705 F.3d 474
D.C. Cir.2013Background
- NYISO runs New York bulk power markets and uses reliability energy commitments with price mitigation when market power appears.
- Mitigation measures reduce a reliability generator’s compensation to its reference (marginal) cost under specified conditions.
- Ravenswood owns a NYC-area generator and is not directly subject to rest-of-state mitigation.
- Ravenswood argued mitigation without counterbalancing buy-side protections harms suppliers via uneconomic entry in capacity market.
- Commission rejected Ravenswood’s request to address uneconomic entry and procedural mechanisms, and Ravenswood challenged standing and the agency’s approach in this petition for review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to challenge the mitigation order | Ravenswood seeks protection from uneconomic entry | FERC contends Ravenswood lacks injury from rest-of-state mitigation | Ravenswood has standing to challenge the refusal to address uneconomic entry |
| Whether the Commission abused its discretion by not addressing uneconomic entry | Mitigation without counterbalancing buy-side safeguards harms suppliers | Agency engaged iterative process and addressed related issues | No abuse; affirmed agency’s iterative approach and denial of remedies in this proceeding |
| Ravenswood's single-issue rate filing challenge | FERC violated general policy against single-issue filings | Agency properly sequenced issues within its process | No reversible error; agency acted within discretion |
Key Cases Cited
- Texas Monthly, Inc. v. Bullock, 489 U.S. 1 (1989) (standing and remedies in regulatory challenges informed by difference between requested and granted relief)
- Mobil Oil Exploration & Producing Se. Inc. v. United Distrib. Cos., 498 U.S. 211 (1991) (agency discretion in handling related issues; due process protection of fairness in administrative action)
- Hope Natural Gas Co., 320 U.S. 591 (1944) (total effect standard for reasonableness of rate orders)
- NEPCO Municipal Rate Committee v. FERC, 668 F.2d 1327 (D.C. Cir. 1981) (limits of rate adjustments and procedural handling of changes in tariffs)