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Case Summary Posted: Illinois Commerce Commission v. FERC, Nos. 13-1674, et al. (7th Cir. June 25, 2014)

from EBA

In a split panel decision issued on June 25, 2014, the United States Court of Appeals for the Seventh Circuit remanded for the second time FERC’s finding that a postage-stamp cost allocation produces a just and reasonable rate for facilities operated at 500 kV and above in the eastern part of PJM. The Seventh Circuit found that FERC cannot accept a postage-stamp cost allocation for such facilities without empirical evidence that the benefits realized by western PJM utilities are roughly commensurate with the costs assigned to such facilities, or else a showing that such empirical analysis would be impossible. The Court found that neither condition was met, and accordingly remanded FERC’s order, which was itself an order on remand from a 2009 Seventh Circuit decision on the same issue, back to FERC for further proceedings. more


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