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ARTICLE · 27 JUNE 2008

Supreme Court Docket Report - Decision Alert - June 26, 2008

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Under the Federal Power Act (FPA), the Federal Energy Regulatory Commission (FERC) has the power to invalidate wholesale electricity rates that are not “just and reasonable.” 16 U.S.C. § 824d(a).

United StatesLitigation, Mediation & Arbitration
David Gossett
David Gossett
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Originally published June 26, 2008

October Term

Keywords: Morgan Stanley Capital Group, Public Util. Dist., Federal Power Act, FPA, Federal Energy Regulatory Commission, FERC, regulated energy, Mobile-Sierra, wholesale electricity contracts

Today the Supreme Court issued a decision, described below, of interest to the business community.

Morgan Stanley Capital Group, Inc. v. Public Util. Dist. No. 1 Nos. 06-1457 & 06-1462, (previously discussed in the September 25, 2007 Docket Report).

Under the Federal Power Act (FPA), the Federal Energy Regulatory Commission (FERC) has the power to invalidate wholesale electricity rates that are not "just and reasonable." 16 U.S.C. § 824d(a). Under the judicially created Mobile-Sierra presumption, a contract for the sale and purchase of wholesale electricity is presumed to be "just and reasonable," unless the resultant electricity rates harm

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