Quimbee logo
DMCA.com Protection Status
From our private database of 18,800+ case briefs...

Union Electric Co. v. Federal Energy Regulatory Commission

United States Court of Appeals for the District of Columbia Circuit
890 F.2d 1193 (1989)


The Federal Energy Regulatory Commission (FERC) (defendant) opened a proceeding to adjust the rate of return for Union Electric Company’s (Union) (plaintiff) electric rates. The administrative record was closed on August 15, 1985. Based on this record, the administrative law judge (ALJ) made a recommendation for a rate of return. FERC issued an order on July 20, 1987, with a lower rate of return than the ALJ recommended. FERC based the reduced rate of return on the decrease in the U.S. Treasury’s bond interest rates between the closure of the record and the issuance of the order. Because the record had been closed, the bond interest rates that FERC used were not in the administrative record. Union filed a petition for rehearing, arguing that the Treasury’s bond interest rates were not relevant to an electric company’s costs of common equity capital. Accordingly, Union argued, FERC’s reliance on the interest rates was improper. FERC rejected Union’s argument out of hand, stating that Union should have been aware of FERC precedent that supported the order. FERC did, however, at Union’s behest, consider the increase in the Treasury’s bond interest rates in the two months after FERC issued its order, and FERC increased Union’s rate of return accordingly. The ordered rate of return was still significantly lower than the rate recommend by the ALJ. Union brought suit challenging FERC’s order on the ground that it violated the Administrative Procedure Act (APA) by not affording Union a fair opportunity to respond to FERC’s reliance on the Treasury’s bond interest rates.

Rule of Law


Holding and Reasoning (Williams, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 498,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 498,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 18,800 briefs, keyed to 985 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial