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Missouri Pub. Serv. Comm'n. v. FERC, No. 09-1121

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By FindLaw Staff on April 13, 2010 12:21 PM

Missouri Pub. Serv. Comm'n. v. FERC, No. 09-1121, concerned a petition for review before this court of the Federal Energy Regulatory Commission's (FERC) decision regarding the inclusion of acquisition premium costs in petitioner-utility's initial rates.  The court of appeals granted the petition, on the ground that FERC's action was plainly inconsistent with its own precedents and also inconsistent with the agency's treatment of the acquisition premiums embedded in the costs associated with the pipelines at issue.

As the court wrote:  "In its petition for review before this court, MoPSC argues that FERC's decision regarding the inclusion of acquisition premium costs in MoGas's initial rates is arbitrary and capricious. We agree. FERC's action is plainly inconsistent with its own precedents. It is also inconsistent with the agency's treatment of the acquisition premiums embedded in the costs associated with MGC and MPC, with respect to which MoPSC's objections were sustained."

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