Supreme Court Majority Rules Mobile-Sierra Doctrine Applies to Rate Challenges by Non-Contracting Parties

摘要

On 1/13/10 the United States Supreme Court ruled 8-1 that the Mobile-Sierra presumption does not depend on the identity of the complainant who seeks a FERC investigation of rates. And the presumption is not limited to challenges to contract rates brought by contracting parties. It applies, as well, to challenges initiated by non-contracting parties. This case addresses the Mobile-Sierra doctrine1 (again) - United Gas Pipe Line Co. v. Mobile Gas Service Corp., 350 U. S. 332, and FPC v. Sierra Pacific Power Co., 350 U. S. 348 - which requires FERC to presume that an electricity rate (or gas rate set pursuant to the Natural Gas Act) set by a freely negotiated wholesale-energy contract meets the Federal Power Act's (FPA) "just and reasonable" prescription. The presumption may be overcome only if FERC concludes that the contract seriously harms the public interest. Morgan Stanley Capital Group Inc. v. Public Util. Dist. No. 1 of Snohomish Cty No. 06-1457 (June 26, 2008))