Number: RL34173
Title: Public Utility District No. 1 of Snohomish County v. FERC and the Mobile-Sierra Doctrine
Authors: Adam Vann, American Law Division 
Abstract: important implications for the authority of the Federal Energy Regulatory Commission (FERC) to review wholesale electricity and natural gas contracts under what is known as the "Mobile-Sierra Doctrine." The Doctrine mandates that FERC will not abrogate contracts (including wholesale natural gas and power contracts as well as transmission agreements) between private parties absent a showing that a change is necessary in the public interest. The Ninth Circuit decision, Public Utility District No. 1 of Snohomish County v. FERC, 471 F.3d 1053 (9th Cir. 2006), held that in the context of market-based rates, parties seeking reformation of contracts may not have to meet the Mobile-Sierra Doctrine requirement of demonstrating that the contract is contrary to the public interest, but rather need only to demonstrate that the contract is not "just and reasonable." The decision has been appealed to the U.S. Supreme Court; the Court heard arguments regarding the Snohomish decision in February 2008. This report reviews the Mobile-Sierra Doctrine and discusses the recent Ninth Circuit decision and its implications.
Pages: 7
Date: March 11, 2008