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Environmental & Energy,
9th U.S. Circuit Court of Appeals

Sep. 11, 2020

Fight over utility wildfire bailout goes to the 9th Circuit

Utility customers have taken their challenge to Assembly Bill 1054’s wildfire fund up to the 9th U.S. Circuit Court of Appeals. PG&E customers Alex Cannara and Gene Nelson are appealing U.S. judge James Donato’s dismissal of the lawsuit in June, finding that he lacked jurisdiction over a ratesetting matter under the Johnson Act. The appellate brief argues the legislative history of the Johnson Act was intended to protect customers from abuses by monopolies. The Act was supposed to be understood as a statutory validity challenge instead of a challenge to ratemaking, customers say.

Customers asked the 9th U.S. Circuit Court of Appeals on Thursday to block California's efforts to allow utilities to pass on billion of dollars in wildfire liabilities to ratepayers.

Maria C. Severson and Michael J. Aguirre, lawyers for the customers, said that a trial judge should have allowed their lawsuit challenging the constitutionality of a controversial wildfire funding bill to proceed.

A ...

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