Windham Solar, LLC v. Public Utilities Regulatory Authority ( 2020 )


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    WINDHAM SOLAR, LLC v. PUBLIC UTILITIES
    REGULATORY AUTHORITY ET AL.
    (AC 41918)
    DiPentima, C. J., and Prescott and Devlin, Js.
    Syllabus
    The plaintiff, W Co., sought to sell to the defendant E Co. the energy and
    capacity from twenty-six solar electric generating facilities. E Co. agreed
    to purchase the energy, but not the capacity, and rejected W Co.’s offer
    to sell the energy at a rate equal to the anticipated avoided costs over
    the life of the proposed thirty year contract. W Co. then filed a petition
    with the defendant Public Utilities Regulatory Authority, pursuant to
    statute (§ 16-243a), seeking an order to compel E Co. to enter into the
    contract to purchase the energy and the capacity in accordance with
    W Co.’s proposed pricing. W Co. claimed that E Co. had failed to negotiate
    in good faith to arrive at a contract that fairly reflected the requirements
    of § 16-243a and the anticipated avoided costs over the life of the con-
    tract. The authority denied W Co.’s petition, concluding that E Co. did
    not need the capacity offered by W Co. and that the avoided cost of
    the proffered capacity was zero. The authority further determined that
    W Co.’s petition sought a declaratory judgment and held that it would
    open a separate proceeding to consider whether its regulations required
    modification or amendment. After W Co. appealed to the trial court,
    that court granted an unopposed request from the authority to remand
    the matter to the authority to consider the effect of recent rulings by
    the Federal Energy Regulatory Commission on the authority’s denial of
    W Co.’s petition. The court retained jurisdiction over W Co.’s appeal.
    The authority thereafter reversed its initial decision denying W Co.’s
    petition, concluding that W Co.’s claims should be addressed through
    the authority’s rule-making proceeding. The authority then filed a motion
    to dismiss W Co.’s appeal on the ground that the court lacked subject
    matter jurisdiction because W Co. was not aggrieved by the authority’s
    two decisions and that the appeal had become moot as a result of
    the authority’s reversal of its initial decision. The court granted the
    authority’s motion to dismiss, concluding that it lacked subject matter
    jurisdiction because W Co. had failed to plead facts sufficient to establish
    aggrievement and that W Co.’s appeal was moot as a result of the
    authority’s reversal of its initial decision. The court thereafter rendered
    judgment for the authority, and W Co. appealed to this court, claiming
    that the trial court improperly concluded that it did not have standing
    and that its claims were moot. Held that the trial court improperly
    granted the authority’s motion to dismiss W Co.’s petition, as W Co. had
    standing to appeal, having satisfied the requirements of the test for
    classical aggrievement, and its claims were not moot because there was
    practical relief that it could have been afforded by the trial court: W
    Co. had a specific, personal and legal interest in the issue at hand in
    that it sought an order from the authority to approve and to compel the
    execution of the power purchase agreement and alleged that it had been
    specially and injuriously affected by the authority’s refusal to compel
    E Co. to execute the contract, and, in determining that W Co.’s claims
    were moot as a result of the authority’s second decision, the trial court
    conflated notions of relief that may be afforded to W Co. with relief to
    which W Co. was entitled when it improperly addressed the merits of
    W Co.’s claims and discussed the authority’s options to address those
    claims directly or generically through the authority’s regulatory proceed-
    ing; moreover, the court could have afforded W Co. practical relief by
    reversing the authority’s decision to address the petition through its
    rule-making proceeding and remanding the matter with direction to
    consider the issues presented by the petition, or the court could have
    addressed issues the authority decided in its initial decision that it did
    not reverse or left unresolved in its subsequent decision.
