Papago Tribal Utility Authority v. Federal Energy Regulatory Commission, and Arizona Public Service Company, Intervenor

Under the Federal Power Act, 16 U.S.C. § 824 et seq., the Federal Energy Regulatory Commission regulates wholesale sales of electric power. Appeals from FERC decisions are within our jurisdiction pursuant to section 313(b) of the Act, 16 U.S.C. § 825Z (b). Here appellant Papago Tribal Utility Authority (PTUA) challenges a FERC decision in FERC Docket No. ER82'481 establishing wholesale electric power rates for appellee Arizona Public Service Company (APS), an Arizona public utility from which PTUA buys electricity for resale. PTUA attacks APS’ proposed rate treatment of investment tax credits attributable to property placed in service before 1980. It also claims that APS has not acted “prudently” in proceeding with construction of the Palo Verde nuclear power plant, to the detriment of its customers. We affirm the FERC decision.

PRIOR PROCEEDINGS

This proceeding began when APS filed with FERC a request for increases in its wholesale electric rates. The Federal Power Act requires that proposed rate changes be “just and reasonable,” and gives FERC the power to fix just and reasonable rates if the proposed rates do not meet that test. 16 U.S.C. §§ 824d, 824e. FERC requested a…