Minnesota Energy Resources Corporation (MERC) challenged the Commissioner of Revenue’s 2008 to 2012 valuation of its natural-gas pipeline distribution system. After a trial, the Commissioner determined (1) for each of the years from 2008 to 2011, the market value of MERC’s property was lower than the Commissioner’s valuation; and (2) for 2012, the Commissioner undervalued MERC’s pipeline distribution system. Both MERC and the Commissioner appealed. The Supreme Court reversed in part, holding (1) the tax court’s explanation of the beta factors it used to calculate MERC’s cost of equity was insufficient; and (2) the tax court evaluated MERC’s evidence of external obsolescence under the wrong legal standard. Remanded. View "Minnesota Energy Resources Corp. v. Commissioner of Revenue" on Justia Law
After respondent was granted a permit by the Minnesota Public Utilities Commission (âMPUCâ) for routing and construction of a pipeline to deliver natural gas to an energy center within appellantâs city limits, appellant commenced an action for declaratory and injunctive relief seeking to require respondent to obtain a franchise from appellant to operate the pipeline. The district court dismissed, concluding that appellant did not have franchise authority over respondentâs pipeline, and the appeals court affirmed. The Supreme Court reversed and remanded, holding (1) a municipality is authorized by Minn. Stat. 301B.01 to impose a franchise on a public utility that has constructed and operates a gas pipeline located on public property within the municipality, regardless of whether the pipeline itself supplies gas to the public; (2) a municipality is authorized by Minn. Stat. 216B.36 to impose a franchise on a public utility that serves customers within the municipality or that uses public property within the municipality to serve customers elsewhere; and (3) the issuance of a permit by the MPUC for the construction of a gas pipeline does not preempt pursuant to Minn. Stat. 216G.02 a municipal ordinance requiring a franchise for the operation of the pipeline after construction is complete.
Posted in: Construction Law, Energy, Oil & Gas Law, Government & Administrative Law, Minnesota Supreme Court