Opinion for the Court filed by Circuit Judge STEPHEN F. WILLIAMS.
H.Q. Energy Services (U.S.) Inc. (“H.Q. Energy”) is a wholly owned subsidiary of Hydro-Quebec, an electric utility that owns and controls facilities for the generation, transmission and distribution of electric power in Quebec. In November 1997 the Federal Energy Regulatory Commission authorized H.Q. Energy to sell power within the United States at market-based rates rather than under the traditional cost-based rate ceilings.
H.Q. Energy Services (U.S.) Inc.,
Pursuant to § 205(c) of the Federal Power Act (“FPA”), 16 U.S.C. § 824d(c) (1994), a power marketer that seeks to engage in electricity sales under the jurisdiction of the Federal Energy Regulatory Commission must place its rate schedule on file with the Commission. H.Q. Energy requested the Commission to accept for filing a rate schedule authorizing it to sell power at market-based rates.
In reviewing such applications, the Commission demands that the power marketer establish that it, and its affiliates, either do not have, or have adequately mitigated, market power in both generation and transmission. The applicant must also establish that it cannot erect barriers to entry, and that there is no evidence of other behavior perceived as anticompeti-tive, such as affiliate abuse or reciprocal dealing. See
H.Q. Energy Services (U.S.) Inc.,
In response to H.Q. Energy’s application, several entities, including the Grand Council and the Coalition, moved to intervene. The Grand Council is a political and governmental entity, representing about 10,000 indigenous people of Northern Quebec. The Coalition is “an association of American consumers, customers, birders, recreational canoeists, energy activists and environmental organizations which has actively intervened in regulatory proceedings in Vermont since 1989.”
The Commission initially addressed the issue of transmission, finding H.Q. Energy’s market power adequately mitigated.
H.Q. Energy then made a supplemental filing on generation. The Commission found that the firm’s market shares, in the thirteen United States markets analyzed, would range from 27.8% to 35% of installed capacity, and from 31.8% to 38% of uncommitted capacity.
Petitioners have failed to demonstrate standing to raise their claims. Although the claims arise under different statutes— and we address their standing to bring each claim in turn — they nevertheless both rest primarily on an allegation of environmental harm. The Grand Council alleges that the Commission’s license will “devastate the lives, environment, culture and economy of the Crees.” The Crees’ reasoning is that H.Q. Energy’s license to sell power at market-based rates will lead to an increase in Hydro-Quebec’s exports, which will in turn lead to the construction of new hydroelectric facilities, which “will destroy fish and wildlife upon which Cree fishermen, trappers and hunters depend.” The Coalition alleges an environmental harm one step further removed in the causal and geographic chain: many species of migratory birds that are found in New York and New England during parts of the year rely on the habitat of Northern Quebec; these birds, including one species that has been classified as endangered, are threatened by development of hydro-electric projects in that region.
We first consider petitioners’ claims under the FPA. Although there are very serious doubts whether petitioners have satisfied Article III standing, their more straightforward deficiency is in “prudential standing.” Article III standing must be established before any decision is made on the merits. See
Steel Co. v. Citizens for a Better Environment,
To establish prudential standing, plaintiffs generally must show that “the interest sought to be protected by the complainant is arguably within the zone of interests to be protected or regulated by the statute.”
Association of Data Processing Serv. Orgs., Inc. v. Camp,
Petitioners argue that here Congress has dispensed with prudential standing by providing that “[a]ny person ... aggrieved by an order issued by the Com
*955
mission in a proceeding under this chapter” may apply to have the order reheard, 16 U.S.C. § 825l(a). Petitioners rely on
FEC v. Akins,
Petitioners also rely upon
Bennett v. Spear,
Petitioners argue that even if the statute imposes prudential standing requirements, the harms they allege clearly fall within the statute’s zone-of-interests. The “zone” test is “not meant to be especially demanding,”
Clarke v. Securities Indus. Assoc.,
The order at issue in this case, however, merely allows H.Q. Energy to broker energy at market-based rather than cost-based rates. Although the Second Circuit found that environmental concerns motivated Congress in enacting the FPA, and are “undoubtedly” within the zone of interests protected when the agency acts to authorize construction,
id.,
the agency here acts only in its ratemaking capacity. And as the Supreme Court has said, “the meaning of the zone-of-interests test is to be determined not by reference to the overall purpose of the Act in question ..., but by reference to the particular provision of law upon which the plaintiff relies.”
Bennett v. Spear,
All rates and charges made, demanded, or received by any public utility for or in connection with the transmission or sale of electric energy subject to the jurisdiction of the Commission, and all rules and regulations affecting or pertaining to such rates or charges shall be just and reasonable....
16 U.S.C. § 824d(a).
In interpreting the statutory provision, “just and reasonable,” the Supreme Court has emphasized that “the Commission [is] not bound to the use of any single formula or combination of formulae in determining rates.”
