Pennsylvania Public Utility Co v. FERC, No. 21-3243 (3d Cir. 2024)
Annotate this CaseIn this consolidated action, the United States Court of Appeals for the Third Circuit reviewed a case concerning the Federal Energy Regulatory Commission's (FERC) acceptance of a tariff filed by PJM Interconnection, L.L.C. (PJM), which took effect by operation of law in 2021. The tariff was at the center of a dispute over whether state-subsidized energy resources should be subject to price mitigation in interstate capacity auctions. Petitioners – the PJM Power Providers Group (P3), the Electric Power Supply Association (EPSA), and the Pennsylvania Public Utility Commission and Public Utilities Commission of Ohio (State Entities) – sought review under Section 205(g) of the Federal Power Act (FPA), a provision allowing for review of FERC's action by inaction. The court held that its review of FERC action, whether actual or constructive, proceeds under the same deferential standards set forth in the FPA and Administrative Procedure Act. The court further held that its review properly encompasses the Commissioners’ statements setting forth their reasons for approving or denying the tariff filing. After reviewing the petitions, the court denied all three, finding FERC’s acceptance of PJM’s tariff was neither arbitrary nor capricious and was supported by substantial evidence in the record.
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