California ex rel. Lockyer v. Federal Energy Regulatory Commission

This case involves a challenge to the Federal Energy Regulatory Commission’s approval of a corporate reorganization of certain Pacific Gas & Electric Co. subsidiaries. The petitioners, the State of California and the Northern California Power Agency, contend that the restructuring was designed to shield assets worth millions of dollars from creditors. The petitioners raise procedural and substantive objections to the Commission’s order approving the reorganization. The petitioners argue that the Commission provided inadequate notice of Pacific Gas & Electric’s applications, provided inadequate opportunity for a hearing, and failed to conduct properly the “public interest” analysis mandated by § 230 of the Federal Power Act. We hold that (1) the Commission’s Federal Register notice language adequately notified the public of the “essential attributes” of the corporate reorganization, even though the notice language did not disclose the applicant’s motive in making the applications or how the applicant would benefit from the reorganization; (2) the Commission’s expedited review process, in this case, did not deprive the petitioners of the opportunity to be heard within the…