MORGAN STANLEY v. PUBLIC UTILITY DIST. NO. 1

Nos. 06-1457, 04-1462.

128 S.Ct. 2733 (2008)

554 U.S. 527

171 L.Ed.2d 607

MORGAN STANLEY CAPITAL GROUP INC., Petitioner, v. PUBLIC UTILITY DISTRICT NO. 1 OF SNOHOMISH COUNTY et al. American Electric Power Service Corporation, et al., Petitioners, v. Public Utility District No. 1 of Snohomish County, Washington, et al.

Supreme Court of United States.

Decided June 26, 2008.


Attorney(s) appearing for the Case

Edwin S. Kneedler , for the respondent Federal Energy Regulatory Commission, in support of petitioners.

Walter Dellinger , for petitioners.

Christopher J. Wright , for respondents.

Paul D. Clement , Solicitor General, Counsel of Record, Department of Justice, Washington, D.C., for Federal Energy Regulatory Commission.

Donald B. Ayer , Counsel of Record, Clark Evans Downs , Lawrence D. Rosenberg , Kenneth B. Driver , Shay Dvoretzky , Juliet J. Karastelev , Jones Day, Washington, DC, for Petitioner American Electric Power Service Corp., Robert F. Shapiro , Merrill L. Kramer , Chadbourne & Parke LLP, Washington, DC, for Petitioner Allegheny Energy Supply Company, LLC, Walter Dellinger , Counsel of Record, Sri Srinivasan , Mark S. Davies , Ryan W. Scott , Admitted only in Illinois, O'Melveny & Myers LLP, Washington, DC, Paul J. Pantano, Jr. , Michael A. Yuffee , McDermott Will & Emery LLP, Washington, DC, Eric F. Grossman , Zachary D. Stern , Morgan Stanley Capital Group Inc., New York, NY, 10019 Counsel for Petitioner Morgan Stanley Capital Group Inc.

Richard G. Taranto , Farr & Taranto, Washington, DC, for Nevada Power Co. and Sierra Pacific Power Co., Christopher J. Wright , Counsel of Record, Harris, Wiltshire & Grannis LLP, Washington, DC, for Snohomish County PUD No. 1.

Paul J. Kaleta , Nevada Power Company, Las Vegas, NV, Roger Berliner , Berliner Law PLLC, Washington, DC, for Nevada Power Co. and Sierra Pacific Power Co.

Eric P. Witkoski , Office of the Nevada Attorney General, Bureau of Consumer Protection, Las Vegas, NV, Eric Christensen , Everett, WA, John E. McCaffrey , David D'Alessandro , Kelly A. Daly , Stinson Morrison Hecker LLP, Washington, DC, for the Office of the Nevada Attorney General, Bureau of Consumer Protection.

Randolph Lee Elliott , Counsel of Record, Milton J. Grossman , Jeffrey K. Janicke , Miller, Balis & O'Neil, P.C., Washington, DC, for Respondent Golden State Water Company.

Randolph L. Wu , Mary F. McKenzie , Harvey Y. Morris , Elizabeth M. McQuillan , Public Utilities Commission of the State of California, San Francisco, CA, Counsel for the Public Utilities Commission of the State of California.

William J. Kayatta, Jr. (Counsel of Record), Jared S. des Rosiers , Louise K. Thomas , Clifford H. Ruprecht , Catherine R. Connors , Lucus A. Ritchie , Pierce Atwood LLP, Portland, ME, for California Electricity Oversight Board.

Cynthia A. Marlette , General Counsel, Robert H. Solomon , Lona T. Perry , Senior Attorney, Federal Energy Regulatory Commission, Washington, D.C., Paul D. Clement , Solicitor General, Counsel of Record, Edwin S. Kneedler , Deputy Solicitor General, Eric D. Miller , Assistant to the Solicitor General, Department of Justice, Washington, D.C., for Federal Energy Regulatory Commission.

Eric F. Grossman , Zachary D. Stern , Morgan Stanley Capital Group Inc., New York, NY, Paul J. Pantano, Jr. , Michael A. Yuffee , McDermott Will & Emery LLP, Washington, DC, Walter Dellinger , Counsel of Record, Sri Srinivasan , Mark S. Davies , O'Melveny & Myers LLP, Washington, DC, for Petitioner.

Robert F. Shapiro , Merrill L. Kramer , Chadbourne & Parke LLP, Washington, D.C., for Petitioner Allegheny Energy Supply Company, LLC.

Donald B. Ayer (Counsel of Record), Clark Evans Downs , Lawrence D. Rosenberg , Kenneth B. Driver , Shay Dvoretzky , Juliet J. Karastelev , Jones Day, Washington, D.C. for Petitioner American Electric Power Service Corp.

Keith R. McCrea , Kent L. Jones , William H. Penniman , Sutherland Asbill & Brennan LLP, Washington, D.C., for Petitioner Calpine Energy Services, L.P.

Michael J. Gergen , Jared W. Johnson , Latham & Watkins LLP, Washington, D.C., for Respondent (in support of Petitioners) Mirant Energy Trading, LLC.


Under the Mobile-Sierra doctrine, the Federal Energy Regulatory Commission (FERC or Commission) must presume that the rate set out in a freely negotiated wholesale-energy contract meets the "just and reasonable" requirement imposed by law. The presumption may be overcome only if FERC concludes...

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