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FERC ALJ Rules PATH Must Refund Costs of Influencing Public Officials

9/16/2015

19 Comments

 
My challenge partner, Ali Haverty, reminded me this morning of a Facebook meme we shared months ago.  It's a photo of two owls on a branch, and says, "Sometimes I just want someone to hug me and say, 'I know it's hard.  You're going to be okay.  Here is chocolate and 6 million dollars.'"

And that's what we got.  Of course, the 6 million dollars belongs to the 61 million ratepayers in the PJM region.  Our personal share is probably about a nickel.

On Monday, FERC ALJ Philip Baten issued his ruling on the PATH case that was heard back in the spring.

Ali and I were seeking the refund of just over $6M in expenses for the purposes of influencing the decisions of public officials that PATH incurred and recovered from PJM ratepayers in 2009, 2010 and 2011.  Judge Baten ruled that all of the expenditures were not recoverable in PATH's rates and must be refunded.

This is my favorite part:
As a general proposition, the cases that are discussed above suggest that when utilities are seeking selection or CPCN approvals from governmental entities, the utilities should rely on the established governmental approval processes to persuade the officials and not indulge in collateral efforts such as public education, outreach, and advertising activities.  If a utility should rely on  these collateral activities while pursuing selection or CPCN processes, then it will risk the chance that these costs may not be recovered from ratepayers.  If the selection or CPCN application has merit, the governmental selection process provides a sufficient vehicle for the utilities to present their engineering, marketing and economic studies and thereby hope to merit the vote of approval from these officials.  In this regard the PATH Companies spent over $8 million on attorney fees to prosecute the CPCNs before the respective governmental bodies, which begs the need for these collateral expenses.
The judge's decision must now go before the Commission, who may affirm or deny, in whole or in part.  That decision is several months down the road, at least, and requires another round of briefs.

Meanwhile...  more chocolate.  And champagne.  And music.  Let there be music!

19 Comments
Pam
9/16/2015 01:42:40 am

You guys are awesome.

Reply
Maestro
9/16/2015 02:09:29 am

Perhaps this would be more appropriate. https://www.youtube.com/watch?v=V92OBNsQgxU

Reply
Zeus
9/16/2015 04:03:36 am

Welcome to the Mount Olympus of consumer activists. Ralph Nader will be toasting you shortly. Maybe you would have won everything if you'd gone to Hahvard Law as well! There's always next year for that. Congratulations!

Reply
Hedwig And The Angry Inch
9/17/2015 08:02:23 am

That must make the company very VERY angry!

Reply
Rabbleroused
9/17/2015 10:59:22 pm

Well, well. Now I understand why PATH seemed to take the pro se intervenors so seriously ... You guys had the best case!

Nothing like having your hand caught in the cookie jar and having the cookies taken away, not just from you but from all your friends, too!

Reply
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9/21/2015 03:52:18 am

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    About the Author

    Keryn Newman blogs here at StopPATH WV about energy issues, transmission policy, misguided regulation, our greedy energy companies and their corporate spin.
    In 2008, AEP & Allegheny Energy's PATH joint venture used their transmission line routing etch-a-sketch to draw a 765kV line across the street from her house. Oooops! And the rest is history.

    About
    StopPATH Blog

    StopPATH Blog began as a forum for information and opinion about the PATH transmission project.  The PATH project was abandoned in 2012, however, this blog was not.

    StopPATH Blog continues to bring you energy policy news and opinion from a consumer's point of view.  If it's sometimes snarky and oftentimes irreverent, just remember that the truth isn't pretty.  People come here because they want the truth, instead of the usual dreadful lies this industry continues to tell itself.  If you keep reading, I'll keep writing.


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