Narragansett Electric Co. v. Public Utilities Commission

Summary

The Rhode Island Supreme Court reviewed a Public Utilities Commission order requiring Narragansett Electric Company to refund approximately $1.65 million in excess transmission charges to ratepayers. The court held that the Utility Restructuring Act's performance-based ratemaking provisions entitled ratepayers to the refund because the company's revenues compensated it for the relevant transmission costs and its return on equity did not trigger an additional recovery. The court affirmed the commission's decision, denied the petition for certiorari, and quashed the writ.

Holdings

1. Under the Utility Restructuring Act, an electric distribution company that received the authorized performance-based rate increases and did not experience a return on equity below 6 percent was not entitled to retain an additional refund for transmission costs; the refund belonged to the ratepayers.
2. The commission's finding that Narragansett was fully compensated for its 1997 and 1998 expenses, including increased transmission costs, was fairly and substantially supported by the evidence and did not exceed the commission's authority or constitute illegal, arbitrary, or unreasonable action.
3. The court defers to the commission's factual findings and administrative discretion but reviews statutory interpretations de novo.

Questions Presented

1. Whether the Utility Restructuring Act permitted Narragansett to retain a refund of excess transmission charges when it had received performance-based rate increases and had not experienced a return on equity below the statutory minimum.
2. Whether the Public Utilities Commission's factual findings and decision ordering the refund to ratepayers were lawful, reasonable, and supported by substantial evidence.
3. Whether the court should apply de novo review to the commission's interpretation of the Utility Restructuring Act while deferring to its factual findings.

Disposition

affirmed