Ninth Circuit Upholds Power Rate Contract
Posted on Oct 17, 2012 in Litigation, Rates | Comments Off on Ninth Circuit Upholds Power Rate Contract
On October 16, the Ninth Circuit denied requests by utility cooperatives to review a power rate contract between Alcoa, Inc. (Alcoa) and Bonneville Power Administration (BPA). The coops argued that BPA was selling power to Alcoa at the statutorily mandated industrial firm power rate, thereby forgoing profits that could have been used to lower rates to its customers. The Ninth Circuit held that BPA is not required by law to maximize its profits and that BPA’s decision not to sell power to Alcoa at the market rate was not arbitrary and capricious. To read more about the Ninth Circuit’s decision in this case, click here (subscription required).
