Swecker v. Midland Power Coop., No. 14-2186 (8th Cir. 2015)
Annotate this CaseThe Swecker farm in Iowa has a wind generator and is a qualifying power production facility certified by the Federal Energy Regulatory Commission (FERC). The Sweckers sell surplus electric energy to Midland Power Cooperative at a rate established by the Iowa Utilities Board (IUB), implementing FERC rules and regulations, 16 U.S.C. 824a-3(f). For many years, the Sweckers and Midland have litigated rate disputes. The district court dismissed their current suit against Midland and its primary supplier, Central Iowa Power Cooperative (CIPCO), seeking declaratory and injunctive relief requiring Midland “to purchase available energy from plaintiffs . . . at Midland’s full avoided cost, rather than CIPCO’s avoided cost.” The Eighth Circuit affirmed. FERC’s interpretation is controlling and forecloses the contrary interpretation of 18 C.F.R. 292.303(d) urged by the Sweckers.
Court Description: Loken, Author, with Bye and Kelly, Circuit Judges] Civil case - Public Utilities Regulatory Policies Act of 1978. The Federal Energy Regulatory Commission's interpretation of the phrase "avoided costs" when an all-requirements utility is required to purchase electric energy from a qualifying power production facility was not plainly erroneous; was consistent with the provisions of 18 C.F.R. Sections 292.101(b)(6), .303, and .304, read as a whole and in context; reasonably served diverse statutory purposes when applying the Act to a complex situation; and had been the agency's consistent practice since the decision in City of Longmont, 1987 WL 117113 (June 16, 1987); the Agency's interpretation is controlling and forecloses the contrary argument advanced by plaintiffs. Judge Bye, dissenting. [ October 05, 2015
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