Louisiana Public Service Commission v. Federal Energy Regulatory Commission

(1) Whether, given the Supreme Court"s holdings that the Federal Power Act pre-empts inconsistent state ratemaking and requires state agencies to treat cost allocations made by the Federal Energy Regulatory Commission as reasonable, FERC may deny a refund authorized by FPA Section 206(b) based on the threat of a state regulatory commission to violate the supremacy clause by denying recovery of the surcharge needed to make the refund; and (2) whether - when the FERC grants a refund for an unjust and unreasonable holding-company cost allocation, pursuant to its policy to grant refunds for unjust and unreasonable rates, and numerous holding-company refund decisions support the policy - a U.S. court of appeals may, without scrutiny, accept FERC"s subsequent reversal of its refund decision based on its assertion that its previously cited policy never existed, and its reversal of key prior findings without explanation.