Sierra Club v. Public Service Commission of Wisconsin

Court affirmed the Public Service Commission of Wisconsin’s issue of a certificate of authority that authorized Wisconsin Electric Power Company and Wisconsin Gas LLC to build and operate two liquefied natural gas (“LNG”) peaking facilities.

The court of appeals of Wisconsin affirmed the lower court decision, finding no evidence supporting Sierra Club’s claim that the final decision was improperly made by the Public Service Commission staff rather than the commissioners. It reasoned that the commissioners reviewed the full record, made determinations at an open meeting, and authorized staff only to draft the final order consistent with their discussions. The Court also rejected Sierra’s argument that the Commission applied an unpromulgated five-percent reserve margin as a rule, clarifying that this was a factual matter for a planning targets used for a specific case, not a binding general policy requiring rulemaking. On factual disputes, like the need for the project based on demand forecasts and the consideration of existing infrastructure, the Court deferred to the Commission’s technical judgment and concluded its findings were supported by substantial evidence. Finally, the Court held that the Commission appropriately applied the Energy Priorities Law, such that their finding of no cost-effective, technically feasible alternatives superior to the proposed LNG facilities was supported by the record.