Entergy Louisiana, Inc. v. Louisiana Public Service Commission: Preemptive Effect of Federal Energy Regulatory Commission Orders

Michael V. Seitzinger

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Entergy Louisiana, Inc. v. Louisiana Public Service Commission: Preemptive Effect of Federal Energy Regulatory Commission Orders (CRS Report for Congress)

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Release Date	July 1, 2003
Report Number	RS21559
Report Type	Report
Authors	Michael V. Seitzinger, American Law Division
Source Agency	Congressional Research Service

Summary:

In Entergy Louisiana v. Louisiana Public Service Commission the U.S. Supreme Court faced the issue of whether a Federal Energy Regulatory Commission (FERC) tariff delegating discretion to the regulated entity to determine precise cost allocation pre-empted a FERC order that had judged those costs imprudent. Reversing the Louisiana Supreme Court, the U.S. Supreme Court held that the FERC order pre-empted any attempt at modification and that, therefore, the costs determined as imprudent could not be allowed. The case continues the line of Supreme Court cases holding that, when FERC approves a just and reasonable rate, a state agency may not reconsider the rate.

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Entergy Louisiana, Inc. v. Louisiana Public Service Commission: Preemptive Effect of Federal Energy Regulatory Commission Orders (CRS Report for Congress)