Turlock Irrigation District v. FERC, No. 16-71380 (9th Cir. 2018)
Annotate this CaseFERC acted arbitrarily and capriciously in denying a complaint brought by the Turlock and Modesto Irrigation Districts alleging that PG&E breached agreements between the parties. The Ninth Circuit granted the petition for review of FERC's orders and held that FERC misinterpreted the definition of "Adverse Impact" to the service territories of the Districts, and thus improperly disposed of the Districts' complaints without determining whether changes to the Remedial Action Scheme may result in reductions in transmission over the California-Oregon Transmission Project. The panel also held that FERC applied the wrong standard for initiating a study when making its factual findings. The panel directed FERC on remand to apply the broader definition of Adverse Impact that included reductions in import capability over the California-Oregon Transmission Project and the proper standard for requesting a study in determining whether PG&E breached the Interconnection Agreements.
Court Description: Federal Energy Regulatory Commission The panel granted a petition for review brought by the Turlock and Modesto Irrigation Districts, and held that the Federal Energy Regulatory Commission (“FERC”)’s orders denying the Districts’ complaint and denying rehearing were arbitrary and capricious. To supply power to their service areas, the Districts use transmission and generation facilities both within and outside of their individual electric systems. In order to import and export power into and out of their systems, the Districts use the California-Oregon Transmission Project,
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