Occidental Permian Ltd. v. Federal Energy Regulatory Commission
673 F.3d 1024
D.C. Cir.2012Background
- Tres Amigas sought negotiated rate authority for a New Mexico interconnection project designed to tie together three U.S. electric grids, enabling cross-grid power transfers.
- Tres Amigas is an interconnection facility, not a standalone transmission service provider with its own customers or preexisting network.
- FERC granted Tres Amigas negotiated rate authority in March 2010 over Occidental’s objections; rehearing was denied in September 2010.
- Occidental intervened, protested, and argued Tres Amigas failed Chinook criteria by having captive customers or monopoly power and bearing less than full project risk.
- The court first must determine standing before addressing merits; standing requires concrete, actual or imminent injury that is traceable to the agency action and redressable by the court.
- Occidental’s asserted injuries—costs to neighboring utilities, higher rates to Occidental’s subsidiaries, potential increased competition—were deemed speculative or not yet caused by the agency’s orders, and thus insufficient for standing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Occidental have standing to challenge FERC orders? | Occidental contends it has concrete, imminent injuries from future rate decisions and connections. | FERC and Tres Amigas argue the injuries are speculative and not yet caused by the orders. | No standing; petition dismissed for lack of injury in fact |
Key Cases Cited
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (U.S. 1992) (constitutional standing requires concrete injury)
- Public Util. Dist. No. 1 of Snohomish Cnty. v. FERC, 272 F.3d 607 (D.C. Cir. 2001) (irreducible minimum of standing)
- Commuter Rail Div. of Reg'l Transp. Auth. v. Surface Transp. Bd., 608 F.3d 24 (D.C. Cir. 2010) (injury must be traceable to agency action and redressable)
- New York Reg'l Interconnect v. FERC, 634 F.3d 581 (D.C. Cir. 2011) (speculative fear of future rate consequences not injury)
- Illinois Commerce Comm'n v. FERC, 576 F.3d 470 (7th Cir. 2009) (unreasonableness requires demonstrated benefit-cost relation)
- Environmental Action v. FERC, 996 F.2d 401 (D.C. Cir. 1993) (cognizable injury requires concrete numbers/limitations)
- Sacramento Mun. Util. Dist. v. FERC, 616 F.3d 520 (D.C. Cir. 2010) (standing requires ability to challenge future rate determinations)
- DEK Energy Co. v. FERC, 248 F.3d 1192 (D.C. Cir. 2001) (showing actual impact, not speculative reliance on future events)
- Sherley v. Sebelius, 610 F.3d 69 (D.C. Cir. 2010) (injury must be actual or imminent, not speculative)
