oil Co. v. United States" on Justia Law

In 2012, Monongahela Power Company (“Mon Power”) filed a petition with the Public Service Commission of West Virginia ("Commission") to approve a generation resource transaction between it and Allegheny Energy Supply, LLC (“AE Supply”). The transaction consisted of Mon Power’s acquisition of AE Supply’s interest in the Harrison Power Station (“the plant”) and Mon Power’s recovery of a portion of its investment in that acquisition. The Commission approved a $257 million acquisition adjustment in the purchase price of the plant and allowed Mon Power, under certain conditions, to pass the acquisition adjustment to its customers in the rates that customers pay for electricity. The Supreme Court affirmed the Commission’s order, holding that the Commission’s findings were not contrary to or unsupported by the evidence and were not arbitrary, and the Commission’s application of the law was consistent with Commission precedent. View "W. Va. Citizen Action Group v. Pub. Serv. Comm’n of W. Va." on Justia Law