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Nebraska Public Power District v. Federal Energy Regulatory Commission

ELR Citation: 50 ELR 20105
Nos. 19-1553, (8th Cir., 04/30/2020)

The Eighth Circuit upheld FERC's decision to place a Colorado energy wholesaler into Zone 17 of a regional transmission organization authorized by the Commission to provide electric transmission services across a multistate region. A member of Zone 17 argued that FERC's decision was arbitrary and capricious because it ignored the large imbalance between the minimal benefits and major costs of placing the wholesaler into Zone 17. The court found that FERC provided plausible and articulate reasons for why the costs and benefits were comparable, and thus that the Commission's cost-causation analysis was neither arbitrary nor capricious. It therefore denied the member's petition to review FERC's decision.