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Citizens United for Responsible Energy Development, Inc. v. Illinois Commerce Commission

Citations: 673 N.E.2d 1159; 285 Ill. App. 3d 82; 220 Ill. Dec. 738Docket: 5-95-0564

Court: Appellate Court of Illinois; December 5, 1996; Illinois; State Appellate Court

Narrative Opinion Summary

This case involves an appeal by Citizens United for Responsible Energy Development, Inc. (CURED) against the Illinois Commerce Commission's (Commission) decision to grant a certificate of public convenience and necessity to the Illinois Municipal Electric Agency (Agency) for constructing a 138-kilovolt electric transmission line, known as the Aviston-Highland line. CURED contested the Commission's determination, arguing that the decision was not substantiated by substantial evidence, particularly criticizing the lack of investigation into the least-cost means requirement under the Public Utilities Act. The Commission had concluded that the proposed transmission line was the least-cost solution, despite acknowledging that its staff did not fully investigate this issue. Additionally, CURED raised procedural concerns regarding the neutrality clause in the Agency's agreement with Illinois Power and potential cost underestimations. The Commission's authority to mandate shared utility property use under Section 8-502 was also questioned. The appellate court found the Commission's investigation inadequate, reversing the decision and remanding the case for further proceedings to thoroughly explore the least-cost requirement and other raised issues. The case underscores the necessity for the Commission to ensure decisions are based on comprehensive factual records and to consider all viable alternatives to meet statutory requirements.

Legal Issues Addressed

Authority of the Commission under Section 8-502 of the Public Utilities Act

Application: The Commission has the authority to require shared use of utility property if it serves public convenience and necessity, which was not adequately explored in this case.

Reasoning: The Commission has the authority under section 8-502 of the Public Utilities Act to mandate that Illinois Power share its East Collinsville-Highland right-of-way with the Agency if that route is determined to be superior.

Certificate of Public Convenience and Necessity under Public Utilities Act

Application: The Illinois Commerce Commission's decision to grant a certificate to the Agency was challenged, requiring demonstration of necessity and least-cost means.

Reasoning: The Commission determined that the Agency's proposed Aviston-Highland 138-kilovolt line was the least-cost solution for its customers and issued a certificate of public convenience and necessity for its construction.

Judicial Review of Commission Orders

Application: The court's role is to ensure the Commission's orders are supported by substantial evidence and not arbitrary or contrary to law.

Reasoning: Courts should not replace the Commission's judgment or conduct independent investigations. Although Commission orders receive great deference, they may be overturned if deemed arbitrary, unreasonable, or contrary to established law.

Least-Cost Means Requirement under Section 8-406(b) of the Public Utilities Act

Application: The Commission's failure to adequately investigate the least-cost means for the proposed transmission line undermined its decision.

Reasoning: The lack of consideration for the least-cost means by the Commission's staff and the hearing examiner's negligence in addressing it undermines the foundation of the Commission's determination regarding the Agency's proposal.