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Vermont Department of Public Service v. Massachusetts Municipal Wholesale Electric Co.

558 A.2d 215 (1988)

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Vermont Department of Public Service v. Massachusetts Municipal Wholesale Electric Co.

Vermont Supreme Court
558 A.2d 215 (1988)

DD

Facts

Four Vermont municipalities (the municipalities) (defendants) entered into contracts with the Massachusetts Municipal Wholesale Electric Company (MMWEC) (defendant). These contracts were known as power-sales agreements (PSAs). In exchange for monthly payments to the MMWEC, the municipalities acquired shares in an MMWEC project. Under the PSAs, the MMWEC had the sole power to fix the amount of the municipalities’ monthly payments. The Vermont Department of Public Service (the department) (plaintiff) brought suit, contending that the PSAs constituted an impermissible delegation of the municipalities’ spending power to the MMWEC. The superior court granted summary judgment for the municipalities. The department appealed.

Rule of Law

Issue

Holding and Reasoning (Allen, C.J.)

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