Summary
This Seventh Circuit opinion addresses whether plaintiffs have standing to seek a preliminary injunction against Indiana utility regulators to block a state law granting incumbent electric companies a right of first refusal for interstate transmission projects. The court vacates the district court's injunction, holding that the requested relief would not redress the plaintiffs' alleged injuries because the state commission lacks enforcement authority over the regional transmission operator that actually assigns construction contracts. The decision emphasizes Article III standing requirements, particularly redressability, and declines to adopt a novel theory of standing based on unbriefed statutory interpretations.
Topics
Practice areas
Questions Presented
- Whether plaintiffs have Article III standing to challenge the Indiana right‑of‑first‑refusal statute
- Whether the preliminary injunction is redressable given the IURC’s limited enforcement authority
Holdings
- Plaintiffs lack standing because the IURC Commissioners have no authority to enforce the statutory right of first refusal, and the injunction therefore cannot redress the alleged injury.
- The injunction cannot redress plaintiffs’ alleged injury because the IURC lacks enforcement authority over the statutory provision; thus the injunction is ineffective and must be vacated.
Key quotations
“We vacate the preliminary injunction and remand the case to the district court for further proceedings consistent with this opinion.” (at *32)
Factual background
Plaintiffs seek to build interstate electricity transmission lines in Indiana. Indiana enacted a right‑of‑first‑refusal statute (HEA 1420) giving incumbent utilities priority to construct new projects approved by the Regional Transmission Organization (MISO). Plaintiffs obtained a preliminary injunction against the IURC Commissioners to stop enforcement of the statute, alleging a dormant Commerce Clause violation.
Procedural history
The district court granted a preliminary injunction enjoining the Indiana Utility Regulatory Commission (IURC) Commissioners from enforcing Indiana Code § 8‑1‑38‑9 (HEA 1420). Plaintiffs appealed, arguing lack of standing. The Seventh Circuit reviewed the standing and redressability issues and vacated the injunction.
Remand instructions
Remand to the district court for further proceedings consistent with this opinion.