Pierce Atwood has been a "go to" firm for many years for clients litigating energy-related matters in federal and state courts and before regulatory agencies. Our energy litigation practice brings together our general expertise in complex litigation and appellate practice and specific expertise in state and federal energy law and regulation. In particular, because of our long and successful history representing public utilities and other energy-related entities, Pierce Atwood attorneys in recent years have been lead litigation counsel in a series of multi-million dollar energy related lawsuits, involving:

  • Power purchase agreement disputes and rate challenges
  • Ownership and contract disputes
  • Transmission siting, permitting and referendum related disputes
  • Judicial review of federal and state permits
  • Bankruptcy contract rejections and filed-rate doctrine disputes
  • Nuclear decommissioning and spent fuel storage issues
  • Retail supply and marketing practices related class actions
  • State and local tax matters

Highlights of our experience in this area include successfully representing the State of California in three multi-billion dollar proceedings before the U.S. Supreme Court, the U.S. Courts of Appeals for the Second and Ninth Circuits, the U.S. District Court for the Southern District of New York and the Federal Energy Regulatory Commission; representing three nuclear power plants to recover over $200 million from the DOE in the Federal Court of Claims; and convincing the Maine Supreme Judicial Court to strike down as unconstitutional a proposed referendum targeting a major transmission project in New England.

Representative Experience

We successfully defended Central Maine Power Company’s standards for planning local transmission systems before the Maine Public Utilities Commission (PUC). In a year-long investigation into the appropriate standards for Maine’s electric utilities to use in planning their local transmission systems, we defended the standards that CMP has historically followed. The PUC Staff rejected most of CMP’s planning standards as unreasonable, but the Commission largely rejected the Staff’s view and affirmed that CMP’s planning standards reflect good utility practice, are reasonable and will help ensure that CMP’s customers have a safe and reliable transmission system. CMP is pleased with this outcome as it vindicates the Company’s position and will hopefully bring certainty to the planning of future transmission projects in Maine.

CMP Clarification of Standards for Future Transmission Projects

The United States Court of Appeals for the DC Circuit vacated FERC's decision to withhold over-collections payments from our clients. Agreeing with seven firm clients, the court found that FERC's directive that PJM recoup over $37 million in previously ordered refunds associated with transmission line loss overpayments was arbitrary and capricious. We argued that, because financial market participants pay transmission line loss charges, and for the period at issue also paid for the transmission system through the payment of transmission charges, they were entitled to a fair share of the over-collections paid back to all other participants. The court agreed and found unreasonable FERC's decision to deny an allocation to financial participants while they were paying transmission charges and also challenged FERC's decision to first order such payments and then almost two years later change its mind and seek to claw back the refund amounts. The Court remanded to FERC for reconsideration and explanation. Black Oak Energy, LLC v. FERC, No. 08-1386 (Aug. 6, 2013). The remand also led PJM to agree to a stay of Delaware state court proceedings initiated by PJM to collect the amounts from the three of the marketers.

Court Orders FERC Over-collections Repaid

We represent energy companies in all types of enforcement proceedings before FERC—from investigations to trials. We also routinely provide audit and regulatory compliance training.

Enforcement Proceedings Before FERC

We won a precedent setting appeal before the Texas Public Utility Commission involving a decision of the Electric Reliability Counsel of Texas (ERCOT) on behalf of our clients West Oaks Energy and Longhorn Energy. This PUCT decision rejected a retroactive market resettlement that had been ordered by ERCOT, resulting in a $10 million price reversal for our clients and others. In this case, ERCOT adjusted settled market prices, on a retroactive basis, for the December 1, 2010 through February 1, 2011 period , claiming there had been a “significant software or data error” that justified the price change. In the appeal to the PUCT we demonstrated that in fact there was no software or data error, simply an unhappiness on ERCOT’s part with how its own market design was functioning. The PUCT, by unanimous vote, agreed with us and also agreed that while prospective rule changes are needed from time to time it is extremely harmful to market participants, and to market confidence, to try and make these changes on a retroactive basis. This decision has also led to a potential reversal of a second market resettlement that was ordered by ERCOT. In that second case, and on behalf of firm client XO Energy TX, we had challenged an almost identical retroactive market resettlement as unlawful and contrary to system protocols. This second resettlement involved over $2.7 million. At ERCOT’s request this matter is now being held in abeyance until the next ERCOT Board meeting when it will be reconsidered. We are delighted with these outcomes and believe the PUCT decision is likely to put an end to unwarranted, after the fact price changes in the ERCOT market. We believe it also establishes very important precedent for all ISO electricity markets.

Precedent Setting Appeal Before Texas Public Utility Commission