Justia Massachusetts Supreme Court Opinion Summaries

Fitchburg appealed from a ruling of the department requiring it to reimburse its customers over $4.6 million in gas supply costs incurred during the 2007-2008 and 2008-2009 purchasing seasons. The court concluded that the department's determination that Fitchburg's purchasing plans required preapproval was erroneous, as the plans incorporated only traditional risk management techniques that had previously never been subject to the department's preapproval. Penalizing Fitchburg for failing to seek preapproval, when such preapproval was never required, exceeded the department's authority and amounted to an error of law. With respect to the allegedly imprudent purchases, the court agreed with the department that one of the purchases at issue was unreasonable and imprudent, but held that the department's findings of imprudence with regard to the balance of the purchases in 2007 and 2008 were not supported by substantial evidence. View "Fitchburg Gas and Electric Light Co. v. Dept. of Public Utilities" on Justia Law

Five months after the Department of Public Utilities ("department") approved the request of Bay State Gas Company ("Bay State") to sell and transfer all the common stock of its subsidiary Northern Utilities, Inc. ("Northern"), Bay State filed a petition for a general increase in its natural gas distribution rates. The department denied that request while allowing Bay State a general rate increase of $19 million. Bay state appealed the department's decision asserting several points of error. The court affirmed the department's decision and held that the department expressly left open the "appropriate ratemaking treatment" to be afforded the operational cost impacts associated with the sale of Northern. Therefore, it was appropriate to address proper treatment of once-shared functions in light of Bay State's assertions during the section 96 Northern proceeding. The court rejected Bay State's other assertions and remanded to the county court where a judgment was to be entered affirming the decisions and order of the department.