Opinion

Pacific Gas & Electric Co. v. Federal Energy Regulatory Commission

  • 326 F.3d 243
  • 356 U.S. App. D.C. 16
  • 2003 U.S. App. LEXIS 7936
  • 2003 WL 1937107
Court
Court of Appeals for the D.C. Circuit
Filed
Apr 25, 2003
Status
Published
Author
Williams
On the bench
Randolph, Rogers, Williams
Cited by
0 cases
Authority
More cited than 9.7%

The opinion

Notice: This opinion is subject to formal revision before publication in the

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United States Court of Appeals

FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued March 13, 2003 Decided April 25, 2003

No. 02-1002

PACIFIC GAS AND ELECTRIC COMPANY,

PETITIONER

v.

FEDERAL ENERGY REGULATORY COMMISSION,

RESPONDENT

NORTHERN CALIFORNIA POWER AGENCY, ET AL.,

INTERVENORS

On Petition for Review of Orders of the

Federal Energy Regulatory Commission

John S. Moot argued the cause for petitioner. With him on

the briefs was Kathryn Kavanagh Baran.

Timm Abendroth, Attorney, Federal Energy Regulatory

Commission, argued the cause for respondent. With him on

Bills of costs must be filed within 14 days after entry of judgment.

The court looks with disfavor upon motions to file bills of costs out

of time.

2

the brief were Cynthia A. Marlette, General Counsel, and

Dennis Lane, Solicitor.

Daniel I. Davidson argued the cause for customer interve-

nors. With him on the brief were Robert C. McDiarmid,

Lisa G. Dowden, Peter J. Hopkins, Glen L. Ortman, Michael

N. McCarty, Wallace L. Duncan, James D. Pembroke, Rich-

mond F. Allan and Michael Postar. Harvey L. Reiter

entered an appearance.

Robert S. Greenspan and Christine N. Kohl, Attorneys,

U.S. Department of Justice, were on the brief for federal

intervenors.

Before: RANDOLPH and ROGERS, Circuit Judges, and

WILLIAMS, Senior Circuit Judge.

Opinion for the Court filed by Senior Circuit Judge

WILLIAMS.

WILLIAMS, Senior Circuit Judge: Pacific Gas and Electric

Co. disputes the meaning of two agreements between it and

Western Area Power Administration, a federal entity that

operates hydroelectric projects in the West. The agreements

(a contract and an amendment to the contract) provide ‘‘load

shaping’’ for Western, i.e., give it access to PG&E’s non-hydro

power to balance Western’s hydro supplies and enable it to

offer customers firm service; and they give PG&E access to

Western’s excess hydro power at prices lower than PG&E’s

average costs.

Under the agreements, the rate that PG&E charges West-

ern for energy is based on PG&E’s costs for thermal genera-

tion, i.e., producing power from its fossil fuel and nuclear

plants. These costs became less obviously suitable as mark-

ers when California restructured its energy market in 1996.

PG&E then divested itself of most of its generation facilities,

retaining only a single nuclear power plant and a small

number of gas-fired facilities. Although PG&E still produces

three times as much energy as Western requires, its remain-

ing plants are ill-suited to provide load-shaping services for

Western, and it now relies on market purchases (in whole or

3

in part) for the energy it supplies Western. It would like to be

able to charge Western the same price it pays.

The California restructuring also established an ‘‘Indepen-

dent System Operator’’ (‘‘ISO’’), to which PG&E turned over

the operation of its transmission facilities. As a result PG&E

is now billed for several new services. It would like to have

Western cover some of these costs.

Accordingly it filed a new rate schedule with the Federal

Energy Regulatory Commission under § 205 of the Federal

Power Act (‘‘FPA’’), 16 U.S.C. § 824d (2000), changing its

energy rates to reflect the new sources (which are currently

much more expensive) and its transmission rates to reflect

the new ISO costs. FERC accepted the proposal for filing

but suspended the rate increases for five months, as permit-

ted by the statute, and set the matter for an evidentiary

hearing. 95 FERC ¶ 61,273 (2001). As the right of a utility

to effect rate changes via § 205 may be overridden by a

contract between the parties, see Federal Power Commission

v. Sierra Pacific Power Co., 350 U.S. 348, 353 (1956); United

Gas Pipe Line Co. v. Mobile Gas Service Corp., 350 U.S. 332

(1956), the initial—and fatal—issue was whether the agree-

ments between PG&E and Western barred the filing.

