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Arippa v. Pennsylvania Public Utility Commission

Public Utility Commission did not abuse discretion by refusing to consider alleged environmental harms resulting from utility company merger, as such issues rest with EPA or state Department of Environmental Protection.

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Argued: November 7, 2001

ARIPPA, Mid-Atlantic Power Supply Association (Mid-Atlantic), York County Solid Waste and Refuse Authority (York County), Clean Air Council (Clean Air) and Citizen Power, Inc., (Citizen) appeal from two orders of the Pennsylvania Public Utility Commission (Commission): the first dated May 24, 2001, granting the application filed by GPU, Inc. and its Pennsylvania public utility subsidiaries, Metropolitan Edison Company (Met-Ed) and Pennsylvania Electric Company (Penelec) (collectively, GPU Energy) and FirstEnergy Corp. for the merger of GPU into FirstEnergy and the second dated June 20, 2001, approving the “Settlement Stipulation” proposed by GPU Energy and First Energy joined by the Consumer Advocate (as well as other signatories to the Settlement Stipulation who are not parties to this appeal)*fn3 and accepting a deferral accounting mechanism as a means to recover their increased costs above the rate cap imposed in return for recovering stranded costs under the Electricity Generation Customer Choice and Competition Act (Competition Act).*fn4

This case involves two separate proceedings that were consolidated before the Commission and have been consolidated on appeal. One proceeding involves the merger between FirstEnergy and GPU Energy and its opposition by Clean Air and Citizen. The second proceeding involves a petition filed by FirstEnergy and GPU Energy in which they sought expedited Commission approval of what they denominated a “Settlement Stipulation.” That Stipulation authorized increased revenues through an interim deferral tracking mechanism for their provider of last resort generation service. ARIPPA, Mid-Atlantic, York County, Clean Air and Citizen opposed the Stipulation and the tracking mechanism.

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