Public Utilities Commission of California v. Federal Energy Regulatory Commission

The Public Utilities Commission of the State of California (CPUC) and the Pacific Gas and Electric Company (PG & E), plus numerous intervenors, have petitioned for review of the Federal Energy Regulatory Commission’s (FERC’s) determination that it has exclusive jurisdiction, under the federal Natural Gas Act (NGA), 15 U.S.C. §§ 717 et seq., over Mojave Pipeline Company’s application *1456 to expand its existing natural gas facilities in California.

The NGA, administered by FERC, governs the transportation and sale of natural gas in interstate commerce. 15 U.S.C. § 717 (b). The Act does not apply to “any other transportation or sale of natural gas or to the local distribution of natural gas or to the facilities used for such distribution or to the production or gathering of natural gas.” Id. The NGA also does not apply to persons engaged in certain kinds of interstate transportation of natural gas when all the gas is consumed within the receiving state. 15 U.S.C. § 717 (c). FERC has no regulatory jurisdiction in these situations, and instead the appropriate state agency regulates such projects.

If the NGA applies to a natural gas project, section 7 requires the natural gas…