The ALJ ruled in favor of Western, finding such a bar.

She held that the agreements unambiguously precluded

PG&E from using § 205 to change energy rates except in

three specific circumstances, none of which applied. Pacific

Gas & Elec. Co. (‘‘ALJ Opinion’’), 96 FERC ¶ 63,043, at

65,282–91 (2001). As to transmission rates, she found that

PG&E had not complied with the contractual condition prece-

dent of participating in a ‘‘joint review’’ of relevant cost

information with Western. Id. at 65,292–93. FERC affirmed

in a very brief order, 97 FERC ¶ 61,082 (2001), and denied

PG&E’s petition for rehearing, 97 FERC ¶ 61,335 (2001).

As to the energy rates, we affirm. As to the transmission

rates, we remand the case for the Commission to reexamine

the joint review issue, on which the ALJ’s opinion muddled

the governing standard and failed to address seemingly sig-

nificant fact claims.

4

* * *

The controlling agreements are Contract No. 14–06–200–

2948A (the ‘‘Contract’’), executed July 31, 1967, and the

‘‘Energy Account No. 2 and Capacity Account Repurchase

Rate Letter Agreement’’ (the ‘‘Letter Agreement’’), dated

February 7, 1992. Article 32 of the Contract provides for

‘‘joint review’’ of the rates every five years, and, if the review

fails to yield agreement, allows either party to seek FERC

approval for changes. PG&E invoked Article 32 in filing

under § 205 of the FPA for changes to both its energy and

transmission rates. As to energy rates, the issues revolve

entirely around new restrictions that FERC believed were

added by the Letter Agreement; as to transmission rates,

they revolve entirely around Article 32’s joint review process.

In reviewing FERC’s interpretation of contracts we first

determine de novo any unambiguous meaning of the contract;

deference comes into the picture only if we find an ambiguity,

in which case we defer to any reasonable resolution by

FERC. Appalachian Power Co. v. FERC, 101 F.3d 1432,

1435, 1437 (D.C. Cir. 1996); cf. Chevron U.S.A. Inc. v. Natu-

ral Res. Def. Council, 467 U.S. 837, 842–43 (1984). Another

ambiguity-related rule, on which all parties here agree, is that

absent a finding of ambiguity parol evidence is inadmissible

(even to determine ambiguity). See, e.g., Appalachian Power

Co., 101 F.3d at 1435; cf. Appalachian Power Co. v. Fed.

Power Comm’n, 529 F.2d 342, 347–48 (D.C. Cir. 1976).

FERC’s findings of fact are conclusive if supported by sub-

stantial evidence. 16 U.S.C. § 825l(b) (2000).

* * *

Energy rates. The Letter Agreement totally revamped the

way energy rates are calculated under the Contract. Al-

though the Contract’s Article 32 provides for amendment via

§ 205, amendments of the Contract alone would be meaning-

less as to energy rates unless they could also bring about

changes in the Letter Agreement. Thus the key question is

whether the Letter Agreement itself limits PG&E’s authority

5

to use Article 32 to change the Letter Agreement’s energy

rate terms.

The key language is found in two paragraphs of § 33 of the

Letter Agreement:

Except as expressly provided herein, nothing in this

Letter Agreement shall be construed as affecting in any

way PG&E’s right to make unilateral application to the

FERC under Section 205 of the Federal Power Act and

pursuant to the Commission’s Rules and Regulations

promulgated thereunder to make [1] the changes in

rates, terms and conditions as set forth in Section A(10)

of Appendix A, and [2] Paragraph 11 of Appendix C, or

[3] to make changes to the service charges set forth in

Paragraph 19 as provided in Article 32 of [the Contract].

Otherwise, this Letter Agreement shall not be subject to

change pursuant to Section 205 of the Federal Power Act

unless agreed by the Parties.

Except as otherwise provided herein, nothing in this

Letter Agreement shall be construed as affecting in any

way the rights of Western or PG&E under the Federal

Power ActTTTT

Letter Agreement § 33 (emphasis and bracketed enumer-

ation added). We refer to the above as the first and second

paragraphs of § 33, although in fact there is an irrelevant

prior paragraph.

The ALJ found that this language unambiguously limits

PG&E’s right to file under § 205 for changes in the Letter

Agreement’s energy rates, leaving only the three listed in-

stances. PG&E agrees that it authorizes § 205 filings in

these instances, but argues that these § 205 rights are in

addition to rather than instead of the rights granted under

Article 32 of the Contract.

