Central Montana Electric Power Cooperative, Inc. Upper Missouri G & T Electric Cooperative, Inc., Montana Power Company, Petitioner-Intervenor v. Administrator of the Bonneville Power Administration, Central Montana Electric Power Cooperative, Inc. Upper Missouri G & T Electric Cooperative, Inc., Montana Power Company, Intervenor v. Administrator of the Bonneville Power Administration

840 F.2d 1472
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 1, 1988
Docket87-7080
StatusPublished

This text of 840 F.2d 1472 (Central Montana Electric Power Cooperative, Inc. Upper Missouri G & T Electric Cooperative, Inc., Montana Power Company, Petitioner-Intervenor v. Administrator of the Bonneville Power Administration, Central Montana Electric Power Cooperative, Inc. Upper Missouri G & T Electric Cooperative, Inc., Montana Power Company, Intervenor v. Administrator of the Bonneville Power Administration) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Montana Electric Power Cooperative, Inc. Upper Missouri G & T Electric Cooperative, Inc., Montana Power Company, Petitioner-Intervenor v. Administrator of the Bonneville Power Administration, Central Montana Electric Power Cooperative, Inc. Upper Missouri G & T Electric Cooperative, Inc., Montana Power Company, Intervenor v. Administrator of the Bonneville Power Administration, 840 F.2d 1472 (9th Cir. 1988).

Opinion

840 F.2d 1472

CENTRAL MONTANA ELECTRIC POWER COOPERATIVE, INC.; Upper
Missouri G & T Electric Cooperative, Inc., Petitioners,
Montana Power Company, Petitioner-Intervenor,
v.
ADMINISTRATOR OF the BONNEVILLE POWER ADMINISTRATION, Respondent.
CENTRAL MONTANA ELECTRIC POWER COOPERATIVE, INC.; Upper
Missouri G & T Electric Cooperative, Inc.,
Plaintiffs-Appellants,
Montana Power Company, Intervenor,
v.
ADMINISTRATOR OF the BONNEVILLE POWER ADMINISTRATION,
Defendant-Appellee.

Nos. 86-7602, 87-7080 and 87-3624.

United States Court of Appeals,
Ninth Circuit.

Argued and Submitted Sept. 11, 1987.
Decided March 1, 1988.

Richmond F. Allan, Washington, D.C., for petitioners Central Montana Elec. Power Co-op., et al.

Daniel O. Flanagan, Butte, Mont., for petitioner-intervenor Montana Power Co.

L. Randall Weisberg, Portland, Or., for respondent BPA.

Appeal from a Decision of the Bonneville Power Administration.

Appeal from the United States District Court for the District of Montana.

Before CANBY* and BEEZER, Circuit Judges, and GRAY,** District Judge.

BEEZER, Circuit Judge:

Central Montana Electric Power Cooperative and Upper Missouri G & T Electric Cooperative (the Cooperatives) challenge the decision by the Administrator of the Bonneville Power Administration (BPA) to deny its request for an allocation of electricity produced at the Libby Dam and Reservoir (Libby). We conclude that the action is justiciable for review, original jurisdiction lies with this Court, and that the controlling statutes set forth no Montana preference for Libby power.

FACTS

Libby is a federal hydroelectric project located in western Montana. The Administrator of the BPA is the federal marketing agent for all electric power produced by the United States government in the Pacific Northwest, which includes energy generated at Libby. In May 1986 the Cooperatives, on behalf of their member cooperatives serving consumers in eastern Montana, applied to the Administrator to purchase power from the Libby project under an asserted "Montana reservation." The BPA denied the requests, reasoning that it had no authority to provide Montana users with a preference to power from Libby because Congress had not established a Montana reservation for Libby power.

The Cooperatives simultaneously sought judicial review of the BPA's decision in this Court and in the District Court of Montana. The Cooperatives petitioned for a declaration that the electric power produced at Libby is reserved by law primarily for use in Montana and that they qualified as preference customers. The district court, 656 F.Supp. 781, concluded that the court of appeals had original jurisdiction over the controversy under section 9(e)(5) of the Pacific Northwest Electric Power Planning and Conservation Act (Northwest Power Planning Act), 16 U.S.C. Sec. 839f(e)(5), and transferred the action to this Court. The district court reasoned that Congress intended that BPA decisions regarding allocation and marketing of power from Libby were to be governed by the provisions of the Northwest Power Planning Act. The Cooperatives subsequently appealed the transfer order. The three dockets generated by the case were consolidated for briefing.

* The Administrator contends that we should decline jurisdiction because the issue presented is not ripe for adjudication as envisioned in the case or controversy requirement of Article III of the Constitution. The Administrator argues that there is nothing upon which the Cooperatives' asserted preference may operate. Any power preference would operate only as a "tie-breaker" among competing applicants for a limited supply of federally marketed power that is actually available for distribution. An applicant holding a recognized power preference cannot compel the power marketing agent to breach pre-existing contracts with non-preference purchasers. See City of Anaheim v. Duncan, 658 F.2d 1326, 1330-31 (9th Cir.1981). Because of the amount of power committed for sale under existing long-term contracts, the Administrator maintains, there will be no available power for allocation under an asserted Montana preference until expiration of the present contracts in 2001.

Jurisdiction to award the declaratory relief that the Cooperatives seek exists only in "a case of actual controversy." 28 U.S.C. Sec. 2201. A case is considered ripe for review when all "the essential facts establishing the right to declaratory relief have already occurred." Wickland Oil Terminals v. Asarco, Inc., 792 F.2d 887, 893 (9th Cir.1986). The question we must address is "whether the facts alleged, under all the circumstances, show that there is a substantial controversy, between parties having adverse legal interests, of sufficient immediacy and reality to warrant the issuance of a declaratory judgment." Maryland Casualty Co. v. Pacific Coal & Oil Co., 312 U.S. 270, 273, 61 S.Ct. 510, 512, 85 L.Ed. 826 (1941); see also National Basketball Ass'n v. SDC Basketball Club, Inc., 815 F.2d 562, 565 (9th Cir.), cert. dismissed, --- U.S. ----, 108 S.Ct. 362, 98 L.Ed.2d 386 (1987). As we have noted, "[t]he issue is not whether the requested declaratory relief is hypothetical. Rather, the issue is whether the case presents a sufficiently concrete case and controversy upon which relief properly may be fashioned." National Basketball Ass'n, 815 F.2d at 566 n. 2.

The administrative record before us reveals that the BPA did not base its final determination of the Cooperatives' request on impossibility because of existing contracts. The BPA instead took the position that a geographic reservation for Montana was established by Congress with respect to the Hungry Horse project but not for the Libby project. As a result of the agency's statutory interpretation, the Administrator concluded that the BPA had no authority to provide users in Montana with a geographic preference to power from Libby.

What is involved between the parties is not an abstract question based upon the possibility of a factual situation that may never develop. The contention is over the proper construction of the controlling statutes. The declaratory relief sought by the Cooperatives is not so speculative as to render it non-justiciable. The Cooperatives allege that the Administrator's denial of their applications constitutes final agency action based exclusively on an erroneous construction of law, which deprives them of statutory rights. The Cooperatives seek, in essence, a declaration holding that the electric power produced by the Libby project is reserved by statute primarily for use in the State of Montana. The BPA has consistently been in direct conflict with the Cooperatives on the issue of a congressionally created geographic preference for Libby power, and has specifically denied their allocation requests based on its construction of the controlling statutes.

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