People of California v. Powerex Corp.

MEMORANDUM *

The Attorney General of California (Attorney General) challenges the district court’s denial of his motion to remand to state court his state antitrust claims against two energy marketers, Appellees Powerex Corporation (Powerex) and Public Service Company of New Mexico (PNM). The Attorney General also challenges the district court’s grant of Appel-lees’ motions to dismiss based on federal preemption.

The district court properly denied the Attorney General’s motion to remand, as the Attorney General’s claims raised a substantial federal question under the Federal Power Act (FPA). The Attorney General’s antitrust claims depend on whether Powerex and PNM sold in-state electricity as out-of-market electricity, a federal issue over which the Federal Energy Regulatory Commission (FERC) has exclusive jurisdiction. See California ex rel. Lockyer v. Dynegy, Inc., 375 F.3d 831, 843 (9th Cir.2004) (“[Rjemoval jurisdiction lies over a claim to enforce obligations that squarely fall within the exclusive jurisdiction provision of the Federal Power Act.”) (citation omitted).

The district court also properly granted Appellees’ motions to dismiss based on federal preemption.…