Independent Energy Producers Ass'n v. California Public Utilities Commission

Independent Energy Producers Association, Inc., 1 Sithe Energies, Inc., and Destec Energy, Inc. (collectively “Independent Energy”) appeal the district court’s summary judgment in favor of the California Public Utilities Commission (“the CPUC”) and Pacific Gas & Electric Co., San Diego Gas & Electric Co., and Southern California Edison Co. (“the Utilities”). Independent Energy brought this action in federal district court seeking a temporary restraining order to prevent the CPUC from implementing an order which delegates to the Utilities the authority to enforce federal operating and efficiency requirements set out in the Public Utility Regulatory Policies Act of 1978 (“PURPA”) and in regulations promulgated by the Federal Energy Regulatory Commission (“the Commission”).

Under Title II of PURPA, Congress designated for special treatment “qualifying co-generation facilities” (“QFs”) 2 that meet fed *850 eral operating and efficiency standards. PURPA and the federal regulations implementing it provide that public utilities are required to purchase electric energy from QFs at a rate that is equal to the incremental cost to the utility of purchasing or generating energy elsewhere.…