North Alabama Electric Cooperative v. Tennessee Valley Authority

862 F. Supp. 2d 1291, 2012 U.S. Dist. LEXIS 73834
CourtDistrict Court, N.D. Alabama
DecidedMay 29, 2012
DocketCivil Action No. 10-S-3252-NE
StatusPublished
Cited by2 cases

This text of 862 F. Supp. 2d 1291 (North Alabama Electric Cooperative v. Tennessee Valley Authority) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North Alabama Electric Cooperative v. Tennessee Valley Authority, 862 F. Supp. 2d 1291, 2012 U.S. Dist. LEXIS 73834 (N.D. Ala. 2012).

Opinion

MEMORANDUM OPINION AND ORDER

SMITH, District Judge.

Plaintiff, North Alabama Electric Cooperative, commenced this action against defendant, Tennessee Valley Authority, alleging breach of contract and promissory fraud.1 Defendant moved for summary judgment on both claims.2 Plaintiff moved to strike a portion of defendant’s evidentiary submission.3 Upon consideration of the motions, briefs, and evidentiary submissions, the court concludes that the motion for summary judgment is due to be granted, and the motion to strike is due to be denied as moot.

I. LEGAL STANDARD

Federal Rule of Civil Procedure 56 provides that summary judgment “should be rendered if the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c).4 In other words, summary judgment is proper “after adequate time for discovery and upon motion, against a party who fails to make a showing sufficient to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial.” Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). “A genuine issue of material fact ‘exists only if sufficient evidence is presented favoring the nonmoving party for a jury to return a verdict for that party.’ ” Farley v. Nationwide Mut. Ins. Co., 197 F.3d 1322, 1336 (11th Cir.1999) (quoting Stewart v. Happy Herman’s Cheshire Bridge, Inc., 117 F.3d 1278, 1284-85 (11th Cir.1997)).

“In making this determination, the court must review all evidence and make all reasonable inferences in favor of the party opposing summary judgment.” Chapman v. AI Transport, 229 F.3d 1012, 1023 (11th Cir.2000) (en banc) (quoting Haves v. City of Miami, 52 F.3d 918, 921 (11th Cir. 1995)). “[A]n inference is not reasonable if it is only a guess or a possibility, for such an inference is not based on the evidence, but is pure conjecture and speculation.” Daniels v. Twin Oaks Nursing Home, 692 F.2d 1321, 1324 (11th Cir.1983). Moreover,

[t]he mere existence of some factual dispute will not defeat summary judgment unless that factual dispute is material to an issue affecting the outcome of the case. The relevant rules of substantive law dictate the materiality of a disputed fact. A genuine issue of material fact does not exist unless there is sufficient evidence favoring the nonmoving party for a reasonable jury to return a verdict in its favor.

Chapman, 229 F.3d at 1023 (quoting Haves, 52 F.3d at 921); see also Anderson [1294]*1294v. Liberty Lobby, Inc., 477 U.S. 242, 251-52, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986) (asking “whether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law”).

II. BACKGROUND

A. The Parties

Defendant, Tennessee Valley Authority (“TVA”), is a corporate agency and instrumentality of the United States. See 16 U.S.C. §§ 831-831ee. TVA maintains and operates one of the nation’s largest electrical power systems as part of its statutory mission for the development of the resources and economy of the Tennessee Valley region.5 TVA sells the power it generates to local power distributors, which in turn provide power to homes and businesses.6 There are 155 such distributors in the TVA region.7 The five largest distributors service the metropolitan areas of Huntsville, Alabama, and four Tennessee cities: Chattanooga, Knoxville, Nashville, and Memphis.8 Those so-called “Big Five” distributors have the greatest impact on the policies of the Tennessee Valley Public Power Association (“TVPPA”), a consortium of all of the distributors.9

The plaintiff, North Alabama Electrical Cooperative (“NAEC”), is one of the regional power distributors associated with TVA.10 As a cooperative, NAEC is owned by its members: i.e., the people and businesses to whom or which it sells electricity.11 NAEC distributes power to those portions of Jackson and Marshall Counties, Alabama, that lie north of the Tennessee River.12 NAEC’s service area is primarily rural, and characterized by mountainous, rugged topography.13 Over the course of their 70-year relationship, TVA and NAEC have principally engaged in written contracts, but have also entered into several verbal agreements for the provision of services and equipment.14

B. The Department of Energy Grant

In February of 2009, shortly after the advent of the Obama Administration, Congress enacted the American Recovery and Reinvestment Act, Pub. L. No. 111-5, 123 Stat. 115 (Feb. 17, 2009). Pursuant to that act, the Department of Energy (“DOE”) announced the “Smart Grid Investment Grant” program (“SGIG”). Through that program, DOE offered to match the cost, up to $200 million, of projects designed to implement “smart” electric grids.15 A “smart” grid is a system that uses electric meters that can remotely transmit power-consumption data to the power distribu[1295]*1295tor.16 The use of a smart grid can help reduce total electricity usage and costs by providing the power distributor with real-time usage statistics, and providing the end user with information about the benefits of using power at low-demand times of day.17

1. NAEC and SGIG

Prior to the announcement of the SGIG, NAEC had been using human meter readers to physically inspect the meter at each power endpoint.18 However, NAEC was beginning to explore other options for data collection.19 The terrain of the area serviced by NAEC eliminated the prospect of using certain smart grid technologies.20 When SGIG was announced, NAEC viewed it as an opportunity to gain funding for a smart grid.21 As a rural distributor relying on physical meter inspection, NAEC viewed itself as an ideal candidate for the SGIG program.22

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Cite This Page — Counsel Stack

Bluebook (online)
862 F. Supp. 2d 1291, 2012 U.S. Dist. LEXIS 73834, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-alabama-electric-cooperative-v-tennessee-valley-authority-alnd-2012.