Citizens Action Coalition of Indiana, Inc. v. PSI Energy, Inc.

894 N.E.2d 1055, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20266, 2008 Ind. App. LEXIS 2266, 2008 WL 4594118
CourtIndiana Court of Appeals
DecidedOctober 16, 2008
Docket93A02-0712-EX-1093
StatusPublished
Cited by5 cases

This text of 894 N.E.2d 1055 (Citizens Action Coalition of Indiana, Inc. v. PSI Energy, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Citizens Action Coalition of Indiana, Inc. v. PSI Energy, Inc., 894 N.E.2d 1055, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20266, 2008 Ind. App. LEXIS 2266, 2008 WL 4594118 (Ind. Ct. App. 2008).

Opinion

OPINION

BROWN, Judge.

Citizens Action Coalition of Indiana, Inc., Save the Valley, Inc., Valley Watch, Inc., and Sierra Club, Inc., (collectively, “Appellants”) appeal the Indiana Utility Regulatory Commission’s grant of a peti *1059 tion filed by PSI Energy, Inc., d/b/a Duke Energy Indiana, Inc. (“Duke”) for the construction of a powerplant. 1 Appellants raise four issues, which we revise and restate as:

I. Whether the Commission erred by denying Appellants’ request to reopen the record;
II. Whether the applicable statutes allow Duke to recover costs while the facility is under construction;
III. Whether the Commission adequately considered all known costs and estimates of future costs of the plant; and
IV. Whether Ind.Code §§ 8-1-8.5, Ind.Code §§ 8-1-8.7, and Ind. Code §§ 8-1-8.8 violate the Commerce Clause because the statutes express a preference for Indiana coal.

We affirm.

The relevant facts follow. On September 7, 2006, Duke and Southern Indiana Gas and Electric Company, d/b/a Vectren Energy Delivery of Indiana, Inc. (“Vec-tren”) filed a petition with the Commission seeking approval to build an integrated gasification combined cycle (“IGCC”) electric powerplant at Duke’s Edwards-port facility in Knox County, Indiana. Duke operated a coal and oil-fired generating station at the Edwardsport facility that had a total of 160 megawatt capacity, was placed in service between 1944 and 1951, and was nearing the end of its useful economic life. The proposed IGCC facility would have a 630 megawatt capacity. An IGCC generating facility converts coal into synthesis gas, which is used to fuel highly efficient combustion turbines. The IGCC technology is a cleaner and more efficient way of producing electricity than conventional coal-fired plants.

Before constructing an electric generating facility in Indiana, public utilities must obtain a Certificate of Public Convenience and Necessity under Ind.Code §§ 8-1-8.5. Additionally, under Ind.Code §§ 8-1-8.7, a public utility may not use clean coal technology, such as IGCC, at a new or existing facility without obtaining a Certificate of Public Convenience and Necessity. Duke’s petition also sought, in part, to obtain certain financial incentives authorized under Ind.Code §§ 8-1-8.8 for a clean coal and energy project, 2 such as “[t]he *1060 timely recovery of costs incurred during construction and operation” of the project. Ind.Code § 8-l-8.8-ll(a)(l).

Pursuant to statute, the Indiana Office of Utility Consumer Counselor participated in the proceedings before the Commission. See Ind.Code § § 8 — 1—1.1. Additionally, the Indiana Industrial Group, Nucor Steel, the Citizens Action Coalition of Indiana, Inc., Save the Valley, Inc., Valley Watch, Inc., the Sierra Club, the Indiana Wildlife Federation, the Clean Air Task Force, and the Indiana Coal Council intervened in the action.

Extensive amounts of evidence were presented to the Commission, and an evi-dentiary hearing was held in June 2007. After the evidentiary hearing, Vectren, which had sought approval for up to 20% ownership in the facility, withdrew its petition, and the proceedings continued as to Duke’s petition with Duke to have 100% ownership of the proposed facility. A public hearing was held in Bloomington, Indiana, on August 29, 2007. On November 16, 2007, the Commission held an executive session to deliberate on Duke’s petition. The Commission then issued a public notice that it would meet on November 20, 2007, to discuss or vote on Duke’s petition.

On November 19, 2007, Appellants filed a motion to reopen the record, alleging that: (1) Duke had issued two requests for proposals for up to 1000 MW of new capacity, which would render the Edwardsport facility “unnecessary in the near term;” (2) continuing increases in construction costs made Duke’s cost information “stale, out-of-date, and unreliable;” (3) Vectren’s withdrawal from the project made Duke’s “baseline analysis ... inaccurate and inappropriate;” (4) recent changes to congressional legislation and EPA regulations had “affected the risk profile of utilities with significant carbon emissions;” and (5) Duke had filed a petition to increase “demand-side management” investments. Appellants’ Appendix at 143-144.

On November 20, 2007, the Commission issued a sixty-three page order granting Duke’s petition for Certificates of Public Convenience and Necessity for the Ed-wardsport IGCC facility. The Commission also ordered that Duke was entitled to “timely recovery of its construction, operating and maintenance costs incurred in connection with the IGCC Project....” Id. at 82. Additionally, the Commission denied Appellants’ request to reopen the record. Specifically, the Commission found that it had reviewed the motion and found that it did not “satisfy the criteria set forth in 170 IAC 1-1.1-22” for reopening the proceedings. Id. at 24.

Appellants now challenge the Commission’s grant of Duke’s petition. This court’s review of the Commission’s decision is two-tiered. See Ind.Code § 8-1-3-1 (providing for judicial review of IURC decisions). “We first determine whether specific findings exist as to all factual determinations material to the ultimate conclusions, and we inquire if substantial evidence exists within the record as a whole to support the [Commission’s] *1061 basic findings of fact.” Ind. Office of Util. Consumer Counselor v. Lincoln Util., Inc., 784 N.E.2d 1072, 1074 (Ind.Ct.App.2003). In determining whether the evidence supports the Commission’s decision, we neither reweigh the evidence nor substitute our judgment for that of the Commission. Id. We set aside the Commission’s findings of fact only when a review of the entire record clearly indicates that its decision lacks a reasonably sound basis of eviden-tiary support. Id. Additionally, we determine whether the Commission’s order is contrary to law, that is, whether the order is the result of considering or failing to consider some factor or element that improperly influenced the final decision. Id. at 1074-1075.

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894 N.E.2d 1055, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20266, 2008 Ind. App. LEXIS 2266, 2008 WL 4594118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citizens-action-coalition-of-indiana-inc-v-psi-energy-inc-indctapp-2008.