    Argued November 19, 2019—officially released March 3, 2020
    Procedural History
    Appeal from the decision by the named defendant
    denying the plaintiff’s petition to compel the defendant
    Connecticut Light and Power Company, doing business
    as Eversource Energy, to enter into a certain contract
    for the sale of energy, brought to the Superior Court
    in the judicial district of New Britain, where the court,
    Huddleston, J., granted the motion to intervene as a
    defendant filed by the Office of Consumer Counsel;
    thereafter, the court granted the named defendant’s
    motion to remand the matter to the named defendant
    for further proceedings; subsequently, the court, Hon.
    Joseph M. Shortall, judge trial referee, granted the
    named defendant’s motion to dismiss and rendered
    judgment thereon, from which the plaintiff appealed to
    this court. Reversed; further proceedings.
    Thomas Melone, for the appellant (plaintiff).
    Seth A. Hollander, assistant attorney general, with
    whom was Robert L. Marconi, assistant attorney gen-
    eral, for the appellee (named defendant).
    Vincent P. Pace, assistant general counsel, with
    whom, on the brief, was Jennifer Galiette, senior coun-
    sel, for the appellee (defendant Connecticut Light and
    Power Company, doing business as Eversource
    Energy).
    Opinion
    DEVLIN, J. In this administrative appeal seeking regu-
    latory remedies with respect to a proposed contract for
    the sale of energy, the plaintiff, Windham Solar, LLC,
    appeals from the judgment of dismissal rendered by
    the trial court on the ground that it lacked subject
    matter jurisdiction. The plaintiff claims that the court
    erred in concluding that it did not have standing to
    bring this administrative appeal and that, even if it did,
    its claims were moot. We agree with the plaintiff and
    reverse the judgment of the trial court.
    The record reveals the following undisputed factual
    and procedural history. On January 22, 2016, the plain-
    tiff offered to sell to Connecticut Light & Power, doing
    business as Eversource Energy (Eversource),1 all of
    the energy and capacity from twenty-six solar electric
    generating facilities, all of which are qualifying facilities
    under the Public Utility Regulatory Policies Act of 1978
    (PURPA), 16 U.S.C. § 2601 et seq. See 16 U.S.C. § 796
    (17) (C) (2012). In response, Eversource acknowledged
    its obligation under General Statutes § 16-243a (b) (2)
    to purchase the power offered by the plaintiff,2 but
    agreed to purchase only the energy, not the capacity,
    and rejected the plaintiff’s offer to sell the energy at
    the rate equal to the anticipated avoided costs over the
    life of the proposed thirty year contract.
    As a result of Eversource’s refusal to accept the terms
    of its offer, the plaintiff filed a petition with the defen-
    dant Public Utilities Regulatory Authority (PURA),
    alleging that Eversource had failed to ‘‘negotiate in good
    faith to arrive at a contract which fairly reflects the
    provisions of [§ 16-243a] and the anticipated avoided
    costs over the life of the contract,’’ and sought an order
    from PURA compelling Eversource to enter into a thirty
    year contract to purchase energy and capacity in accor-
    dance with its proposed pricing.3
    On August 24, 2016, PURA issued a written decision
    denying the plaintiff’s petition to compel Eversource
    to enter into a contract on the plaintiff’s terms. PURA
    found, inter alia, that Eversource did not need the
    capacity offered by the plaintiff and that ‘‘the avoided
    cost of the proffered capacity is zero.’’ PURA further
    explained that ‘‘[the plaintiff’s] petition is properly
    understood as asking whether PURA’s long-standing
    implementation of . . . [PURPA], through § 16-243a
    and various orders of [PURA], is consistent with federal
    law.’’ PURA thus ‘‘interpreted [the plaintiff’s] petition as
    a request for a declaratory ruling pursuant to [General
    Statutes] § 4-176’’ and held that it would ‘‘open a sepa-
    rate proceeding to consider whether its regulations
    promulgated pursuant to . . . § 16-243a require modi-
    fication or amendment.’’
    The plaintiff thereafter appealed to the trial court
    from PURA’s August 24, 2016 decision. While that
    appeal was pending, the Federal Energy Regulatory
    Commission (FERC) issued an order construing PURPA
    to require a real-time price offering and also an option
    under which avoided costs are forecasted at the time
    the contract is executed. Consequently, PURA
    requested, and was granted, a voluntary and unopposed
    remand from the trial court, while the court retained
    jurisdiction over the plaintiff’s appeal, to consider the
    effect of the FERC ruling on PURA’s August 24, 2016
    decision.
