Illinois Landowners Alliance, NFP v. Illinois Commerce Comm'n
2016 IL App (3d) 150099
| Ill. App. Ct. | 2016Background
- Rock Island Clean Line, LLC (Rock Island), a transmission developer, applied to the Illinois Commerce Commission (ICC) for a certificate of public convenience and necessity (CPCN) under 220 ILCS 5/8-406 to construct and operate a 121-mile HVDC transmission line in Illinois from the Mississippi River to the Collins substation in Grundy County, connecting wind generation in the Midwest to the PJM grid.
- Rock Island described the project as a merchant transmission line: it had no Illinois transmission assets, no Illinois customers, planned to recover costs via market contracts and FERC-regulated arrangements (anchor tenants and an open-season for 25% capacity), and did not seek Illinois ratepayer funding or eminent-domain authority in the application.
- Multiple parties (Illinois Landowners Alliance, Illinois Farm Bureau/IAA, Commonwealth Edison/ComEd, Commission staff, and others) intervened; staff recommended conditions and expressed concern over financial uncertainty and potential future cost-shifting to Illinois ratepayers.
- The ICC found Rock Island met the statutory definition of a public utility and that the project would promote an effectively competitive market and granted the CPCN subject to financing conditions requiring proof of funding before construction on easements.
- Petitioners (ILA, IAA, and ComEd) sought rehearing, were denied, and appealed to the appellate court. The central legal dispute focused on whether Rock Island is a “public utility” under section 3-105 and whether the ICC therefore had authority to issue the CPCN.
Issues
| Issue | Petitioners' Argument | Rock Island/ICC's Argument | Held |
|---|---|---|---|
| Whether Rock Island is a "public utility" under 220 ILCS 5/3-105 | Rock Island is not a public utility because it does not own, control, operate, or manage transmission assets in Illinois and will not provide service for public use without nondiscrimination | ICC: public utility status need not preexist; an applicant may seek public utility status while applying for a CPCN; Rock Island’s proposed service to PJM markets and open-season capacity suffices | Held Rock Island is not a public utility: it has no Illinois assets and its capacity is mostly reserved for out-of-state anchor tenants, so it does not dedicate facilities to public use in Illinois |
| Whether the ICC had authority to grant the CPCN under §8-406 | Petitioners: because Rock Island is not a public utility, ICC lacked statutory authority to issue a CPCN under §8-406(b) | ICC: statutory scheme permits seeking CPCN while applying for public utility status; CPCN could be granted with conditions | Held ICC lacked authority to grant the CPCN because Rock Island did not meet the statutory public utility definition; the CPCN was reversed and remanded |
Key Cases Cited
- Mississippi River Fuel Corp. v. Illinois Commerce Comm’n, 1 Ill. 2d 509 (Ill. 1953) (defining public use and duties that distinguish a public utility)
- Peoples Energy Corp. v. Illinois Commerce Comm’n, 142 Ill. App. 3d 917 (Ill. App. 1986) (agency jurisdiction limited to powers conferred by statute)
- Citizens Utility Board v. Illinois Commerce Comm’n, 166 Ill. 2d 111 (Ill. 1995) (agency statutory interpretation reviewed de novo)
- Sheffler v. Commonwealth Edison Co., 399 Ill. App. 3d 51 (Ill. App. 2010) (Commission may not extend its jurisdiction beyond statute)
- Palmyra Telephone Co. v. Modesto Telephone Co., 336 Ill. 158 (Ill. 1929) (public use need not extend to whole public but must be non-discriminatory)
- Highland Dairy Farms Co. v. Helvetia Milk Condensing Co., 308 Ill. 294 (Ill. 1923) (private, selective service is not a public utility)
- Commonwealth Edison Co. v. Illinois Commerce Comm’n, 398 Ill. App. 3d 510 (Ill. App. 2009) (agency statutory interpretation not binding if statute is clear)
- Burlington Northern, Inc. v. Department of Revenue, 32 Ill. App. 3d 166 (Ill. App. 1975) (administrative interpretation cannot alter plain statutory language)