Justia Energy, Oil & Gas Law Opinion Summaries

In 2008, the Ohio General Assembly enacted Senate Bill 221, which substantially revised the regulation of electric service in Ohio. The cost of electric power generation increased significantly. Faced with a lack of competition, rising electricity prices and unfavorable market-based rates, the commission and utilities responded with various rate plans not expressly contemplated by statute. The state legislature revised its bill to address areas of concern with electric markets, in particular, it established new standards to govern generation rates. This appeal stems from a proceeding in which the Ohio Public Utilities Commission authorized new generation rates for the American Electric Power operating companies (AEP) Columbus Southern Power Company and Ohio Power Company. AEP applied for an "electric security plan" instead of a market-rate offer. Appellants, the Office of the Ohio Consumers' Counsel (OCC) and Industrial Energy Users-Ohio (IEU) raised 13 propositions of law in its suit all relating to purchase of electricity. The Supreme Court found that the commission committed reversible error on three of the thirteen grounds, and affirmed the commission's ruling on all other issues. The case was then remanded to the commission for resolution of three issues: (1) the commission unlawfully granted a retroactive rate increase, but the OCC is not entitled to a refund; (2) in approving a provider-of-last-resort (POLR), the commission relied on a justification lacking any record support; and (3) the commission erred in determining that electric security plans (ESPs) may include items not specifically authorized by statute.

Pro se Plaintiff-Appellant Burton sought an injunction against Defendant-Appellee Dominion Nuclear to halt operation of a power plant, claiming that the plant would cause unreasonable radioactive pollution to Long Island Sound and to an estuary located near her property. Plaintiff also filed an ex parte application for a temporary restraining order to stop Defendant from using a stretch power uprate increase unless Defendant could do so without an increase of radioactive discharge. The Court affirmed the lower court's decision to dismiss Plaintiff's case on grounds that she lacked standing under state environmental protection laws, common law nuisance principles, and federal preemption. Holding that Plaintiff's ex parte application "does not contain allegations of substantive violations giving rise to unreasonable pollution⦠in excess of that permitted under the regulatory scheme," the Court upheld the lower courts's decision to dismiss this claim for lack of standing.