    As a result of that reconsideration on remand, PURA
    issued a decision on January 10, 2018, reversing its
    August 24, 2016 decision, and holding that its earlier
    decision ‘‘incorrectly determined that PURPA’s require-
    ments are satisfied by real-time avoided cost offerings
    only, and that forecasted avoided cost rates are not
    necessary.’’ PURA further concluded ‘‘that its PURPA
    regulations should be amended to incorporate a fore-
    casted avoided cost rate methodology and other
    changes necessary as a result of electric restructuring
    and [the Federal Energy Policy Act of 2005], and [it] will
    address these issues in the [r]egulations [p]roceeding.’’
    PURA explained in a letter to the plaintiff’s counsel
    that it was ‘‘not required, as a matter of law, to resolve
    [the plaintiff’s claims] on a case-by-case basis . . .’’ but,
    rather, that it had ‘‘ ‘the statutory authority to revisit
    its implementation of FERC’s rules, either through a
    new rule making, a case-by-case adjudication, or other
    reasonable method.’ Allco Renewable Energy Ltd. v.
    Massachusetts Electric Co., [
    875 F.3d 64
    , 74 (1st Cir.
    2017)] . . . . [PURA] concludes that it should revisit
    its implementation of FERC’s rules through a regula-
    tions proceeding.’’ PURA thus determined that the
    issues presented by the plaintiff’s petition ‘‘should be
    addressed generically through PURA’s rule-making pro-
    ceeding.’’
    Dissatisfied with PURA’s decision, the plaintiff, on
    February 1, 2018, filed a motion to restore its case to
    the trial court docket, asking that its original appeal be
    permitted to proceed. PURA filed an objection to the
    plaintiff’s motion to restore its appeal to the docket,
    and a motion to dismiss the plaintiff’s appeal on the
    ground that the court lacked subject matter jurisdiction
    over the plaintiff’s appeal because the plaintiff was not
    aggrieved by PURA’s decisions and the plaintiff’s appeal
    had become moot as a result of PURA’s reversal of its
    August 24, 2016 decision. The plaintiff filed an objection
    to PURA’s motion to dismiss, arguing, inter alia, that,
    although PURA ‘‘overturned much of its [August 24,
    2016] decision, it concluded that it would not address
    the particular circumstances of [the plaintiff’s] petition,
    or address the relief sought by [the plaintiff].’’
    The trial court agreed with PURA that the plaintiff
    failed to plead facts sufficient to establish aggrievement
    and, thus, that the court lacked subject matter jurisdic-
    tion over the plaintiff’s appeal. The court further deter-
    mined that the plaintiff’s appeal was moot by virtue of
    PURA’s January 10, 2018 decision reversing its earlier
    determination that ‘‘facilities like [the] plaintiff’s are
    not entitled to sell their output to a utility at a forecasted
    avoided-cost rate. [PURA] has undertaken to develop
    via regulation a methodology for calculating such a
    rate.’’ The court thus granted PURA’s motion to dismiss,
    and this appeal followed.
    ‘‘As a preliminary matter, we set forth the standard
    of review. A motion to dismiss . . . properly attacks
    the jurisdiction of the court, essentially asserting that
    the plaintiff cannot as a matter of law and fact state a
    cause of action that should be heard by the court. . . .
    A motion to dismiss tests, inter alia, whether, on the
    face of the record, the court is without jurisdiction.
    . . . [O]ur review of the trial court’s ultimate legal con-
    clusion and resulting [decision to] grant . . . the
    motion to dismiss will be de novo. . . .