Rather than attempting to prove that its interpretation is

correct, PG&E directs most of its fire to the ALJ’s finding

that the Letter Agreement was unambiguous, a ruling that

barred admission of PG&E’s parol evidence. It first argues

that FERC acknowledged ambiguity by ordering a hearing

6

on the matter. But while a remand for a hearing may often

indicate that a contractual provision is ambiguous, it may

simply mean that it is difficult and complicated—as indeed it

is.

The listing of preserved § 205 rights in the first quoted

sentence of § 33 is clearly directed at preventing an implied

limitation of those rights. But it does not bode well for

PG&E’s other § 205 rights since they are not expressly

preserved and might elsewhere be expressly or impliedly

limited. The next sentence establishes that restriction: ‘‘Oth-

erwise, this Letter Agreement shall not be subject to change

pursuant to Section 205 of the Federal Power Act unless

agreed by the Parties.’’ This says rather clearly that PG&E

can use § 205 to change the Letter Agreement’s energy rate

computation methods only in the three enumerated catego-

ries.

PG&E argues that the clarity of that sentence is under-

mined by the first sentence of the next paragraph: ‘‘Except

as otherwise provided herein, nothing in this Letter Agree-

ment shall be construed as affecting in any way the rights of

Western or PG&E under the Federal Power ActTTTT’’ It

says that these two ‘‘otherwise’’ sentences ‘‘either cancel each

other out—as mirror images of one another—or they are

utterly ambiguous, thereby necessitating the consideration of

parol evidence respecting them.’’ Petitioner’s Opening Brief

at 26–27. PG&E’s argument would be on much stronger

footing if the second ‘‘otherwise’’ sentence lacked the opening

phrase, ‘‘Except as otherwise provided hereinTTTT’’ As it is,

the sentence acknowledges that other provisions in the Letter

Agreement affect the rights of the parties under the Federal

Power Act. That the second ‘‘otherwise’’ sentence begins a

new paragraph further suggests that it leaves in place the

prior paragraph’s explicit restriction of § 205 rights.

The two paragraphs invite a straightforward and internally

harmonious construction giving effect to each part. Cf. Mas-

trobuono v. Shearson Lehman Hutton, Inc., 514 U.S. 52, 63

(1995). The ‘‘otherwise’’ sentence of the first paragraph

explicitly limits all § 205 rights to change the Letter Agree-

7

ment, with three enumerated exceptions; the ‘‘otherwise’’

sentence of the next paragraph assures retention of all FPA

rights but the ones specifically excepted. One of the rights

specifically excepted is the right of PG&E to make a § 205

filing for any kind of change other than the three listed.

There is no need for recourse to PG&E’s idea of mutual

cancellation or ambiguity.

Besides, § 33’s third specific authorization for § 205 fil-

ings—‘‘to make changes to the service charges set forth in

Paragraph 19 as provided in Article 32 of [the Contract]’’—

would be wholly redundant if Article 32 rights were preserved

in their entirety. PG&E responds that this clause is best

interpreted as providing a right to file under § 205 at any

time, i.e., free of Article 32’s provision that it may occur only

once ‘‘every five years.’’ But PG&E is wrong; the clause

states that the changes in question may be made ‘‘as provided

in Article 32,’’ indicating that the process is subject to Article

32’s restrictions. The specific incorporation of one subset of

Article 32 rights demolishes the argument that all Article 32

rights are preserved.

PG&E argues that various other provisions of the Letter

Agreement make that agreement’s effects on Article 32 am-

biguous. It points to the Letter Agreement’s opening sen-

tence, saying, ‘‘This letter agreement TTT is made consistent

with the intent of Article 32 of [the Contract]TTTT’’ PG&E

argues that it would make little sense to say that an agree-

ment is consistent with a clause that it intends to restrict.

But this clause introduces the Letter Agreement, and simply

states the source of authority to make the amendment—

Article 32’s provision that the Contract be ‘‘jointly reviewed,

and adjusted as appropriate.’’ It is not saying that that the

Letter Agreement in no way amends Article 32.

PG&E also points to § 31 of the Letter Agreement: ‘‘Ex-

cept as provided herein, nothing contained in this Letter

Agreement shall modify any provisions of [the Contract]. In

the event of a conflict between this Letter Agreement and

[the Contract], [the Contract] shall govern.’’ PG&E reasons

that these sentences should mean that unless a clause of the

8

Letter Agreement specifically amends the Contract, any con-

flict between the two agreements is resolved in favor of the

Contract. If PG&E means that any amendments of the

Contract must start, ‘‘We amend § x,’’ then PG&E is wrong.

