Strategic Energy, LLC v. Illinois Commerce Commission

860 N.E.2d 361, 369 Ill. App. 3d 238, 307 Ill. Dec. 707, 2006 Ill. App. LEXIS 1107
CourtAppellate Court of Illinois
DecidedNovember 29, 2006
Docket2-05-0685 & 5-05-0465 cons. Rel
StatusPublished
Cited by8 cases

This text of 860 N.E.2d 361 (Strategic Energy, LLC v. Illinois Commerce Commission) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Strategic Energy, LLC v. Illinois Commerce Commission, 860 N.E.2d 361, 369 Ill. App. 3d 238, 307 Ill. Dec. 707, 2006 Ill. App. LEXIS 1107 (Ill. Ct. App. 2006).

Opinion

JUSTICE KAPALA

delivered the opinion of the court:

Petitioner, Strategic Energy, LLC (Strategic), appeals from an order of the Illinois Commerce Commission (Commission) granting Locals 15, 51, and 702 of the International Brotherhood of Electrical Workers (union) leave to intervene in Strategic’s application for a certificate of service authority to operate as an alternative retail electrical supplier (ARES). The union appeals from the Commission’s orders granting Strategic’s application and issuing a certificate of service authority. For the reasons that follow, we dismiss Strategic’s appeal, and on the union’s appeal, we reverse the Commission’s orders.

FACTS

1. Proceedings Before the Commission

Strategic, a Delaware corporation licensed to do business in IIlinois, is a supplier of retail electricity to nonresidential consumers. It is headquartered in Pittsburgh, Pennsylvania. The union represents union electrical utility workers. On December 29, 2004, Strategic filed an application for a certificate of service authority to operate as an ARES under section 16 — 115 of the Public Utilities Act (Act) (220 ILCS 5/16 — 115 (West 2004)) to provide retail electricity to Illinois’s nonresidential retail customers with annual electrical consumption greater than 15,000 kilowatt-hours (kWh) in the Commonwealth Edison (ComEd) and Illinois Power (IP) 1 service territories in the State of Illinois. Strategic is majority owned by Great Plains Energy, Incorporated, a regulated public utility holding company that also owns Kansas City Power and Light (KCP&L), which is an integrated, regulated electric utility that supplies electricity to customers in Missouri and Kansas. According to Strategic’s filings before the Commission, it does not purchase electricity from KCP&L. On January 6, 2005, Strategic published notice of its filing for a certificate of service authority in the newspaper officially designated by the state for this purpose.

An alternative retail electric supplier is:

“[EJvery person, cooperative, corporation, municipal corporation, company, association, joint stock company or association, firm, partnership, individual, or other entity, their lessees, trustees, or receivers appointed by any court whatsoever, that offers electric power or energy for sale, lease or in exchange for other value received to one or more retail customers, or that engages in the delivery or furnishing of electric power or energy to such retail customers, and shall include, without limitation, resellers, aggregators and power marketers ***.” 220 ILCS 5/16 — 102 (West 2004).

In order for the Commission to grant Strategic a certificate of service authority to operate as an ARES, it must make findings that Strategic has demonstrated that it meets the requirements of section 16— 115(d). 220 ILCS 5/16 — 115(d) (West 2004).

The union filed a petition to intervene on January 27, 2005. In its petition to intervene, the union argued its reasons for intervention as well as its reasons for opposing Strategic’s application. The next day, January 28, 2005, the administrative law judge (ALJ) filed his proposed order granting Strategic’s application, but with conditions. The order was silent with respect to the union’s petition to intervene. The order recited that briefs on exceptions were due February 2, 2005. See 83 Ill. Adm. Code §200.830 (1996) (any party may file exceptions to statements, findings of fact, or rulings of law made by the AU in the proposed order in a “brief on exceptions”). On that date, Strategic filed exceptions to the ALJ’s proposed order. Strategic also filed a verified objection and motion to strike the union’s petition to intervene. The union, although permitted to do so by the rules, did not file exceptions to the ALJ’s proposed order.

In a written order on February 7, 2005, the AU denied the union’s petition to intervene. In its review of the ALJ’s proposed order, on February 8, 2005, the Commission, in a written order, granted Strategic’s application in full, without the conditions proposed by the ALJ. The union’s petition to intervene was not before the Commission when it entered its February 8, 2005, order. Then on February 24, 2005, the union filed with the Commission an application for rehearing of the order granting Strategic’s application, and it also requested the Commission to review the ALJ’s denial of its petition to intervene. On March 9, 2005, the Commission granted both the union’s application for rehearing and its petition to intervene. The matter was referred back to the ALJ for rehearing of Strategic’s application, and on June 13, 2005, the ALJ entered a proposed order on rehearing in which he ordered that the Commission’s February 8, 2005, order granting Strategic’s application should remain in full force and effect. On July 13, 2005, the Commission entered its order on rehearing in which it reaffirmed its decision to allow Strategic’s application, and it declined to change its order allowing the union to intervene.

2. Proceedings in the Appellate Court

On July 14, 2005, Strategic filed in this court its petition for direct review (notice of appeal) from the Commission’s July 13 order. On appeal, Strategic challenges that part of the order that allowed the union to intervene. The union and the Commission filed motions to dismiss Strategic’s appeal on the basis that Strategic did not file an application for rehearing of the July 13 order and so did not exhaust its administrative remedies. Meanwhile, the union filed its timely appeal in the Fifth District of the Appellate Court on August 15, 2005. On September 21, 2005, before briefs were filed, this court denied the motions to dismiss Strategic’s appeal. The clerk of the Fifth District Appellate Court then transferred the union’s appeal to this court, and on November 16, 2005, this court consolidated the union’s appeal with Strategic’s appeal

ANALYSIS

1. Motions Taken With the Case

Before we entertain the merits of these appeals, we must dispose of several motions we ordered taken with the case.

A. Strategic’s Motion to Strike Portions of the Union’s and the Commission’s Briefs

Strategic moves to strike those portions of the union’s and the Commission’s briefs that argue that, because Strategic did not exhaust its administrative remedies, this court lacks jurisdiction over Strategic’s appeal. Strategic claims that this court finally disposed of that argument when we denied the motions to dismiss the appeal on September 21, 2005, and that this court may not revisit that order. Strategic is mistaken. The denial of a motion to dismiss an appeal is not final, and the question of our jurisdiction to hear a case may be revisited at any time before final disposition of the appeal. In re C.J., 325 Ill. App. 3d 502, 503-04 (2001). We address the argument that Strategic failed to exhaust its administrative remedies below in section ID of this opinion.

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Bluebook (online)
860 N.E.2d 361, 369 Ill. App. 3d 238, 307 Ill. Dec. 707, 2006 Ill. App. LEXIS 1107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/strategic-energy-llc-v-illinois-commerce-commission-illappct-2006.