Regulatory Commission of Alaska v. Matanuska Electric Association, Inc.Annotate this Case
Electrical utilities entered into agreements for the purchase and transmission of energy from a hydroelectric project to utilities in distant service areas. Legislation exempted the agreements from the review or approval of the Regulatory Commission of Alaska (RCA); any disputes were to be resolved instead by a contractually established committee. A substation leased by Homer Electric Association (HEA) to Chugach Electric Association (Chugach) and used by Chugach for the transmission of the distant utilities’ electricity was along the transmission pathway. When the lease expired, HEA filed tariff applications with the RCA, seeking approval of rates for its own transmission of the other utilities’ energy. The other utilities objected to the RCA’s jurisdiction, citing their agreements and the legislation exempting the agreements from regulatory review. The RCA determined that it had the authority to consider the tariff applications. The affected utilities appealed to the superior court, which held that the RCA did not have that authority. HEA and the RCA petitioned the Alaska Supreme Court for review, challenging both the superior court’s appellate jurisdiction and the merits of its decision regarding the RCA’s authority. The Supreme Court rejected the challenges to the superior court’s jurisdiction, and concluded that the intent of the original agreements and of the governing statute was to exclude disputes like this one from the RCA’s jurisdiction. The Court therefore affirmed the decision of the superior court reversing the RCA’s order.