Federal Energy Regulatory Commission v. Mississippi

456 U.S. 742, 102 S. Ct. 2126, 72 L. Ed. 2d 532, 1982 U.S. LEXIS 38
CourtSupreme Court of the United States
DecidedSeptember 9, 1982
Docket80-1749
StatusPublished
Cited by445 cases

This text of 456 U.S. 742 (Federal Energy Regulatory Commission v. Mississippi) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Energy Regulatory Commission v. Mississippi, 456 U.S. 742, 102 S. Ct. 2126, 72 L. Ed. 2d 532, 1982 U.S. LEXIS 38 (1982).

Opinions

[745]*745Justice Blackmun

delivered the opinion of the Court.

In this case, appellees successfully challenged the constitutionality of Titles I and III, and of § 210 of Title II, of the Public Utility Regulatory Policies Act of 1978, Pub. L. 95-617, 92 Stat. 3117 (PURPA or Act). We conclude that appellees’ challenge lacks merit and we reverse the judgment below.

I

On November 9, 1978, President Carter signed PURPA into law.1 The Act was part of a package of legislation,2 approved the same day, designed to combat the nationwide energy crisis.

At the time, it was said that the generation of electricity consumed more than 25% of all energy resources used in the United States. S. Rep. No. 95-442, p. 7 (1977). Approximately one-third of the electricity in this country was generated through use of oil and natural gas, and electricity generation was one of the fastest growing segments of the Nation’s economy. S. Rep. No. 95-361, p. 32 (1977). In part because of their reliance on oil and gas, electricity utilities were plagued with increasing costs and decreasing efficiency in the use of their generating capacities; each of these [746]*746factors had an adverse effect on rates to consumers and on the economy as a whole. S. Rep. No. 95-442, at 9. Congress accordingly determined that conservation by electricity utilities of oil and natural gas was essential to the success of any effort to lessen the country’s dependence on foreign oil, to avoid a repetition of the shortage of natural gas that had been experienced in 1977, and to control consumer costs.

A

Titles I and III

PURPA’s Titles I and III, which relate to regulatory policies for electricity and gas utilities, respectively, are administered (with minor exceptions) by the Secretary of Energy. These provisions are designed to encourage the adoption of certain retail regulatory practices. The Titles share three goals: (1) to encourage “conservation of energy supplied by . . . utilities”; (2) to encourage “the optimization of the efficiency of use of facilities and resources” by utilities; and (3) to encourage “equitable rates to . . . consumers.” §§ 101 and 301, 92 Stat. 3120 and 3149, 16 U. S. C. § 2611 (1976 ed., Supp. IV), 15 U. S. C. § 3201 (1976 ed., Supp. IV).3 To achieve these goals, Titles I and III direct state Utility regulatory commissions and nonregulated utilities to “consider” the adoption and implementation of specific “rate design” and regulatory standards.

Section 111(d) of the Act, 16 U. S. C. § 2621(d), requires each state regulatory authority and nonregulated utility to consider the use of six different approaches to structuring rates: (1) promulgation, for each class of electricity consumers, of rates that, “to the maximum extent practicable,” would “reflect the costs of . . . service to such class”; (2) [747]*747elimination of declining block rates;4 (3) adoption of time-of-day rates;5 (4) promulgation of seasonal rates;6 (5) adoption of interruptible rates;7 and (6) use of load management techniques.8 The Act directed each state authority and non-regulated utility to consider these factors not later than two years after PURPA’s enactment, that is, by November 8, 1980, and provided that the authority or utility by November 8, 1981, was to have made a decision whether to adopt the standards. § 2622(b). The statute does not provide penalties for failure to meet these deadlines; the state authority or nonregulated utility is merely directed to consider the standards at the first rate proceeding initiated by the authority after November 9, 1980. § 2622(c).

Section 113 of PURPA, 16 U. S. C. §2623, requires each state regulatory authority and nonregulated utility to consider the adoption of a second set of standards relating to the [748]*748terms and conditions of electricity service: (1) prohibition of master-metering in new buildings;9 (2) restrictions on the use of automatic adjustment clauses;10 (3) disclosure to consumers of information regarding rate schedules; (4) promulgation of procedural requirements relating to termination of service; and (5) prohibition of the recovery of advertising costs from consumers. Similarly, § 303, 15 U. S. C. §3203, requires consideration of the last two standards — procedures for termination of service and the nonrecovery of advertising costs — for natural gas utilities. A decision as to the standards contained in §§113 and 303 was to have been made by November 1980, although, again, no penalty was provided by the statute for failure to meet the deadline.

Finally, § 114 of the Act, 16 U. S. C. §2624, directs each state authority and nonregulated utility to consider promulgation of “lifeline rates” — that is, lower rates for service that meets the essential needs of residential consumers — if such rates have not been adopted by November 1980.

Titles I and III also prescribe certain procedures to be followed by the state regulatory authority and the nonregulated utility when considering the proposed standards. Each standard is to be examined at a public hearing after notice, and a written statement of reasons must be made available to the public if the standards are not adopted. 16 U. S. C. §§ 2621(b) and (c)(2), and §§ 2623(a) and (c); 15 U. S. C. §§ 3203(a) and (c). “Any person” may bring an action in state court to enforce the obligation to hold a hearing and [749]*749make determinations on the PURPA standards. 16 U. S. C. § 2633(c)(1); 15 U. S. C. § 3207(b)(1).

The Secretary of Energy, any affected utility, and any consumer served by an affected utility is given the right to intervene and participate in any rate-related proceeding considering the Title I standards. 16 U. S. C. § 2631(a). Under Title III, the Secretary alone has the right to intervene. 15 U. S. C. § 3205. Any person (including the Secretary) who intervenes or otherwise participates in the proceeding may obtain review in state court of any administrative determination concerning the Title I standards, 16 U. S. C. § 2633

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Bluebook (online)
456 U.S. 742, 102 S. Ct. 2126, 72 L. Ed. 2d 532, 1982 U.S. LEXIS 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-energy-regulatory-commission-v-mississippi-scotus-1982.