    ‘‘[I]t is the burden of the party who seeks the exercise
    of jurisdiction in his favor . . . clearly to allege facts
    demonstrating that he is a proper party to invoke judi-
    cial resolution of the dispute. . . . It is well established
    that, in determining whether a court has subject matter
    jurisdiction, every presumption favoring jurisdiction
    should be indulged. . . . Because a determination
    regarding the trial court’s subject matter jurisdiction
    raises a question of law, our review is plenary.’’ (Cita-
    tions omitted; internal quotation marks omitted.) Wil-
    cox v. Webster Ins., Inc., 
    294 Conn. 206
    , 213–14, 
    982 A.2d 1053
    (2009).
    The plaintiff first challenges the trial court’s determi-
    nation that it failed to demonstrate that it was aggrieved
    by PURA’s decisions and was thus without standing to
    appeal from them. ‘‘Standing is the legal right to set
    judicial machinery in motion. One cannot rightfully
    invoke the jurisdiction of the court unless [it] has . . .
    some real interest in the cause of action, or a legal or
    equitable right, title or interest in the subject matter of
    the controversy. . . . When standing is put in issue,
    the question is whether the [party] whose standing is
    challenged is a proper party to request an adjudication
    of the issue. . . . Standing requires no more than a
    colorable claim of injury; a [party] ordinarily establishes
    . . . standing by allegations of injury [that it has suf-
    fered or is likely to suffer]. Similarly, standing exists to
    attempt to vindicate arguably protected interests. . . .
    ‘‘Standing is established by showing that the party
    claiming it is authorized by statute to bring suit or is
    classically aggrieved. . . . The fundamental test for
    determining [classical] aggrievement encompasses a
    [well settled] twofold determination: first, the party
    claiming aggrievement must successfully demonstrate
    a specific, personal and legal interest in [the subject
    matter of the challenged action], as distinguished from
    a general interest, such as is the concern of all members
    of the community as a whole. Second, the party claiming
    aggrievement must successfully establish that this spe-
    cific personal and legal interest has been specially and
    injuriously affected by the [challenged action]. . . .
    Aggrievement is established if there is a possibility, as
    distinguished from a certainty, that some legally pro-
    tected interest . . . has been adversely affected.’’
    (Internal quotation marks omitted.) 
    Id., 214–15. Here,
    in considering the plaintiff’s claim that it was
    aggrieved by PURA’s decisions,4 the court concluded
    that, ‘‘[c]onstruing the complaint5 in a manner most
    favorable to [the] plaintiff, it may allege the ‘specific,
    personal and legal interest in the subject matter of the
    controversy,’ which is the first element necessary to
    make out classical aggrievement: ‘[The plaintiff] filed
    a petition . . . with [PURA] under . . . § 16-243a to
    compel and approve the execution of the power pur-
    chase agreement offered by [the plaintiff] to Ever-
    source. [PURA’s] final decision rejected [the plaintiff]’s
    petition.’ . . . No matter how generously construed,
    however, the complaint fails to allege facts supporting
    the second essential element of classical aggrievement,
    i.e., how that interest has been ‘specially and injuriously
    affected’ by [PURA’s] decision.’’ (Citation omitted; foot-
    note added.)
    On the basis of our review of the plaintiff’s pleadings,
    we conclude that the plaintiff satisfies the requirements
    of classical aggrievement and, therefore, has standing
    to appeal from the decisions of PURA. First, it cannot
    reasonably be disputed that the plaintiff has a specific,
    personal and legal interest in the issue at hand because
    its petition to PURA sought an order to approve and
    compel the execution of the power purchase agreement
    under which the plaintiff offered to sell to Eversource
    all of the energy and capacity from twenty-six solar
    electric generating facilities to Eversource but which
    Eversource rejected in part. The plaintiff likewise has
    alleged that its specific legal interest in the petition to
    compel the execution of the contract has been specially
    and injuriously affected by PURA’s refusal to compel
    Eversource to execute the contract. Because we con-
    clude that the plaintiff has satisfied the requirements
    of the test for demonstrating classical aggrievement, it
    has standing to appeal from PURA’s decisions.
