Verso Corp. v. FERC, No. 15-1098 (D.C. Cir. 2018)Annotate this Case
Petitioners challenged FERC's refund order in a cost-allocation case where the agency found that the rate-distribution methodology was unjust and unreasonable. FERC ordered refunds to customers who paid too much, funded by surcharges on customers who paid too little. The DC Circuit denied the petitions for review and held that the reallocation at issue did not constitute an impermissible retroactive rate increase where FERC reasonably determined that the prior rate methodology was unjust and unreasonable, and its reliance on certain evidence in reaching this conclusion was appropriate. FERC had authority to order refunds and corresponding surcharges under Section 206 of the Federal Power Act and its broad remedial authority under Section 309, because it had established that the existing rate was unjust and unreasonable, and that a different methodology would comply with cost-causation principles.