States take US FERC to court over interconnection rule
Washington (Platts)--4May2004
State regulators officially filed a court appeal of the US Federal Energy Regulatory Commission's recent generator interconnection rulemaking, claiming that, in the final rule, FERC overstepped its jurisdiction. The appeal, filed at the US Court of Appeals for the District of Columbia Circuit, was submitted late Monday by the National Association of Regulatory Utility Commissioners, the trade association representing state public service commissions. States joining NARUC in the appeal are California, Kentucky, Washington, South Carolina and North Carolina. According to NARUC, the Federal Power Act explicitly delegated authority over all distribution facilities to the states. Courts, NARUC said in its rehearing petition last year, have constantly affirmed this finding. FERC, in its interconnection rule, said it would assert authority over a distribution facility when one is used by a wholesale customer engaged in interstate commerce. Also, the interconnection rule blurs what had been a "bright-line" test FERC used to delineate between transmission and distribution facilities, NARUC said. "Petitioners seek an order and judgment that those specific aspects of the FERC order are in excess of the commission's statutory jurisdiction, authority, or limitations, or short of statutory right ..., and are arbitrary, capricious, an abuse of discretion and otherwise contrary to law," the petition said. The rule was issued last summer, and the commission upheld its findings in its order on rehearing March 5 (RM02-1).
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