# Amicus Curiae Brief — Connecticut v. New Hampshire

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URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385013_0328%3A14

## Record

- **Collection:** Supreme Court brief
- **Document type:** Amicus Curiae Brief
- **Published:** January 1, 1992
- **Citation:** 502 U.S. 1069

## Text

SUPREME COURT OF THE UNITED STATES

NO. 119, ORIGINAL

STATE OF CONNECTICUT,
COMMONWEALTH OF MASSACHUSETTS,
STATE OF RHODE ISLAND AND
PROVIDENCE PLANTATIONS,
Plaintiffs,

Vv.

STATE OF NEW HAMPSHIRE,

Defendant.

MOTION OF THE MASSACHUSETTS
MUNICIPAL WHOLESALE ELECTRIC
COMPANY FOR LEAVE TO PARTICIPATE

AS AN AMICUS CURIAE IN THE
PRESENT ACTION.

Nicholas J. Scobbo, Jr.
Mitchell J. Sikora, Jr.
FERRITER, SCOBBO, SIKORA,
CARUSO & RODOPHELE,P.C.
One Beacon Street

Boston, MA 02108

Tel: 617-589-0700

Fax: 617-589-0701

MOTION.

_ The Massachusetts Municipal Wholesale Electric Company

("MMWEC") respectfully moves that the court grant it leave to

participate as an amicus curiae in the present action.

+

GROUNDS .

Guided by the criteria of Supreme Court Rule 37 controlling

participation by an appellate amicus curiae, MMWEC reports as

follows.

l. (a) MMWEC is a statutorily created corporation comprised
of 29 Massachusetts municipal electric departments and intended by
the Massachusetts Legislature to acquire and to sell to its
constituent members and other utilities electrical power at
economical rates. To that end, the Legislature has authorized and
enabled MMWEC to purchase electrical power and generating capacity
in greater volumes and at lower costs than would be available to
individual municipal electric departments; and to sell those
amounts of “public power" to its members and to other utility

purchasers at savings resulting from the scale of its activities.

(b) In legal character, MMWEC comprises a political

subdivision of the Commonwealth created by Massachusetts Statutes

1975, Chapter 775, §§1-25, codified as Massachusetts General Laws
Chapter 164, Appendix §§1-1 through 1-25 (hereinafter M.G.L. c.
164, App. §__). That enabling legislation provides that MMWEC’s
authority be "deemed and held to be in the performance of an
essential public function." M.G.L. c. 164, §1-2. As "a public
instrumentality," MMWEC is empowered to “acquire, construct,
operate or otherwise participate in electric power facilities to
meet the power requirements of its members." M.G.L. c. 164, §l-
5(p); MMWEC may contract with non-member utility companies located

inside or outside of Massachusetts. M.G.L. c. 164, App. §1-5(m).

(c) Because MMWEC has no stockholders, no retained
earnings, and no independent source of funds, it borrows money in
order to finance its acquisition or construction of electric
facilities. When members and/or other contracting utilities
express sufficient interest in a particular electric power source
or facility, MMWEC creates a planning, acquisition, and financing
vehicle knowns as a "project." To finance a project, MMWEC
borrows needed funds through long-term revenue bonds or other
forms of indebtedness M.G.L. c. 164, App. §1-9. It may issue such
long-term bonds only if the Massachusetts Department of Public
Utilities ("DPU"), after an adjudicatory hearing, determines such
an issuance to be “reasonably necessary for the proposed purpose"
and only upon such terms and conditions as the DPU may impose.

M.G.L. c. 164, App. §1-17.

(d) As a result of initial DPU authorization of fi-
nancing in 1976, 1977, 1980, and 1981, and contractual
arrangements undertaken during the period of 1976 - 1982, MMWEC
has purchased and presently maintains ownership of 11.59%
(133,324 KW) of the capacity and output of the Seabrook Station.
Under various power sales agreements, it sells that output to 28

Massachusetts participants, and one Rhode Island participant.

2. (a) As a joint owner of the Seabrook Station, MMWEC to
date has made payments of the New Hampshire Nuclear Station Prop-

erty Tax as follows:

Date Amount
September 13, 1991 $ 649,230.40
December 15, 1991 649,230.40
April 10, 1992 649,230.40

Total $1,947,691.20

(b) MMWEC does not engage in any business activity in
New Hampshire within the meaning of that state’s Business Profits
Tax. Consequently it has not, and does not, pay any amounts under
the statute. It has not, and does not, qualify for any credit or

set-off under that tax.

