Office of the Public Advocate v. Public Utilities Commission
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In the case before the Maine Supreme Judicial Court, the Office of the Public Advocate (the appellant) contested a decision by the Public Utilities Commission (PUC) that approved an amended special rate contract between Bangor Natural Gas Company and Bucksport Generation LLC. The appellant argued that the PUC applied the wrong standard in reviewing the contract, which led to unjust or unreasonable rates and undue or unreasonable preference for Bucksport Generation over other Bangor Gas customers. The appellant also argued that the PUC's order should be vacated because it relied on evidence not included in the record.
The court disagreed with the appellant's first argument and found the second argument waived, thereby affirming the PUC's order. The court held that the PUC was within its discretion to apply different standards of review for special rate contracts depending on the type of utility service at issue. Given the competitive nature of the natural gas market in Maine, the court deemed the PUC's standard reasonable.
Regarding the rates, the court found that the PUC’s approval of the special rate contract did not result in unjust, unreasonable, or discriminatory rates for other Bangor Gas customers. The court noted that incentivizing continued financial contributions from Bucksport Generation to Bangor Gas’s fixed costs was justifiable.
Finally, the court ruled that the appellant's argument about the PUC's failure to create an evidentiary record was waived due to the appellant's failure to raise the issue at the PUC level. However, the court acknowledged the appellant's point and advised the PUC to clarify its regulations regarding what materials constitute the evidentiary record in proceedings where an evidentiary hearing is not held.
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