The Letter Agreement created many new terms without

explicitly labeling each one an amendment of the Contract—

much less mentioning the specific provisions amended. If

PG&E means only that in the case of ambiguity regarding

whether the Letter Agreement changes something, the origi-

nal contract governs—a more appropriate interpretation of

the language—its argument takes it nowhere. Here, it is

clear that the Letter Agreement amended terms of the

original contract, though without introducing each change

with a drum roll.

To support its arguments that the text of the Letter

Agreement is ambiguous, PG&E argues that it would make

no sense for it to give up its Article 32 rights in exchange for

a mere fine-tuning of the energy price computation. And it

says that under FERC’s view it gives up its rights to seek

energy rate changes through FERC without Western giving

up its parallel Article 32 rights. The one-sidedness occurs

because Western is not a public utility within the meaning of

the FPA; as such it never had any § 205 rights to give up.

See ALJ Opinion, 96 FERC at 65,284. Thus the parties seem

to agree that any non-agreed change to energy rates could

come only through an exercise by FERC of its power under

§ 206, 16 U.S.C. § 824e; but they appear to disagree as to

which of such changes must satisfy the Sierra-Mobile doc-

trine’s very demanding ‘‘public interest’’ standard. See, e.g.,

Texaco Inc. v. FERC, 148 F.3d 1091, 1095 (D.C. Cir. 1998).

PG&E thinks that FERC will likely require it to meet the

public interest standard while allowing Western to secure

changes under a more lenient one. FERC did not address

these interesting collateral issues, and we need not.

Whatever the parties’ residual rights to seek changes

through § 206, PG&E has by no means shown that the

natural construction of the Letter Agreement is so lopsided

as to be implausible. The Letter Agreement greatly simpli-

fied the previous system for determining rates. PG&E did

9

reserve the right to make § 205 filings in three specific areas,

which may then have been seen as critical. Additionally,

Western limited its right to request a hearing in certain

circumstances. See Letter Agreement § 33. In short, the

Letter Agreement is not so obviously unbalanced as to make

us question its otherwise plain meaning.

As the parties have agreed that parol evidence is not to be

admitted if the contract is unambiguous, there is no need for

us, and was no need for the ALJ, to review the parol evidence

tendered by PG&E. We note for the record that the evi-

dence offered seems astonishingly weak: primarily the nego-

tiators’ failure to recall any determination to cut down

PG&E’s Article 32 filing rights.

PG&E has a back-up argument. It claims that even if it

can’t file energy rate changes under Article 32 of the Con-

tract, it should still be able to do so under the first of the

Letter Agreement’s three specific exceptions. This provision

gives PG&E the right to make unilateral application to

FERC ‘‘under Section 205 of the Federal Power Act and

pursuant to the Commission’s Rules and Regulations promul-

gated thereunder to make the changes in rates, terms and

conditions as set forth in Section A(10) of Appendix ATTTT’’

Section A(10) of Appendix A in turn states that ‘‘[i]n the event

TTT any legislative body or governmental agency takes any

action that necessitates or results in changes to this Appendix

A, the Parties agree to negotiate in good faith and implement

changes to this Appendix A to provide concurrent and consis-

tent modifications, as necessary.’’ The provision then says

that if the parties cannot agree on changes, they may make

appropriate filings with FERC. The Commission put aside

the question of whether the requisite governmental action

was shown, 97 FERC at 61,397 n.4, but agreed with the

ALJ’s finding that PG&E’s proposed changes could not quali-

fy as ‘‘changes to this Appendix A.’’

Appendix A addresses various issues in calculating the

costs at PG&E’s thermal plants. It does so within the

framework of the Letter Agreement, which in § 2(b) declares

that its purpose is to establish ‘‘methodology, data sources

10

and procedures for the calculation of PG&E’s Average Annual

Thermal Capacity and Energy Production Costs.’’ PG&E

argues that its filing represents a ‘‘change to this Appendix

A,’’ as it replaces rates based on PG&E’s thermal plant costs

with rates based on its purchases in the open market.

