Petersburg Municipal Power & Light v. Federal Energy Regulatory Commission, 409 F. App'x 364

Five parties filed after-hours electronic applications Feb 2, 2009 with FERC for a Ruth Lake hydro project: Petersburg, Angoon, Wrangell, and Cascade Creek LLC.
FERC regulations govern permit selection when multiple applicants apply, including tie-breaker rules and after-hours filing conventions.
FERC treated all after-hours filings as filed the next business day, setting the time to Feb 3, 2009 at 8:30 a.m. for ranking.
With equal adaptation of plans and identical posturing, FERC used a lottery to break the tie, Angoon winning.
Petersburg challenged the process as arbitrary, arguing the lottery was not authorized and that cooperation among applicants affected fairness; the agency defended its long-standing practice and regulatory gap.
The court denied Petersburg’s petition, affirming FERC’s orders sustaining the preliminary permit and the lottery as a valid tie-breaker under existing regulations and practice.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether FERC properly applied after-hours filing rules and timing.	Petersburg claims timing misapplied after-hours rule.	FERC followed regulations treating after-hours filings as next business day.	Proper application of after-hours rule; no reversal.
Whether the lottery to break the tie was authorized or arbitrary.	Lottery not expressly authorized by regulations.	Lottery permissible under discretionary authority to carry out the Act.	Lottery not arbitrary; permissible.
Whether cooperation between Angoon and Wrangell affected fairness of the lottery.	Cooperation biased results; concerns about fairness.	No joint filing; deterrence of site banking; monitoring planned.	Not arbitrary or capricious under the circumstances.

Bedford v. FERC, 718 F.2d 1164 (D.C.Cir.1983) (deterrence at the licensing stage preserved by discovery rules; not public-interest bias)