Indiana Gas Company, Inc. and Southern Indiana Gas and Electric Company v. Indiana Finance Authority and Indiana Gasification, LLC
2013 Ind. LEXIS 985
| Ind. | 2013Background
- In 2011 the Indiana Finance Authority (IFA) contracted with Indiana Gasification, LLC to purchase substitute natural gas (SNG); the Indiana Utility Regulatory Commission (IURC) approved the purchase contract conditioned on statutory requirements (including guaranteed savings to retail end use customers (REUCs)).
- Several regulated utilities, an industrial group, and consumer groups challenged the IURC approval, arguing the contract’s definition of REUC improperly included industrial transportation customers.
- The Indiana Court of Appeals affirmed jurisdiction and that the IURC did not exceed authority generally, but reversed the IURC’s approval because the contract’s REUC definition deviated from the statutory definition.
- After the Court of Appeals decision, IFA and Indiana Gas executed an Amended Contract deleting the offending language so the REUC definition matched the statute; they asked this Court to treat the definitional issue as moot and affirm the IURC approval.
- This Court granted transfer (vacating the Court of Appeals reversal under Appellate Rule 58(A)), found the Amended Contract’s REUC definition compatible with the SNG Act, dismissed the definitional issue as moot, and summarily affirmed the Court of Appeals as to all other claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Contract’s REUC definition complied with the SNG Act | IFA/Indiana Gas: the Amended Contract removes the offending wording; issue now moot and definition complies | Utilities: original Court of Appeals finding voided the contract under its non-severability clause, so amendment cannot moot the issue | Amended Contract's definition matches statute; definitional challenge is moot and IURC approval stands |
| Whether the IURC exceeded statutory authority by approving the Contract | IFA/Indiana Gas: IURC acted within its authority to approve a contract meeting statutory requirements | Utilities/Intervenors: IURC exceeded authority by approving a definition inconsistent with statute | Court summarily affirmed that IURC approval (as amended) is within authority |
| Justiciability of the Utilities’ and Industrial Group’s claims | Appellants: claims are justiciable and reviewable | IFA/Indiana Gas: (did not contest justiciability) | Court of Appeals’ determination that claims were justiciable is summarily affirmed |
| Effect of non-severability clause (Section 15.2) after appellate reversal | Utilities: a judicial determination that a provision is invalid voids the entire contract, so amendment cannot revive it | IFA/Indiana Gas: transfer and vacation of the appellate reversal left parties free to amend under Section 15.5 | Transfer vacated reversal; Section 15.5 amendment cured the defect, so non-severability did not render contract void |
Key Cases Cited
- N. Ind. Pub. Serv. Co. v. United States Steel Corp., 907 N.E.2d 1012 (Ind. 2009) (explaining standard and deference for judicial review of IURC orders)
- McClain v. Review Bd. of Ind. Dept. of Workforce Dev., 693 N.E.2d 1314 (Ind. 1998) (describing appellate review standards for findings and mixed questions)
- Matter of Lawrance, 579 N.E.2d 32 (Ind. 1991) (mootness doctrine where controversy has been settled)
- Indiana Gas Co. v. Indiana Fin. Auth., 977 N.E.2d 981 (Ind. Ct. App. 2012) (Court of Appeals decision reversing IURC approval based on incompatible REUC definition)