We think that, at a minimum, language allowing changes

‘‘to this Appendix A’’ cannot cover changes substantially

affecting terms outside Appendix A. See ALJ Opinion, 96

FERC at 65,288. PG&E’s filing would do so. It would moot

the entire Letter Agreement. Because of its complete substi-

tution for Appendix A and the rest of the Letter Agreement,

it would essentially ‘‘abolish and replace’’ the Letter Agree-

ment, as the ALJ found. ALJ Opinion, 96 FERC at 65,289.

And an example of this can be found in its de facto elimina-

tion of Appendix C, governing calculation of costs at PG&E’s

Diablo Canyon plant. Even PG&E concedes the point, ac-

knowledging that its filing ‘‘proposed to delete Appendix C,’’

Petitioner’s Reply Brief at 20.1

If proposals so remote from Appendix A are ‘‘changes to

this Appendix A,’’ then it appears that any proposed change

would qualify (so long as it met the governmental action

requirement posed by the section), no matter how radically it

affected the rest of the Letter Agreement and the Contract.

Whatever the exact contours of what might be a change ‘‘to’’

Appendix A, PG&E’s filing cannot qualify.

Transmission rates. Under the California restructuring

and PG&E’s ceding control of its transmission facilities to the

ISO, PG&E is billed additional costs for services related to

maintaining grid reliability. PG&E now wishes to charge

Western for the portion of these charges relating to its

energy sales to Western.

FERC and the ALJ posed a single obstacle to PG&E’s

§ 205 filing new transmission rates—their conclusion that

1 Although § 33 of the Letter Agreement preserves a very

limited right to amend Appendix C, see § C(11), PG&E has never

pretended that it encompasses the changes that PG&E has pro-

posed.

11

PG&E had not met the ‘‘joint review’’ requirement of Article

32 of the Contract:

Rates and charges TTT shall TTT together with service

charges, be jointly reviewed, and adjusted as appropriate

TTT every five yearsTTTT Such review shall take into

account substantial savings accruing to either party and

applicable costs of construction and production, including

changes therein and appropriate service charges, during

the preceding five years. If the parties are unable to

agree on a change of any rate or charge, the matter shall

be submitted to the Federal Power Commission [prede-

cessor of FERC] for final decision.

(Emphasis added.) PG&E argues that joint review is not a

condition precedent for a § 205 filing, and that in any event it

adequately engaged in joint review with Western. We reject

PG&E’s first argument but vacate and remand the case for

further consideration of the second.

Claiming that joint review is not a condition precedent,

PG&E asserts that such conditions are disfavored in contract

interpretation, see, e.g., Samuel Williston, A TREATISE ON THE

LAW OF CONTRACTS § 38.13 (4th ed. 2000), and notes that there

is no conditional word, such as ‘‘if,’’ preceding the statement

of the joint review covenant. But there is a word of condition

that is relevant. The latter part of the provision states that

‘‘[i]f the parties are unable to agree,’’ the matter shall be

submitted to FERC. This explicitly conditions each party’s

right to bring a matter to FERC on the two sides having

proven unable to agree. It plainly anticipates that the parties

will have engaged in joint review and come to a standstill

before one of them can petition FERC for review. The

provision’s detail on the nature of the joint review suggests

an intent that the provision be effectively enforced, and

PG&E’s proposed alternative method of enforcement, discov-

ery, seems less effective and likely duplicative of the parties’

pre-existing rights in a § 205 hearing. See 18 C.F.R.

§§ 385.401–02, 385.501 (2002). We agree with the ALJ that

the language imposes a condition precedent.

12

Whether PG&E met its joint review obligations depends on

two points—the standard of compliance, and PG&E’s actual

behavior. In finding PG&E in default, the ALJ rejected any

notion of substantial compliance. ALJ Opinion, 96 FERC at

65,293. It quoted another ALJ opinion stating:

[T]he Mobile-Sierra doctrine does not have a ‘‘substan-

tiality’’ test: the terms of the contract either permit the

rate increase or do not permit the rate increase.

Id. (quoting Pacific Gas & Elec. Co., 95 FERC ¶ 63,022 at

65,211 (2001)).

This idea seems to lack sense—which may explain why

FERC offered no defense either in its brief or in oral

argument. It is presumably true that any behavior subject to

a condition precedent is, in the end, either barred or not

barred. But that truism offers no reason why an utterly

trivial default should be fatal; and in fact it normally is not.

See, e.g., Employers Ins. of Wausau v. Browner, 52 F.3d 656,

664 (7th Cir. 1995); Williston, A TREATISE ON THE LAW OF

CONTRACTS § 44.52.

