Washington Public Power Supply System, a Municipal Corporation v. Pacific Northwest Power Company, a Corporation

The parties to this appeal are competing applicants before the Federal Power Commission for a license to construct a hydro-electric project on the Snake River between Oregon and Idaho.

Appellant, a municipal corporation organized under the laws of Washington, brought suit under 28 U.S.C.A. §§ 2201 and 2202 for a judgment declaring: (1) that appellant was not precluded by Washington law from building such a project outside the boundaries of the state; and (2) that, in any event, a federal license, if granted, would supersede any prohibition or disability arising under state law.

The district court entered judgment declaring: (1) that the laws of Washington did not authorize appellant to construct such facilities outside the boundaries of the state; and (2) that a license issued by the Commission could not confer such capacity or authority upon appellant. Washington Pub. Power Supply Sys. v. Pacific Northwest Power Co., 217 F.Supp. 481 (D.Ore.1963). This appeal followed.

While the appeal was pending here, the Commission denied appellant’s application and issued a license to construct the project to appellee. The Commission based its decision on the ground that because a…