Fitchburg Gas & Elec. Light Co. v. Dep’t of Pub. Utils.

The Department of Public Utilities imposed on Petitioners, electric companies, monetary assessments for the Storm Trust Fund (“assessment”) pursuant to Mass. Gen. Laws ch. 25, 12P, 18, which specifically prohibited Petitioners from seeking recovery of the assessment in any rate proceeding. Petitioners challenged the constitutionality of the recovery prohibition, both as required by the statute and impose by the Department’s order, claiming it was an unconstitutional taking. The Supreme Judicial Court affirmed the Department’s order, holding (1) the mere obligation to pay the assessment, regardless of whether recovery was permitted or precluded, did not rise to the level of a compensable per se taking; (2) Petitioner’s claim that the assessment constituted a taking by way of a confiscatory rate was inadequate on the facts as presented to the Court; and (3) the Department’s order imposing the assessment and articulating the recovery prohibition did not constitute a regulatory taking because the order simply required Petitioners to pay an assessment that served a legitimate public purpose and did not interfere with Petitioners’ overall property rights.View "Fitchburg Gas & Elec. Light Co. v. Dep’t of Pub. Utils." on Justia Law