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N. Laramie Range Alliance v. FERC

Citations: 733 F.3d 1030; 43 Envtl. L. Rep. (Envtl. Law Inst.) 20237; 2013 WL 5716544; 2013 U.S. App. LEXIS 21372Docket: 19-7059

Court: Court of Appeals for the Tenth Circuit; October 22, 2013; Federal Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In the dispute between the Northern Laramie Range Alliance and the Federal Energy Regulatory Commission (FERC), the Alliance challenged the certification of Wasatch Wind Intermountain, LLC’s wind energy projects as qualifying facilities under the Public Utilities Regulatory Policies Act (PURPA). The Alliance's appeal argued potential electricity rate increases due to Wasatch's certifications. However, the Tenth Circuit Court dismissed the appeal, citing the Alliance's lack of standing. The court emphasized the Alliance's failure to demonstrate traceability and redressability, key components of standing under Article III. The Alliance could not prove that any alleged rate increases were directly attributable to Wasatch's certifications, as these depended on independent actions by Rocky Mountain Power and the Wyoming Public Service Commission. Furthermore, the potential for rate reductions following a favorable ruling was deemed speculative. The court also examined Wasatch's certification process and the regulatory framework encouraging alternative energy production. Ultimately, the court concluded that the Alliance did not meet the burden of establishing standing, leading to the dismissal of the petition.

Legal Issues Addressed

Avoided Costs under PURPA

Application: The court reviewed how Rocky Mountain Power's purchase price for wind energy was based on avoided costs, which are determined by the Wyoming Public Service Commission.

Reasoning: Rocky Mountain Power’s purchase price is based on 'avoided costs,' defined as the incremental cost the utility would incur to generate or acquire electricity from other sources.

Certification of Qualifying Facilities under PURPA

Application: The court examined Wasatch's certification of its wind projects as qualifying facilities and the implications of such certifications on regulatory obligations.

Reasoning: Wasatch claims to be developing two distinct small-production facilities, a position disputed by the Alliance, which contends that Wasatch's plans imply a single facility.

Redressability in Administrative Appeals

Application: The court determined that the Alliance could not show that a favorable ruling would likely result in lower electricity rates, dismissing the argument as speculative.

Reasoning: Regarding redressability, the Alliance did not establish that a favorable outcome (decertification of Wasatch) would likely lead to lower rates for ratepayers.

Standing Requirements under Article III

Application: The court analyzed whether the Alliance demonstrated traceability and redressability to establish standing, concluding that the Alliance failed to meet these constitutional requirements.

Reasoning: Regarding standing, the Alliance failed to meet two constitutional requirements under Article III: traceability and redressability.

Traceability in Administrative Appeals

Application: The court found that the Alliance could not prove that any rate increases were directly traceable to Wasatch's certifications, as the rate changes depended on independent actions by third parties.

Reasoning: For standing to exist, the Alliance must demonstrate that these third parties increased rates directly due to Wasatch's certification, which they have failed to do.