Indiana Gas Company, Inc. and Southern Indiana Gas and Electric Company v. Indiana Finance Authority and Indiana Gasification, LLC
977 N.E.2d 981
| Ind. Ct. App. | 2012Background
- IGA and IG entered a 30-year SNG purchase contract with the IFA; IFA to buy up to 38 million MMBtu annually of SNG produced by IG.
- Contract includes a $100 million guaranteed savings for retail end use customers and a $150 million Consumer Protection Reserve Account to shield ratepayers.
- SNG Act requires a final purchase contract with a guaranteed savings provision and allows UMAs; the OUCC participated for ratepayers.
- Commission approved the Contract on November 22, 2011 but did not resolve the meaning of “retail end use customer,” directing potential further proceedings.
- Industrial Group (industrial transportation customers) and Utilities (Vectren and others) appealed, raising issues of finality, savings guarantee, and statutory definition.
- Indiana Supreme Court declined to uphold the Commission’s approval as to the contested definition and reversed the order, holding the contract’s retail end use customer definition deviated from the statute and was not authorized to include transportation customers.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Contract’s retail end use customer definition deviates from the SNG Act | Industrial Group argues deviation violates the statute | Utilities contend issue is contractual interpretation and not jurisdictional | Contract definition deviates; reversed on that point |
| Whether the Commission exceeded its jurisdiction approving the Contract | Utilities contend finality and guaranteed savings not met | IG/IFA argue act permits contract approval independent of UMAs | Commission did not exceed jurisdiction on the finality/savings issue |
| Whether the Industrial Group has standing to appeal | Industrial Group demonstrates direct injury as transportation customers | IGA argues ad hoc membership undermines standing | Industrial Group has standing to appeal |
Key Cases Cited
- U.S. Steel Corp. v. Northern Ind. Pub. Serv. Co., 951 N.E.2d 542 (Ind. Ct. App. 2011) (agency jurisdiction reviewed de novo when contrary to law)
- Planned Parenthood of Ind. v. Wolfe, 735 N.E.2d 1187 (Ind. Ct. App. 2000) (statutory interpretation governs agency decisions)
- Thatcher v. City of Kokomo, 962 N.E.2d 1224 (Ind. 2012) (plain language controls when Legislature spoke clearly)
- Alcoa Power Generating, Inc. v. Fed. Energy Reg. Com’n, 643 F.3d 963 (D.C. Cir. 2011) (ripeness and investment certainty in regulatory contexts)
- Ernst & Young v. Depositors Economic Prot. Corp., 45 F.3d 530 (1st Cir. 1995) (sliding scale approach to fitness and hardship in ripeness)
- United States Gypsum, Inc. v. Indiana Gas Co., Inc., 735 N.E.2d 790 (Ind. 2000) (industrial customer classifications and standing distinctions)