Sierra Pacific Power Company v. Federal Energy Regulatory Commission, and Utah Power and Light Company, Intervenor

Sierra Pacific Power Company (“Sierra”) petitions for review of the Federal Energy Regulatory Commission’s (“FERC”) orders permitting the costs of Utah Power and Light Company’s (“UP & L”) lower voltage transmission system to be rolled-in with the costs of its higher voltage system. Sierra argues that FERC’s findings are not supported by substantial evidence and that FERC erroneously failed to follow its own precedent. We affirm.

FACTS AND PROCEEDINGS BELOW

In January 1982, pursuant to section 205(d) of the Federal Power Act, 16 U.S.C. § 824d(d) (1982), UP & L filed with FERC revised rate schedules that increased electricity rates to its interstate resale customers. In March 1982, FERC accepted the revised rate schedules for filing, ordered a hearing concerning the reasonableness of the revised rates pursuant to 16 U.S.C. § 824d(e) (1982), and permitted several parties, including Sierra, one of UP &x L’s interstate resale customers, to intervene as objectors.

In June 1983, FERC accepted a settlement in the rate revision controversy with one exception. The unresolved issue concerned Sierra’s (a higher voltage customer) disagreement with UP & L’s use of the rolled-in allocation…