FERC Filings
EPSA's Motion to Intervene and Comments in Support of Sempra Petition
Comments in Support of Declaratory Order
EPSA respectfully submits that Sempra’s Petition is both well-supported by fundamental legal principles and precedent and vitally important from a broader policy perspective. At this critical juncture in the ongoing effort to establish efficient and reliable wholesale electricity markets it is imperative that FERC reaffirm its exclusive jurisdiction over pricing-related issues arising out of commercial activity in those interstate wholesale markets. The extensive regulatory proceedings and related discovery, as well as federal judicial decisions related to the California crisis, indicate that it is highly inappropriate and unnecessary for any allegedly aggrieved party to raise these same issues in a state court forum.
Congress did not authorize state court juries to address pricing disputes that arise out of wholesale market activity; rather, due to the inherently interstate nature of wholesale electricity markets, Congress and the courts have expressly upheld the Commission’s exclusive jurisdiction over such activity. As Sempra correctly explains, and as several courts have held, these matters fall squarely within the Commission’s exclusive jurisdiction. Furthermore, subjecting wholesale market activities to both Commission jurisdiction and U.S. Court of Appeals review and to the scrutiny of state court juries considering multi-billion dollar treble damage verdicts will inevitably have a chilling effect on market participation and vital investment capital. Clearly, that is not in the public interest and could seriously jeopardize the reliability of electricity supply, as well as the economic well-being of the state of California.
In sum, cases such as the class action lawsuit against Sempra at issue in this proceeding raise serious concerns about the finality of dispute resolution due to the specter of repetitive, multi-jurisdictional proceedings. In fact, this uncertainty could threaten to destabilize and undermine the energy market as a whole. Sempra’s argument is fundamental, straightforward and compelling: Congress has conferred upon the Commission exclusive jurisdiction over the wholesale electricity markets, and it is in the public interest for the Commission to vigorously defend that jurisdiction against incursion.