    The plaintiff also challenges the trial court’s dismissal
    of its claims as moot. ‘‘[I]t is not the province of [the]
    courts to decide moot questions, disconnected from the
    granting of actual relief or from the determination of
    which no practical relief can follow. . . . When . . .
    events have occurred that preclude [the] court from
    granting any practical relief through its disposition of
    the merits, a case has become moot.’’ (Internal quota-
    tion marks omitted.) Abel v. Johnson, 
    194 Conn. App. 120
    , 149–50, 
    220 A.3d 843
    (2019), cert. granted on other
    grounds, 
    334 Conn. 917
    ,       A.3d     (2020). Our review
    of the trial court’s conclusion that the plaintiff’s claims
    are moot is plenary. 
    Id., 150. Here,
    PURA argues, and the trial court agreed, that
    the plaintiff’s appeal was rendered moot as a result of
    PURA’s January 10, 2018 reversal of its August 24, 2016
    decision rejecting the pricing and terms of the plaintiff’s
    offer to Eversource. We disagree.
    In ruling on the plaintiff’s petition on August 24, 2016,
    PURA explained that the petition ‘‘is properly under-
    stood as asking whether PURA’s long-standing imple-
    mentation of . . . [PURPA], through . . . § 16-243a
    and various orders of [PURA], is consistent with federal
    law. Upon review of the entire record of this proceeding,
    [PURA] interpreted [the plaintiff’s] petition as a request
    for a declaratory ruling pursuant to § 4-176.’’ Thus, when
    PURA reversed its August 24, 2016 decision, it did so in
    the limited context of its having ‘‘treated [the plaintiff’s]
    petition as asking whether PURA’s long-standing imple-
    mentation of PURPA was consistent with federal law.’’
    Although that is certainly one aspect of the plaintiff’s
    petition, PURA did not address the substance of the
    plaintiff’s petition per se, as it did not contemplate the
    entirety of the plaintiff’s requested relief. PURA articu-
    lated that it was ‘‘not required, as a matter of law, to
    resolve [the] issues [raised by the plaintiff’s petition]
    on a case-by-case basis’’ but that it was within its rights
    to address the plaintiff’s petition ‘‘generically though
    PURA’s rule-making proceeding.’’ PURA’s articulation
    underscores the fact that PURA’s reversal of its August
    24, 2016 decision did not render the plaintiff’s appeal
    from that decision moot.
    In concluding that the plaintiff’s claims became moot
    as a result of PURA’s January 10, 2018 decision, the
    trial court specifically discussed PURA’s authority to
    address the plaintiff’s claims either generically through
    the regulatory proceeding or directly. In so doing, the
    trial court was addressing the propriety of PURA’s deci-
    sion and, thus, the merits of the plaintiff’s claims. The
    analysis that the trial court conducted to determine
    whether the plaintiff’s claims were moot was improper,
    however, because, ‘‘[i]n determining mootness, the dis-
    positive question is whether a successful appeal would
    benefit the plaintiff or defendant in any way.’’ (Internal
    quotation marks omitted.) Estela v. Bristol Hospital,
    Inc., 
    165 Conn. App. 100
    , 107, 
    138 A.3d 1042
    , cert.
    denied, 
    323 Conn. 904
    , 
    150 A.3d 681
    (2016). The avail-
    ability of practical relief to a party for his or her claims
    is a question separate from whether the court will ulti-
    mately determine that it is appropriate to provide that
    party with any relief that is available to him or her. See
    Iacurci v. Wells, 
    108 Conn. App. 274
    , 276, 
    947 A.2d 1034
    (2008) (court must determine whether case is moot
    before addressing merits of defendants’ appeal). Indeed,
    determining whether practical relief is available to a
    party necessarily precedes a court’s assessing the mer-
    its of that party’s claims because ‘‘[i]f a case has become
    moot, [the court] lack[s] subject matter jurisdiction to
    address its merits.’’ (Emphasis added.) State v. Walc-
    zyk, 
    76 Conn. App. 169
    , 172, 
    818 A.2d 868
    (2003). Thus,
    in the present case, the trial court improperly conflated
    the notions of relief that may afforded to the plaintiff
    and relief to which the plaintiff is entitled.
