Administrative-Power Transmission-Long-Term Rights-Allocation of Zero Rights

Plaintiff petitioned for review of FERC’s dismissal of plaintiff’s administrative complaint. Plaintiff supplied power to municipal electric utilities in several states. In October 2015, plaintiff joined Southwest Power Pool, a regional transmission organization that managed large parts of the interstate transmission grid. Southwest allocated long-term transmission rights, which could be used to protect against congestion charges on interstate transmission grids. Previously, FERC approved Southwest’s tariff, which established the procedure for awarding long-term transmission rights on an annual basis. Southwest began allocating rights months before plaintiff joined its market, and plaintiff had received no rights since. FERC dismissed plaintiff’s petition challenging the allocation of zero long-term rights as violating the Federal Power Act.  

Where the act did not entitle plaintiff to long-term transmission rights because it could not force transmission organizations to provide rights that would be infeasible due to the previous awarding of rights, Southwest’s tariff was not arbitrary or capricious for rolling over awarded long-term rights as long as they were not surrendered.  

Petition is denied. 

Missouri River Energy Services v. Federal Energy Regulatory Commission (MLW No. 84536/Case No. 24-3161 & 25-1058 – 12 pages) (U.S. Court of Appeals, 8th Circuit, Colloton, J.) Petition for review of an order of the Federal Energy Regulatory Commission. (Philip W. Mone, Washington, D.C. for petitioner; Randolph Lee Elliott, Washington, D.C. on the brief) (Carol J. Banta, Washington, D.C. for respondent)