In the Matter of Energy Association of New York State v. New York Public Service Commission
New York Supreme Court
653 N.Y.S.2d 502 (1996)
- Written by Miller Jozwiak, JD
Facts
During the 1990s, the power-supply industry in the United States was becoming more competitive. In response, the New York Public Service Commission (commission) (defendant) developed actions that would make the industry in New York more competitive. In 1996, the commission issued an order that aimed to create a more competitive marketplace for the power services. Specifically, the order (1) required electric utilities to file plans on how they would restructure in a more competitive marketplace, (2) rejected utilities’ claims of entitlement to recover all losses from consumers as a matter of law, and (3) set forth a competition statement. In effect, the order was a policy statement calling for New York to restructure how it regulated the power industry in the state. A group of utilities (plaintiffs) challenged the order on various grounds. Specifically, the utilities argued that (1) the commission did not have jurisdiction to require the utilities to file the restructuring plan, (2) the utilities were entitled as a matter of law to recover all competitive losses, and (3) the utilities were entitled to challenge even the parts of the order that were mere policy statements without any specific required actions. The matter went before the court for a determination.
Rule of Law
Issue
Holding and Reasoning (Harris, J.)
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