(c) As mandated by its enabling legislation, M.G.L. c.
164, App. §1-6(b), (c), and by its power sales agreements, MMWEC
has transmitted the Nuclear Station Property Tax onward to its
project participants, which bill the tax expense to their

customers (retail level consumers of business and residential

character), in the following manner. Since November, 1991, MMWEC
has billed the tax inerement monthly, under an annual budget as a.
level amount to each power sales agreement project participant
contracting with MMWEC for the output of Seabrook Station
capacity. The charges from MMWEC to its project participants are
not subject to any rate regulation. M.G.L. c. 164, §1-10(b). The
Massachusetts participants recognize the billings as a purchase
power expense so as to be able to recover the expense from their
customers. Those recoveries create revenues for repayment to

MMWEC.

3. Presently MMWEC is participating in the preparation of
the case before the Special Master as a source of information and
evidence accrued from its role as a substantial joint owner of the

Seabrook Station (Complaint, paragraph 7).

4. Its interests align generally with those of the Common-
wealth of Massachusetts, but contain several independent and

distinctive features.

(a) Its transmission of the New Hampshire tax burden
directly to its municipal light department members, other
contracting municipal light departments, and consumers, burdens
those entities with whom it is in a relationship of ongoing
business privity practicably closer and more immediate than those
entities’ parens patriae relationship with the Commonwealth.

Individually, those entities lack the resources to challenge the

New Hampshire tax burden in these proceedings. MMWEC is able to
participate, and is situated and motivated to protect the
interests of those municipal light departments and those consumers
to whom it reluctantly transmits the cost of the tax. In
traditional terms it would have direct standing to assert the
injury of the tax to itself and to its members, NAACP v. Button,
371 U.S. 415, 428 (1963); and jus tertiji standing to assert the
interests of its absent contracting purchasers and consumers. See
generally Griswold v. Connecticut, 381 U.S. 479, 481 (1965);
Barrows v. Jackson, 346 U.S. 249, 255-258 (1953); Pierce v.
Society of Sisters, 268 U.S. 510, 535 (1925); R.A. Sedler,

: ij to 2 = titut LJ Tertii in the s : ct,
71 YALE L.J. 599, 652-656 (1962); and NOTE, Standing to Assert
Constitutional Jus Tertii, 88 HARV. L. REV. 423, 431-436 (1974).

(b) While the parens patriae standing of the Common-
wealth appears to rest on firm grounds, Wyoming v. Oklahoma, 60
USLW 4119, 4123-4124 (1992), and Maryland v. Louisiana, 451 U.S.
725, 735-739 (1981), three dissenting Justices in the Wyoming case
expressed the view that a state, claiming parens patriae standing
in behalf of injured resident clients at the hands of absent third
parties, must eliminate alternate or “variable” causes of the
clients’ injury so as to demonstrate that their harm flows
reasonably directly or "“traceab{ly)" from the challenged conduct
of the defendant state. 60 USLW at 4127 (dissenting Opinion of

Justice Scalia, joined by the Chief Justice and Justice Thomas).

(i) As an indicated “third party” in the causal
chain of injury reaching the ultimate, but absent, ratepayer-
taxpayer, MMWEC wishes to furnish information, evidence, and

argument upon the course and effects of the tax.

(ii) In the same role, MMWEC wishes to corroborate
the parens patriae standing of the Commonwealth against any doubts

generated by the cited Wyoming dissenters’ analysis.

5. MMWEC’s participation will be efficient and unobtrusive.
It has monitored all papers and proceedings to date and reflected
carefully upon its proposed participation. It is familiar with
the status and agenda of the case. It will conform its involve-

ment to the existing plans of the Special Master.

CERTIFICATE OF SERVICE
CONCLUSION.
I, Mitchell J. Sikora, Jr., an attorney for the proposed
Therefore the Massachusetts Mutual Wholesale Electric Company amicus curiae Massachusetts Municipal Wholesale Electric Company,
requests the allowance of its Motion to Participate as an Amicus ‘ hereby certify that I have today undertaken service of that
Curiae. | client’s Motion for Leave to Participate as Amicus Curiae by means
of hand delivery or first class mailing of copies of the same to
all counsel of record and to the clerk for Special Master Vincent
Respectfully submitted, L. McKusick.

Wied rier J: Scolbe A (as)

Lai esl L Abie A: tom ft At ff
Nicholas J. Séobbo, Jr. 7 Li esp lO A cd perm | a.

Mitchell J. Sikora, Jr. Mitchell J‘ Sikora, Jr.
FERRITER, SCOBBO, SIKORA,
CARUSO & RODOPHELE, P.C. Dated: June 12, 1992.

One Beacon Street
Boston, MA 02108
(617) 589-0700

Dated: June 10, 1992.

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385013_0328%3A14. Public record. Not legal advice.