FPC v. Hope Natural Gas Co.,
Following the judicial lead, the Commission has affirmatively forsworn environmental considerations. In
PSI Energy, Inc.,
The Commission’s understanding of its duty under § 205(a) leads us toward a resolution of the zone-of-interests test. The test embraces interests “ ‘arguably ... to be protected’ by the statutory provision at issue,”
National Credit Union Admin. v. First Nat’l Bank & Trust Co.,
FERC’s exclusion of environmental claims is valid. In the face of congressional silence we defer to an agency’s reasonable interpretation of statutes it is charged with administering.
Chevron U.S.A. Inc. v. NRDC,
Petitioners driven by environmental interests might still be “suitable challengers” if their interests were “congruent” with the pertinent interests. But ratemaking under § 205(a) is, as our cases have made clear, an effort to balance the interests of power consumers and producers. Environmental interests appear orthogonal to both. Thus litigation by persons whose interests are such is “more likely to frustrate than to further ... statutory objectives,”
Mova Pharmaceutical Corp.,
For the Coalition, environmental impacts are not the sole basis for asserting claims that the Commission misapplied § 205(a). Its members, residents of New York and Vermont, are also power consumers. (The Coalition does not say that they buy power originating with H.Q. Energy or Hydro-Quebec, a possible deficiency in their Article III standing.) But the Coalition does
not
claim that FERC’s Order will directly injure them as power buyers, as might be the case in the normal interstate transaction. Even
without
the marketing order Hydro-Quebec is entitled to sell into border states — as it concededly has been doing — without any subjection to FERC ratemaking. See Rehearing Order,
The Coalition’s fear that such state regulation would be preempted is unfounded. The Federal Power Act explicitly provides that state regulation of energy sold between a state and a foreign country is only preempted when it conflicts with the Commission’s statutory requirements relating to the
export
of energy. See 16 U.S.C. § 824a(f). State regulation of imports does not present such a conflict, and therefore would not be preempted by the Order at issue here. Thus, this additional interest does not even constitute an “injury-in-fact,” necessary for Article III standing.
Lujan v. Defenders of Wildlife,
We now turn to petitioners’ NEPA claim. Their alleged injury, once again, is to their environmental interests; the Commission’s failure to perform an environmental assessment made its grant of the Order more probable, thus increasing the likelihood of their suffering the environmental injuries that they claim. See
Lujan,
This of course turns on the purposes of the provision that petitioners invoke— NEPA’s requirement that agencies include an environmental impact statement (“EIS”) with every “major Federal ac
*959
tion[ ] significantly affecting the quality of the human environment.” NEPA § 102(2X0, 42 U.S.C. § 4332(2)(C). The requirement is said to serve at least two congressional purposes. First, it ensures that the agency will have access to “detailed information concerning significant environmental impacts.”
Robertson v. Methow Valley Citizens Council,
Looked at broadly, the EIS requirement obviously seeks to protect environmental interests.
United States v. Students Challenging Regulatory Agency Procedures (“SCRAP”),
Because § 102(2)(C) does not impose any additional substantive requirements on FERC, but merely serves to ensure that FERC consider those environmental concerns that it is already authorized to consider, the zone-of-interests of the EIS requirement can be examined only in conjunction with the relevant substantive provision. Because we have decided that the Commission properly does not consider environmental concerns in the exercise of its ratemaking authority under FPA § 205, NEPA’s procedural requirements (if they even apply to FERC’s rate-making decisions, which we do not decide) do not further petitioners’ environmental interests in this instance. Accordingly, given the absence of any allegation by petitioners of an “informational injury,” compare
FEC v. Akins,
We stress that although our decision here has involved an interpretation of FPA § 205(a) and NEPA § 102(2)(C), we do not purport to decide the merits of the case — in particular petitioners’ claim that FERC violated NEPA by refusing to perform an environmental assessment and, in the alternative, that even if FERC’s regulation, 18 CFR § 380.4(a)(15) (1996), provides a valid categorical exclusion for all electric rate filings pursuant to FPA § 205, the agency cannot rely on this justification without having invoked it during the proceedings. To the extent that we have broached merits issues concomitant to resolving prudential standing,
Steel Co.
clearly contemplates that courts may do so even before resolving Article III standing. It explicitly notes that “a statutory standing question can be given priority over an Article III question,”
The question whether this plaintiff has a cause of action under the statute, and the question whether any plaintiff has a cause of action under the statute are closely connected — indeed, depending upon the asserted basis for lack of statutory standing, they are sometimes identical, so that it would be exceedingly artificial to draw a distinction between the two.
Id.
Unlike the “doctrine” or practice of “hypothetical jurisdiction,” which
Steel Co.
emphatically rejected, such treatments of prudential standing do not carry a risk of plunging a court into issuing advisory opinions.
Id.
at 1016; see also
United States ex rel. Long v. SCS Business & Technical Institute, Inc.,
Accordingly, the petition is
Dismissed.
Notes
. We do not consider the further question whether environmental injuries experienced abroad by foreign nationals (e.g., the Crees) are ever within the zone of interests of federal statutes. Compare
Corrosion Proof Fittings v. EPA,
