Dive Summary:
- By a 2-1 vote, the 9th U.S. Circuit Court of Appeals in San Francisco upheld Federal Energy Regulatory Commission (FERC) authority to determine “just and reasonable” prices with a goal of getting refunds from public utilities.
- The ruling was a defeat for federal and municipal government power sellers such as the Bonneville Power Administration and the city of Redding, neither of which are subject to FERC refund jurisdiction, but could face lawsuits regarding alleged overcharges.
- Pacific Gas & Electric, Edison International’s Southern California Edison, Sempra Energy’s San Diego Gas & Electric, and the state itself have since filed damages lawsuits to force power sellers to accept reduced rates, including those lowered by FERC.
From the article:
A divided federal appeals court, in a case tied to California's 2000-2001 electricity crisis, said a U.S. energy regulator has authority to retroactively determine prices to help it obtain refunds from entities it oversees, though it lacks broader authority to reset rates for all market participants.
By a 2-1 vote, the 9th U.S. Circuit Court of Appeals in San Francisco upheld Federal Energy Regulatory Commission authority to set "just and reasonable" prices in markets overseen by the California Independent System Operator and California Power Exchange, with a goal of getting refunds from public utilities. ...
