Greenwood Utilities Commission v. Schlesinger

515 F. Supp. 653, 1981 U.S. Dist. LEXIS 18476
CourtDistrict Court, M.D. Georgia
DecidedJune 5, 1981
Docket77-179-MAC
StatusPublished
Cited by3 cases

This text of 515 F. Supp. 653 (Greenwood Utilities Commission v. Schlesinger) is published on Counsel Stack Legal Research, covering District Court, M.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greenwood Utilities Commission v. Schlesinger, 515 F. Supp. 653, 1981 U.S. Dist. LEXIS 18476 (M.D. Ga. 1981).

Opinion

OWENS, Chief Judge:

This case is before the court on a motion for partial summary judgment. The plaintiff, Greenwood Utilities Commission, is a public agency of the City of Greenwood, Mississippi. It is engaged in the generation, transmission, and retail distribution of electric power and energy to its residents. The original defendants in this action were the Secretary of the United States Department of the Interior and the Administrator of the Southeastern Power Administration (SEPA). Subsequently, intervention was permitted pursuant to Rule 24(b) of the Federal Rules of Civil Procedure and the following were added as defendants: various power supply and power distribution cooperatives; the Water, Gas, and Light Commission of the City of Albany; the Georgia Power Company; the Georgia Municipal Association, Electric Cities of Georgia . Section, and the Cities of Acworth, Georgia, et al.; and the Municipal Electric Authority of Georgia (MEAG). The motion before the court was filed by defendant MEAG and adopted by the other defendants. For convenience, the court will refer only to defendants MEAG and SEPA.

The case pertains to events occurring over more than a five-year period and involves multiple parties and issues. Despite the apparent complexity, the basic nature of this dispute can be succinctly stated as follows: SEPA is responsible for distributing electric power from certain electric generating projects operated by the United States Army Corps of Engineers. In carrying out this responsibility it has developed a marketing system in which it provides power within a certain. geographic boundary. Plaintiff, located in northwest Mississippi, is outside of that boundary; nevertheless it wants SEPA to “wheel” power to it and claims that it is entitled to obtain this power. SEPA has refused and continues to refuse to sell any power to plaintiff.

Defendant MEAG filed its motion for partial summary judgment in this action pursuant to Rule 56 of the Federal Rules of Civil Procedure, claiming the existence of no genuine issue as to any material fact relating to the issues listed in the motion, and that as a matter of law defendant is entitled to a favorable judgment on each issue. These issues which MEAG claims are appropriate for summary disposition in favor of the defendants are: (1) Whether Section 5 of the Flood Control Act of 1944, 16 U.S.C.A. § 825s (“Section 5”), prohibits SEPA from allocating capacity and energy to numerous entities in a defined geographic marketing area which does not include Greenwood’s geographic location; (2) Whether Section 5 of the Flood Control Act or the Due Process Clause of the Fifth Amendment to the United States Constitution prohibit SEPA from selling capacity and energy to certain preference entities unless SEPA also sells to Greenwood; (3) Whether SEPA was legally required by the Administrative Procedure Act to develop rules or regulations relating to the development of a federal power marketing plan; (4) Whether Due Process required SEPA to afford Greenwood more procedural process than was afforded to Greenwood; (5) Whether the record developed by SEPA in formulating its federal power marketing plan is inadequate, assuming that SEPA was required to develop such a record; and (6) Whether SEPA was required by Section 102 of the National Environmental Policy Act, 42 U.S.C.A. § 4332 (1977), to prepare an environmental impact statement in connection with its development of a federal power marketing plan.

FACTS

There is no genuine dispute as to the following material facts. Plaintiff Greenwood Utilities Commission, City of Greenwood, Mississippi (“Greenwood”) is located in northwest Mississippi and in FPC Power Supply Area 25. 1 Plaintiff is not and has *656 never been located in any of SEPA’s marketing areas and has never received an allocation of power from SEPA.

Defendant SEPA is a federal power marketing agency. It neither owns nor controls any transmission lines and therefore is unable to move the output of the projects to its customers without obtaining the use of transmission lines owned by others. SEPA also lacks the capability to adequately “firm up” the output of its hydroelectric projects with thermal generating units. 2 Demand of potential customers for SEPA-marketed power far exceeds the supply.

During the mid-1970’s, SEPA found it necessary to develop a federal power marketing plan for the disposition of the output of three new hydroelectric projects, 3 known as the Carters, Jones Bluff, and West Point projects, located in the States of Georgia and Alabama. These projects are a part of SEPA’s “Georgia-Alabama System.” This system is composed of six other hydroelectric, projects in addition to these three. Because the output of the six other projects was already committed when the Carters, Jones Bluff, and West Point projects came on line in 1975-76, it was necessary to devise this separate plan for marketing the output of the three projects.

Operating in the general geographic region in which the projects are located are four operating companies of the Southern System. 4 The four companies operate as a single integrated generation and transmission system. Their transmission system is the only one covering the entire geographic marketing area adopted by SEPA for the output of the Carters, Jones Bluff, and West Point projects. In addition, they possess thermal generating units capable of firming-up the output of SEPA’s three projects. All preference entities 5 located in the service areas of the four Southern Companies were interconnected with the Southern Companies’ transmission network.

SEPA ultimately determined to market the output of the three projects in the Service areas of the Southern Companies, which generally comprise FPC Power Supply Areas 22 and 23. 6 After selecting this geographic marketing area, SEPA offered to sell power to every preference entity located in the defined area and connected to one of the four Southern Companies. There are approximately 125 preference entities located within the Southern Companies’ service areas, all of which receive allocations from the three projects under SEPA’s marketing plan.

On November 19, 1975, Mr. Charles Mathews, Manager of Greenwood, mailed a brief letter to SEPA expressing an interest in obtaining an allocation of power from SEPA. On that same date, Mr. Mathews mailed another letter to the Assistant Secretary of Energy and Minerals of the Department of the Interior, with a copy also sent to the Administrator of SEPA. This letter also expressed Greenwood’s interest in receiving power from SEPA.

By letter dated December 18, 1975, SEPA’s Chief of Division of Power Sales replied to Mr. Mathews stating that SEPA was unable to offer power to Greenwood.

The Department of Interior also responded to Mr. Mathews by letter dated January

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Bluebook (online)
515 F. Supp. 653, 1981 U.S. Dist. LEXIS 18476, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenwood-utilities-commission-v-schlesinger-gamd-1981.