FERC Electricity Contract Exit Fee Calculations Upheld by Court

The Federal Energy Regulatory Commission on Tuesday successfully defended its method for calculating contract termination payments for certain electricity cooperatives.

FERC engaged in reasoned decision-making for all of its determinations, the US Court of Appeals for the Tenth Circuit said in its majority opinion.

However, Judge Carolyn B. McHugh partially concurred and dissented, citing the commission’s changing position during related proceedings.

“Although FERC is permitted to change its mind, it did not acknowledge, much less explain, its decision to change course in the compliance proceedings,” she wrote.

Tri-State Generation and Transmission Association Inc. submitted to FERC a contract termination payment ...