    Although the plaintiff may not be entitled to the relief
    that it seeks, there is practical relief that the trial court
    may afford to it. For instance, the court may reverse
    PURA’s decision to address the plaintiff’s petition
    generically through its rule-making proceeding and
    remand the matter with direction to consider specifi-
    cally the issues presented by the plaintiff’s petition. The
    court may also address issues decided by PURA in its
    August 24, 2016 decision that it did not reverse in its
    January 10, 2018 decision. In its appeal to the trial court,
    the plaintiff claimed that PURA improperly made fac-
    tual findings, such as the finding that Eversource did
    not have a capacity obligation, without affording the
    plaintiff either the opportunity to conduct discovery or
    an evidentiary hearing. PURA’s January 10, 2018 deci-
    sion did not address those findings, leaving the plain-
    tiff’s claims regarding them unresolved. Likewise,
    PURA’s January 10, 2018 decision did not address the
    plaintiff’s claim that Eversource violated its obligation
    under § 16-243a (d) to negotiate in good faith and its
    argument that such obligation was ‘‘independent of
    whatever schedules have been, or should have been,
    published under § 16-243a (c).’’
    It is not the role of this court, at this juncture, to
    determine the merits of the plaintiff’s claims for relief.
    The limited issue with which we are faced is whether
    the trial court properly concluded that it did not have
    subject matter jurisdiction over the plaintiff’s claims.
    Because there was practical relief that the trial court
    could have afforded, we conclude that the plaintiff’s
    claims were not moot and, thus, that the court has
    subject matter jurisdiction over them. Accordingly, the
    trial court erred in granting PURA’s motion to dismiss.
    The judgment is reversed and the case is remanded
    with direction to deny PURA’s motion to dismiss and
    for further proceedings according to law.
    In this opinion the other judges concurred.
    1
    Eversource and the Office of Consumer Counsel also are defendants in
    this proceeding.
    2
    To implement the provisions of PURPA, the Connecticut legislature
    enacted § 16-243a. Section 16-243a (b) provides in relevant part: ‘‘Each elec-
    tric public service company, municipal electric energy cooperative and
    municipal electric utility shall: (1) Purchase any electrical energy and capac-
    ity made available, directly by a private power producer or indirectly under
    subdivision (4) of this subsection . . . .’’
    Subsection (d) of § 16-243a provides: ‘‘When any person, firm or corpora-
    tion proposes to enter into a contract to sell energy and capacity as a private
    power producer, an electric public service company, municipal electric
    energy cooperative or municipal electric utility shall respond promptly to
    all requests and offers and negotiate in good faith to arrive at a contract
    which fairly reflects the provisions of this section and the anticipated avoided
    costs over the life of the contract. Upon application by a private power
    producer, the authority may approve a contract which provides for payment
    of less than the anticipated avoided costs if, considering all of the provisions,
    the contract is at least as favorable to the private power producer as a
    contract providing for the full avoided costs. The contract may extend for
    a period of not more than thirty years at the option of the private power
    producer if it has a generating facility with a capacity of at least one hun-
    dred kilowatts.’’
    3
    The plaintiff sought a thirty year rate in order to attract investors to
    the project.
    4
    The trial court concluded that ‘‘it is clear from a careful reading that
    the complaint makes no claim that [the] plaintiff is statutorily aggrieved by
    [PURA’s] decision.’’ The plaintiff now challenges that conclusion. Because
    we conclude that the plaintiff is classically aggrieved by PURA’s decisions,
    we need not address the plaintiff’s claim that it also is statutorily aggrieved.
    5
    To be sure, the abnormal and convoluted format of the plaintiff’s com-
    plaint presented difficulty in identifying the factual allegations upon which
    it was relying in asserting aggrievement.
    

Document Info

Docket Number: AC41918

Filed Date: 3/3/2020

Precedential Status: Precedential

Modified Date: 3/2/2020