Articles Posted in Energy, Oil and Gas

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Atmos Energy Corporation, a local distributing company, contracted with independent gas marketing companies to purchase natural gas then delivered gas to customers through local pipelines. Following an audit, Missouri Public Service Commission (PSC) staff indicated that Atmos had failed to comply with affiliate transaction rules by failing to document properly the fair market value and fully distributed cost of its transactions with its affiliate, Atmos Energy Marketing LLC (AEM). The staff then proposed a disallowance regarding Atmos' transactions with AEM. After an evidentiary hearing, the PSC found compliance with the affiliate transaction rules and rejected the proposed disallowances. The Office of Public Counsel (OPC) appealed, and the court of appeals affirmed. The Supreme Court reversed, holding that the PSC erred in relying upon a presumption of prudence in rejecting staff and OPC's proposed disallowance regarding Atmos's transactions with AEM. Remanded.View "Office of Pub. Counsel v. Mo. Pub. Serv. Comm'n" on Justia Law