United States v. Alaska Public Utilities Commission

Opinion by Judge T.G. NELSON

I.

OVERVIEW

The Alaska Public Utilities Commission (APUC) and the State of Alaska appeal from the district court’s summary judgment in favor of the United States Department of Defense (DOD) in the DOD’s action challenging the APUC’s assessment of costs for two administrative utility rate proceedings in which the DOD had intervened. The district court held that the application of an Alaska statute requiring the APUC to allocate the costs of the hearing among the parties to the federal government is an unconstitutional exercise of state powers in violation of the Supremacy Clause of the Constitution (art. VI, cl. 2). United States v. Alaska Pub. Utilities Comm’n, 800 F.Supp. 857, 864 (D.Alaska 1992). We affirm. However, we share the concern voiced by the district court concerning the United States’ position in this case, and agree with the district court’s observation that “the parties should approach this problem at an appropriate executive level and resolve the matter in a fashion that will not trigger the hard rules which dictate the decision in this case.” Id. at 865 .

II.

FACTS AND PROCEDURAL HISTORY

The facts are not disputed. In 1985 and…