Accokeek, Mattawoman, Piscataway Creeks Community Council, Inc. v. Public Service Commission

150 A.3d 856, 451 Md. 1, 2016 Md. LEXIS 839
CourtCourt of Appeals of Maryland
DecidedDecember 16, 2016
Docket26/16
StatusPublished
Cited by8 cases

This text of 150 A.3d 856 (Accokeek, Mattawoman, Piscataway Creeks Community Council, Inc. v. Public Service Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Accokeek, Mattawoman, Piscataway Creeks Community Council, Inc. v. Public Service Commission, 150 A.3d 856, 451 Md. 1, 2016 Md. LEXIS 839 (Md. 2016).

Opinion

Wilner, J.

Dominion Cove Point LNG, LP (Dominion) owns and operates a liquefied natural gas (LNG) terminal near Cove Point in Calvert County. As initially constructed, the terminal received LNG from tanker ships, stored it, and, upon a customer’s need, vaporized it and shipped it in gas form through a pipeline that connects the terminal to a local distribution company. That operation is ongoing. The terminal and its operation are subject to approval and regulation by the Federal Energy Regulatory Commission (FERC). See 15 U.S.C. § 717b.

In April 2013, Dominion applied to FERC and the Maryland Public Service Commission (PSC) for authorization to expand the terminal into a “bi-directional” facility, so that it could both import and export LNG. Exporting would be a reverse process—Dominion would obtain the domestic product in gas form, liquefy it, and ship it abroad in its liquid form. PSC approval, through the grant of a Certificate of Public Convenience and Necessity (CPCN), was needed because, as part of the expansion Project, Dominion proposed to consti'uct a 130-megawatt electric generating station to provide the electricity necessary for the expanded operation, and, under Md. Code, Public Utility Article (PUA), §§ 7-207 and 7-208, a CPCN from PSC was required for the construction of that station. Petitioner, Accokeek, Mattawoman, Piscataway Creeks Community Council, Inc. (hereafter AMP), a consortium dedicated *5 to protecting local waterways, was allowed to intervene in the administrative proceeding in opposition to Dominion’s application.

After three days of hearings and consideration of several thousands of pages of testimony and documents, PSC entered an 83-page Order granting the CPCN, subject to approximately 200 Conditions included in a 64-page Appendix. Dissatisfied, AMP sought judicial review in the Circuit Court for Baltimore City, which affirmed the PSC Order. On AMP’s appeal, the Court of Special Appeals affirmed the Circuit Court judgment. Accokeek, Mattawoman & Piscataway v. PSC, 227 Md.App. 265,133 A.3d 1228 (2016).

We granted certiorari to consider three issues raised by AMP:

(1) whether two of the Conditions imposed by PSC in its grant of the CPCN (Conditions J-3 and J-4) constitute taxes or mandatory payments that PSC had no authority to impose;

(2) whether PSC’s (alleged) failure to identify the value it assigned to positive economic value in favor of the CPCN prevented AMP from effectively challenging the PSC decision; and

(3) whether PSC’s valuation of the economic benefit created by the generating station is not supported by substantial evidence in the record.

As did the two lower courts, we find no merit in these complaints and therefore shall affirm the judgment of the Court of Special Appeals.

BACKGROUND

The procedure to be followed by PSC in evaluating a CPCN application for construction of an electric generating station is set forth in PUA §§ 7-207(e) and (d). Those sections provide for notice to interested persons and a public hearing, and no one contends that those procedures were not followed in this case. Section 7-207(e) lists the factors that PSC must consider *6 in determining whether to grant a CPCN. In relevant part, they are:

(1) the recommendation of the governing body of the county in which the station is to be located; and
(2) the effect of the station on:
(A) the stability and reliability of the electric system;
(B) economics;
(C) esthetics;
(D) historic sites;
(E) aviation safety;
(F) air and water pollution; and
(G) availability of means for the timely disposal of waste produced by the generating station.

Evidence was presented on all of those factors, by Dominion, by the Maryland Power Plant Research Program (PPRP), a unit and coordinating body within the Department of Natural Resources, by the PSC Staff, by the Sierra Club, by AMP, and by others. AMP essentially argued that none of the considerations in § 7-207 favored the granting of a CPCN, including the assertion that the unanimous recommendation of the Calvert County Board of County Commissioners that the CPCN be granted was invalid and that, because the generating station would serve only the LNG operation at the terminal and not connect to the electric power grid 1 , it would have no public benefit that could offset the pollution that would occur from its fossil-fuel based generation.

PPRP included in its Report and testimony a substantial list of Conditions necessary, in its view, for the Project to comply with environmental requirements or to ameliorate negative economic impacts of the Project. It concluded that, with those Conditions, the generating station would comply with all applicable environmental requirements. The PSC Staff submitted a report dealing with the impact of the generating station on the *7 electric power grid. Subject to its list of Conditions, the Staff concluded that the station would not adversely affect the grid. Dominion accepted the Conditions proposed by PPRP and the PSC Staff.

One of the major problems with which the parties and PSC had to contend, particularly in attempting to estimate and evaluate the economic and environmental impacts of the Project, was that the generating station was needed, and was intended to be used, solely to support the export operation—to run the compressors necessary to liquefy the domestic gas, No part of the electricity to be generated was to connect with the grid or be sold to customers. Because of that, in some important respects it was difficult to estimate the impact of the generating station as a stand-alone entity, apart from the overall LNG Project. Both Dominion and PPRP took the position that the generating station was so intertwined with the overall Project that it was impossible to evaluate the impact of the generating station as a separate item, and they made little or no effort to do so. 2

Though lamenting the lack of evidence from Dominion and PPRP directed solely to the generating station, PSC recognized the problem. It noted in its Order “that the Generating Station and the larger liquefaction Project are integrally related” and that its task had been made more difficult “by the fact that [Dominion], and, to some extent, other parties, have provided testimony that addresses the Project as a whole and have not seriously attempted to isolate information that ap *8 plies uniquely to the Generating Station that we must review.” 3 It concluded, however, that:

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Cite This Page — Counsel Stack

Bluebook (online)
150 A.3d 856, 451 Md. 1, 2016 Md. LEXIS 839, Counsel Stack Legal Research, https://law.counselstack.com/opinion/accokeek-mattawoman-piscataway-creeks-community-council-inc-v-public-md-2016.