The case for a substantial compliance standard seems

compelling here. Joint review is difficult to define and hard

to measure. Unless there is some leeway, a minor defect in

compliance could trigger wholly disproportionate conse-

quences with little warning, perhaps engendering wasteful

overcompliance efforts. And the party resisting any change

would have an incentive to raise loads of minor requests in

the hope of bringing about a single instance of imperfect

compliance. So substantial compliance is enough, and the

ALJ’s insistence on more was not a reasonable interpretation

of the contract.

The evidence of PG&E’s failure to comply is hardly over-

whelming. FERC focuses on its failure to provide Western

the necessary data and to adequately discuss and review that

data with Western. Article 32 states that review should take

into account ‘‘substantial savings accruing to either party and

applicable costs of construction and production, including

changes therein and appropriate service charges, during the

13

preceding five years.’’ All parties agree that this provision at

least means that each party must have access to the preced-

ing five years of data in the specified categories. Since the

data at issue were in PG&E’s possession, the question is

whether PG&E adequately made it available to Western.

PG&E argues that Western has access to the relevant data

for the preceding five years (1996 to 2001) since it was an

intervenor in five different rate cases in which PG&E had to

submit this information. See 93 FERC ¶ 61,207 (2000); 89

FERC ¶ 61,081 (1999); 87 FERC ¶ 61,218 (1999); 83 FERC

¶ 61,212 (1998); 81 FERC ¶ 61,323 (1997). Western (an

intervenor in this case) argues that ‘‘telling Western where to

find the information scarcely amounts to the joint review by

both parties mandated by Article 32,’’ Brief for Federal

Intervenors at 35–36, while PG&E says that Article 32 does

‘‘not require [it] to act like Kinko’s, making copies of the same

documents over and over for Western,’’ PG&E’s Reply Brief

at 22. We agree with PG&E. If Western had reasonably

convenient access to all of the relevant information (and

Western asserts no inconvenience), then PG&E has per-

formed its duty of disclosure.

The briefs and the ALJ’s opinion leave us unclear as to

whether Western is claiming that these five rate cases did not

contain all of the information required for joint review under

Article 32. If that information was complete, then the ALJ’s

discussion about PG&E’s limited deliveries of data is immate-

rial. See ALJ Opinion, 96 FERC at 65,292–93. If lack of

information is to be one of the grounds for PG&E’s failure to

meet the joint review requirement, FERC must make clear

what information has not been made available. It has not

done so.

The ALJ’s opinion is suffused with observations that the

parties have not reviewed and discussed various points. See,

e.g., id. at 65,293. We agree with PG&E that joint review

does not require PG&E to sit down and look over Western’s

shoulder as it considers the information. It also does not

mean that every single point needs to be discussed. Rather,

the information should be made available to Western, giving

14

Western a chance to ask questions and raise concerns, to

which, obviously, PG&E must respond clearly, forthrightly

and completely. If Western expresses a reasonable desire to

meet and discuss open questions, then joint review requires

cooperation from PG&E. But issues need not be discussed

unless a party sees a need.

PG&E apparently met with Western 21 times prior to its

§ 205 filing; but the bulk of these meetings, and indeed of

Western’s complaints to the ALJ about PG&E’s defective

joint review, appear to have concerned energy rather than

transmission rates. See, e.g., August 8, 2001 Affidavit of

Bryan W. Griess. During at least one of these meetings,

PG&E discussed transmission rates and how they were de-

rived from PG&E’s costs. At this same meeting, PG&E told

Western where to find the information on transmission rates,

and its agent said that Western appeared satisfied with the

response. See ALJ Opinion, 96 FERC at 65,292. But the

satisfaction was not total. Western points to an e-mail ex-

change on January 4–5, 2001, in which Western’s representa-

tive asked to meet with one from PG&E to discuss cost of

service data. PG&E rebuffed the request, suggesting instead

that they meet after the filing (presumably the § 205 filing),

but also inviting Western to propose any items it wished for a

technical conference scheduled for a few days later.

This e-mail refusal is clearly relevant to a conclusion that

PG&E failed to substantially comply with the joint review

requirement. But it is unclear whether the ALJ would have

made the same decision relying on it alone—and it appears to

be alone (barring a showing of inadequacies in the informa-

tion made available to Western).

Accordingly we vacate the portion of the order concerning

whether PG&E met the joint review requirement and remand

the case for FERC’s further consideration. Otherwise, we

affirm.

So ordered.

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