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TEC Cogeneration Inc. v. Florida Power & Light Co.

Citation: 86 F.3d 1028Docket: Nos. 94-4323, 94-4496

Court: Court of Appeals for the Eleventh Circuit; June 10, 1996; Federal Appellate Court

Narrative Opinion Summary

In this case, the primary issue was whether the Public Service Commission (PSC) of Florida provided adequate active supervision over Florida Power & Light (FPL). The court granted a petition for rehearing and revised its previous opinion, specifically addressing the PSC's oversight. The district court had identified active supervision as a critical issue but erroneously found the PSC's supervision inadequate. Contrary to this finding, the appellate court concluded that the PSC significantly influenced FPL's policies on wheeling, rates, and interconnection, thereby satisfying the active supervision requirement. The PSC's actions included approving FPL's denial of wheeling requests after an extensive process and setting cogeneration rates different from those proposed by either Cogenerators or FPL. Moreover, the PSC developed detailed interconnection agreements, demonstrating active regulation. The court denied the petition for rehearing on all other matters, and no judge requested a poll for en banc rehearing, affirming the PSC's structured oversight of FPL under the Florida Administrative Code.

Legal Issues Addressed

Active Supervision Requirement

Application: The court determined that the Public Service Commission's involvement in Florida Power & Light's economic policies met the active supervision requirement, contrary to the district court's conclusion.

Reasoning: Evidence showed that the PSC played a significant role in determining FPL’s economic policies concerning wheeling, rates, and interconnection.

Judicial Review of Administrative Agency Decisions

Application: The court reviewed the district court's decision regarding the adequacy of the Public Service Commission's supervision and modified its previous opinion.

Reasoning: The court granted the appellee's petition for rehearing and modified its previous opinion dated March 8, 1996.

State Oversight of Utility Companies

Application: The court found that the PSC approved and regulated actions of Florida Power & Light, thereby exercising state oversight over the utility's operations.

Reasoning: The PSC’s actions included approving FPL's denial of Cogenerators’ wheeling requests following an eleven-month contested process and establishing rates for cogeneration, which differed from those proposed by the Cogenerators or FPL after extensive agency proceedings.