In re Application of Columbus S. Power Co.
129 Ohio St. 3d 271
| Ohio | 2011Background
- PUCO approved interim delta-revenue deferrals from AEP's Ormet arrangements; IEU intervened and appealed two orders; the interim arrangement spanned 2009-2010 and followed a prior Ormet agreement ending 2008; delta revenue is the gap between tariffed and discounted collections; IEU argued the rate increase was approved without review of reasonableness or lawfulness; the Court affirmed the orders, noting prejudice but rejecting reversible error.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether IEU showed prejudice from the interim delta revenue order | IEU shows concrete harm from higher current rates | Prejudice exists but not reversible error | IEU prejudiced but no reversible error on merits |
| Whether IEU demonstrated reversible error on the merits | Order was unreasonable and unlawful | No legal authority cited; insufficient theory | No reversible error; argument rejected |
| Whether the court should adjudicate the legality of the commission’s approach | Commissional approach violates lawfulness of rates | Presumption of reasonableness; arguments not raised before rehearing | Court does not decide legality; upholds presumption without reversing |
Key Cases Cited
- Util. Servs., Inc. v. Pub. Util. Comm., 124 Ohio St.3d 284 (2009-Ohio-6764) (rejects conclusory arguments lacking legal authority)
- In re Ormet Primary Aluminum Corp., 129 Ohio St.3d 9 (2011-Ohio-2377) (addressed similar reasonable-arrangement deferrals)
- In re Application of Columbus S. Power Co., 128 Ohio St.3d 512 (2011-Ohio-1788) (precedent on Kent issues; prior propositions resolved)
- Columbus v. Pub. Util. Comm., 170 Ohio St. 105 (1959) (presumption of reasonableness of orders)
- E. Ohio Gas Co. v. Pub. Util. Comm., 137 Ohio St. 225 (1940) (limits on judicial review of rate decisions)