Justia Energy, Oil & Gas Law Opinion Summaries

The Supreme Court held that the Minnesota Public Utilities Commission (MPUC) lacks the authority to require Otter Tail Power Company to amend an existing transmission cost-recovery rider (TCRR) approved under Minn. Stat. 216B.16, subd. 7b(b) to include the costs and revenues associated with two high-voltage interstate transmission lines, known as the Big Stone Access Transmission Lines (Big Stone Lines).In 2013, the MPUC approved Otter Tail's request for a TCRR for three transmission projects. In 2016, Otter Tail filed this general rate case with the MPUC seeking an annual-rate increase on its retail electricity sales to help offset company-wide investment costs and asserted that the costs and revenues associated with the Big Stone Lines should not be considered when setting the retail rates. The MPUC directed Otter Tail to amend the TCRR approved in 2013 to include the costs and revenues of the Big Stone Lines. The court of appeals reversed. The Supreme Court affirmed, holding that the MPUC does not have statutory authority to compel Otter Tail to include the Big Stone Lines in the TCRR. View "In re Application of Otter Tail Power Company for Authority to Increase Rates for Electric Service in Minnesota" on Justia Law

The Supreme Judicial Court affirmed the decision of the Maine Public Utilities Commission granting Central Maine Power Company's (CMP) petition for a certificate of public convenience and necessity (CPCN) for the construction and operation of the New England Clean Energy Connect (NECEC) project, holding that the Commission followed the proper procedure and that there was sufficient evidence in the record to support the Commission's findings.In 2017, CMP filed a petition with the Commission for a CPCN for the NECEC project, a 145-mile transmission line. The Commission voted to grant CMP a CPCN for the construction and operation of the NECEC project. The Supreme Judicial Court affirmed, holding (1) the Commission did not commit legal error when it decided that CMP was not required to file the results of a third-party investigation into nontransmission alternatives; (2) the Commission did not err in its construction and application of Me. Rev. Stat. 35-A, 3132(6); and (3) the Commission did not abuse its discretion in approving a stipulation between the parties requiring the project to provide myriad benefits to ratepayers and the State as conditions to the recommended Commission approval of the stipulated findings and issuance of the CPCN. View "NextEra Energy Resources, LLC v. Maine Public Utilities Commission" on Justia Law

FES distributes electricity, buying it from its fossil-fuel and nuclear electricity-generating subsidiaries. FES and a subsidiary filed Chapter 11 bankruptcy. The bankruptcy court enjoined the Federal Energy Regulatory Commission (FERC) from interfering with its plan to reject certain electricity-purchase contracts that FERC had previously approved under the Federal Power Act, 16 U.S.C. 791a or the Public Utilities Regulatory Policies Act, 16 U.S.C. 2601, applying the ordinary business-judgment rule and finding that the contracts were financially burdensome to FES. The counterparties were rendered unsecured creditors to the bankruptcy estate. The Sixth Circuit agreed that the bankruptcy court has jurisdiction to decide whether FES may reject the contracts, but held that the injunction was overly broad (beyond its jurisdiction) and that its standard for deciding rejection was too limited. The public necessity of available and functional bankruptcy relief is generally superior to the necessity of FERC’s having complete or exclusive authority to regulate energy contracts and markets. The bankruptcy court exceeded its authority by enjoining FERC from “initiating or continuing any proceeding” or “interfer[ing] with [its] exclusive jurisdiction,” given that it did not have exclusive jurisdiction. On remand, the bankruptcy court must reconsider and decide the impact of the rejection of these contracts on the public interest—including the consequential impact on consumers and any tangential contract provisions concerning such things as decommissioning, environmental management, and future pension obligations—to ensure that the “equities balance in favor of rejecting the contracts.” View "In re: FirstEnergy Solutions Corp." on Justia Law

New Energy Economy (NEE) appealed a New Mexico Public Regulation Commission (Commission or PRC) order approving Public Service Company of New Mexico’s (PNM) renewable energy procurement plan (Plan) for the year 2018. In its application, PNM sought to demonstrate its compliance with Renewable Energy Act requirements and obtain the Commission’s approval of renewable energy procurements, among other items. NEE challenged the Commission’s approval of PNM’s 2018 Plan by arguing that PNM’s proposed procurement of solar energy generating facilities relied on an unfair request for proposal (RFP) process. NEE contended PNM designed its RFP to limit the universe of potential bidders and select its predetermined, preferred type of renewable energy bid. After review, the New Mexico Supreme Court concluded NEE did not meet its burden of proving that the Commission’s approval of the solar energy procurement was unreasonable or unlawful because evidence in the record supported the Commission’s determination that the challenged provisions of the RFP were reasonable under the facts and circumstances of this case. The Court, therefore, affirmed the Commission's final order approving PNM's 2018 Plan. View "N.M. Indus. Energy Comm'n v. N.M. Pub. Regulation Comm'n" on Justia Law

