City of Centralia, Washington v. Federal Energy Regulatory Commission, and Pacific Power and Light Company, Respondent-Intervenor

In this challenge to the Federal Energy Regulatory Commission’s disposition of two competing applications to develop a hydroelectric project at a dam, we review the policies developed by the Commission to reconcile its differing mandates under the Federal Power Act and the Public Utility Regulatory Policies Act of 1978, as amended by the Energy Security Act of 1980. We affirm those policies under the two acts and affirm its disposition of the competing applications.

I. BACKGROUND

A. Statutory Framework

Congress enacted the Federal Power Act (FPA) to promote the “ ‘comprehensive development of water power.’ ” Chemehuevi Tribe of Indians v. FPC, 420 U.S. 395, 405 , 95 S.Ct. 1066, 1073 , 43 L.Ed.2d 279 (1975) (quoting FPC v. Union Electric Co., 381 U.S. 90, 101 , 85 S.Ct. 1253, 1259 , 14 L.Ed.2d 239 (1965)). In furtherance of that objective and to assure that such development serve the public interest, Congress established a licensing scheme, administered by the Commission, in Subchapter I of the FPA, 16 U.S.C. §§ 791a-823a (1982), for the construction, operation, and maintenance of hydroelectric power projects. Northern Colorado Water Conservancy District v. FERC, 730 F.2d 1509,…