Utilities Industry Litigation Reporter
A federal judge has denied summary judgment in a suit filed by Pacific Gas & Electric Co. alleging that a California law is unconstitutional insofar as it prevents recovery of the utility’s wholesale power costs. Whether the state statute violates the filed-rate doctrine depends on a determination of a “meaningful accounting period” and a consideration of the utility’s non-retail revenue sources, the court said. Pacific Gas & Elec. Co. v. Lynch. P. 3.
Calif. High Court Denies Review of PUC‘s New Accounting Rules The California Supreme Court has denied a petition for review filed by Pacific Gas & Electric Co., which had argued that the California Public Utilities Commission unlawfully changed accounting rules solely to extend the consumer rate freeze. Pacific Gas & Elec. Co. v. California PUC. P. 4.
Calif. High Court Rejects Claim That PUC Improperly Devised Bankruptcy Filing The California Supreme Court has dismissed a consumer group’s claim that the California Public Utilities Commission violated the state open-meeting law by preparing a reorganization plan in closed session and submitting the plan in a bankruptcy proceeding involving Pacific Gas & Electric Co. Foundation for Taxpayer and Consumer Rights v. California PUC. P. 6.
Power Supplier Urges 9th Cir. to Order FERC Hearing on PG&E Reorganization In a brief to the Ninth Circuit, the Northern California Power Agency asserts that FERC unlawfully approved Pacific Gas & Electric’s reorganization plan without providing reasonable notice and an opportunity for a hearing as required under the Federal Power Act. California ex rel. Lockyer v. FERC. P. 6.
Calif. Irrigation Districts Are Not ‘Sham Wholesalers,’ 9th Cir. Rules The Ninth Circuit has denied a petition for review in which Pacific Gas & Electric Co. and Southern California Edison Co. claimed that FERC unlawfully created a “sham wholesale transaction” by directing the utilities to provide interconnections for certain California irrigation districts, authorized under state law to distribute power. Pacific Gas & Elec. Co. v. FERC. P. 7.
Occupants Can Select Co-op over Municipal Utility to Provide Power, N.C. Ct. Rules The North Carolina Supreme Court has ruled that a veterinary hospital constructed adjacent to an older hospital building was not part of the same premises for purposes of the state Electric Act. Since the new building was separately metered, the owners could select a different electric supplier, the court said. City of New Bern v. Carteret-Crave n Elec. Membership Corp. P. 8.
‘Economic Loss’ Doctrine Bars Utility’s Tort Claim on Faulty Surge Protectors A federal district court has ruled that Delaware’s economic-loss doctrine barred a utility’s tort action against the supplier of faulty surge protectors. The utility’s remedies were limited to those provided under the Uniform Commercial Code, the court said. Delmarva Power & Light Co. v. Meter-Treater Inc. P. 9.
Dam Licenses Properly Denied for Noncompliance with Coastal Zone Act The Ninth Circuit has upheld FERC’s denial of three hydro power licenses based on a determination that the applications were not consistent with the Coastal Zone Management Act. Mountain Rhythm Resources v. FERC. P. 9.
FERC Erred in Failing to Direct Tax Refund, Gas Users Tell Supreme Court Industrial gas consumers have petitioned the U.S. Supreme Court to review FERC’s conclusion that it lacked jurisdiction to ensure that unlawful tax surcharges be refunded to all retail customers who originally paid them. Midwest Gas Users Ass’n v. FERC. P. 11.