The Natural Gas Act (NGA), 15 U.S.C. 717, allows private gas companies to exercise the federal government’s power to take property by eminent domain, if the company has a Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission (FERC); was unable to acquire the property by contract or reach agreement about the amount to be paid; and the value of the property exceeds $3,000. PennEast, scheduled to build a pipeline through Pennsylvania and New Jersey, obtained federal approval for the project and filed suit under the NGA to condemn and gain immediate access to properties along the pipeline route, including 42 properties owned, at least in part, by New Jersey or arms of the state. New Jersey sought dismissal, citing the Eleventh Amendment. The district court ruled in favor of PennEast. The Third Circuit vacated. The Eleventh Amendment recognizes that states enjoy sovereign immunity from suits by private parties in federal court. New Jersey has not consented to PennEast’s condemnation suits and its sovereign immunity has not been abrogated by the NGA. The federal government’s power of eminent domain and its power to hale sovereign states into federal court are separate and distinct. In the NGA, Congress has delegated only the power of eminent domain. View "In re: PennEast Pipeline Co. LLC" on Justia Law

Neighbors of a proposed solar electric-generation facility challenged the Public Utility Commission's (PUC) issuance of a certificate of public good for the project. At the heart of their appeal was a challenge to the PUC’s conclusions that the Apple Hill project would not unduly interfere with the orderly development of the region and would not have an undue adverse effect on aesthetics. Both of these conclusions rested in substantial part on the PUC’s conclusions that the selectboard of the Town of Bennington took the position that the Apple Hill project complied with the applicable Town Plan, and that the 2010 Town Plan did not establish a clear, written standard. After review, the Vermont Supreme Court determined the evidence and the PUC’s findings did not support these conclusions, so it reversed and remanded for further proceedings. View "In re Petition of Apple Hill Solar LLC" on Justia Law

The issues this case presented for the Pennsylvania Supreme Court’s review centered on: (1) whether the penalty imposed against HIKO Energy, LLC (HIKO) was so grossly disproportionate as to violate the Excessive Fines Clause of the Pennsylvania and U.S. Constitutions; (2) whether the penalty impermissibly punished HIKO for litigating; and (3) whether the Pennsylvania Utility Commission (PUC) abused its discretion in imposing a penalty which was not supported by substantial evidence. The Supreme Court concluded HIKO waived its constitutional challenge to the civil penalty in this case, the penalty was not imposed as a punishment against HIKO for opting to litigate its case, and that the PUC’s conclusions in support of imposing the penalty were supported by substantial evidence. View "HIKO Energy, Aplt. v. PA PUC" on Justia Law

The Supreme Court reversed in part the judgment of the court of appeals reversing the judgment of the district court affirming the conclusions of the Public Utilities Commission (PUC) that CPS Energy violated both Tex. Util. Code 54.204(c)'s uniform-charge requirement and section 54.204(b)'s prohibition of discrimination, holding that the PUC could reasonably have concluded, as it did, that CPS Energy violated the plain terms of section 54.204(b).The PUC concluded that a utility that invoices different telecommunications providers a uniform rate nevertheless violates section 54.204(b) if it fails to take timely action to ensure that all pole attachers actually pay the uniform rate it invoices. The court of appeals reversed, holding that if a telecommunications provider does not pay the rate the utility uniformly charges, any discriminatory effect is the telecommunication provider's fault, not the utility's. The Supreme Court reversed, holding that the PUC's finding that CPS Energy failed to make any serious or meaningful effort to collect from AT&T Texas was supported by substantial evidence, and the effect on Time Warner Cable was clearly discriminatory. View "Time Warner Cable Texas LLC v. CPS Energy" on Justia Law

Petitioner, owner of a number of electric generation resources in New England, challenged FERC's adoption of changes to the Transmission, Markets, and Services Tariff proposed by the Independent System Operator for New England (ISO-NE). The DC Circuit held that the parties' dispute may be illusory and thus remanded the record for the agency to sort out what it really means. In this case, at oral argument, counsel for FERC suggested that FERC interpreted the tariff rules in a way that largely squares with Exelon's view of its rights. View "Exelon Corp. v. FERC" on Justia Law

The issue presented to the Pennsylvania Supreme Court in this appeal centered on whether producers of natural gas from certain vertical wells were subject to assessment of a yearly impact fee established by Chapter 23 of the Pennsylvania Oil and Gas Act (“Act 13”). The vertical wells that at issue used the hydraulic fracturing process ("fracking") to extract natural gas through a vertical well bore from Marcellus Shale. Specifically, the issue centered on whether an impact fee would be assessed whenever a vertical well’s production exceeded an average of 90,000 cubic feet of natural gas per day for even one month of the year, or whether the well must exceed this production threshold in every month of the year, for the fee to be imposed. After careful review, the Supreme Court concluded that, under the relevant provisions of Act 13, the impact fee would be imposed on such wells if their production exceeds 90,000 cubic feet of natural gas per day for even one month of the year, as found by the Public Utility Commission (“PUC”). Therefore, the Court reversed the Commonwealth Court’s order, which had reversed the PUC; the PUC's order was reinstated. View "PA Independent Oil & Gas Assoc. v. PUC" on Justia Law