Supreme Court Defines Broad Role of Mobile-Sierra-Protecting All Parties

The US Supreme Court has just ruled that a uniform standard of "just and reasonable" will be applied whenever any party challenges Federal Energy Regulatory Commission (FERC) approval of a rate schedule for the provision of generated electrical capacity. This landmark case, NRG Power Marketing LLC v. Maine Public Utilities Commission (NRG), revitalizes a doctrine from the 1950s that comprises limitations upon FERC authority, and thus the authors will preface their review with a few words about that law. FERC has the authority to regulate the interstate sale of electricity. All charges must be "just and reasonable." The commission may set aside any rate it deems unjust or unreasonable in the "public interest." Whether "public interest" standard apply only to a challenge by a contracting party or can it be applied to any party that opposes the rate was the precise question in NRG. After years of intense effort, FERC approved a comprehensive settlement that would have resolved this challenge.