United States Second Circuit

Petitioners challenge four orders of the Federal Energy Regulatory Commission (FERC) approving the New York Independent System Operator's (NYISO) creation of a new capacity zone and ordering the implementation of a demand curve for that capacity zone. Petitioners argue that the orders are arbitrary and capricious, unsupported by substantial evidence, and will result in rates that are not just and reasonable. The petitions for review are denied, where: 1) the FERC adequately justified its decision to authorize NYISO to create the Lower Hudson Valley Zone as well as its decision not to phase in the new zone and its demand curve, notwithstanding New York's transmission upgrade initiatives; 2) FERC was not obligated to require NYISO to implement a process for eliminating the new zone; and 3) petitioner-utilities raised their cost-causation argument in the wrong proceeding, and should have instead raised it in the Demand Curve Proceeding.

Appellate Information

• Decided 04/02/2015
• Published 04/02/2015

Judges

• Livingston

Court

• United States Second Circuit

Counsel