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Arkansas Electric Energy Consumers v. Federal Energy Regulatory Commission

Petition for review of FERC opinions approving merger of two energy systems denied; petitioners failed to show that decision was unreasonable, not based on substantial evidence or otherwise unclear in its reasoning; decision was consistent with public interest standard for mergers.

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Argued April 8, 2002

On Petitions for Review of Orders of the Federal Energy Regulatory Commission

Arkansas Electric Energy Consumers and others*fn1 petition for review of Opinion Nos. 385 and 385-A of the Federal Energy Regulatory Commission. In those opinions the Commission approved the merger of the Entergy and Gulf States systems under s 203 of the Federal Power Act (“FPA”), 16 U.S.C. s 824b, and an amendment to the Entergy System Agreement under FPA s 205, 16 U.S.C. s 824d, to add Gulf States as an Entergy Operating Company upon approval and consummation of the merger. See Entergy Servs., Inc., Opinion No. 385, 65 FERC p 61,332 (1993) (“Opinion No. 385″); Entergy Servs., Inc., Opinion No. 385A, 67 FERC p 61,192 (1994) (“Opinion No. 385-A”). Petitioners principally contend that Opinion No. 385 violates s 205′s prohibition against undue discrimination because the System Agreement treats Gulf States, which has no history of cost-sharing with respect to the Entergy system generating facilities, similarly to the four electric operating companies (“EOCs”)–Arkansas Power & Light Company, Louisiana Power & Light Company, Mississippi Power & Light Company, and New Orleans Public Service, Inc.–which have long cost-sharing histories. Petitioners also contend that the Commission erred in not holding an evidentiary hearing on wholesale electric competition before approving the merger. We deny the petition.

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