ILNews

COA rules on public utility issues

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Court of Appeals affirmed in part and reversed in part the decision by the Indiana Utility Regulatory Commission finding United States Steel Corp. acted as a public utility when it delivered electricity and natural gas to another steel producer in northwestern Indiana.

U.S. Steel and ArcelorMittal had an arrangement in which U.S. Steel would provide the electricity and natural gas to the Plate Mill located within the steel-making operation of U.S. Steel. The two companies swapped facilities within their respective industrial complexes, so ArcelorMittal began operating this mill. Electricity would originally come from Northern Indiana Public Service Company; U.S. Steel arranged with NIPSCO to transport natural gas from other producers to the mill, which was paid for by ArcelorMittal.

The steel producers filed an informal complaint, and later a formal complaint, with the IURC Consumer Affairs Division, seeking a determination that their actions didn’t violate any tariff, contract, or other utility law. NIPSCO filed a formal complaint that U.S. Steel had violated Indiana law and NIPSCO’s tariffs by selling electricity and gas service.

A final order of the IURC determined that U.S. Steel’s provision of electricity and transportation of natural gas to ArcelorMittal made U.S. Steel a public utility as defined by statute. Both U.S. Steel and ArcelorMittal, as well as NIPSCO, appealed the order.

In United States Steel Corp., et al. v. Northern Indiana Public Service Co., No. 93A02-1006-EX-632, the appellate court determined the regulatory commission erred in determining that U.S. Steel’s delivery of electricity to ArcelorMittal made it a public utility under Indiana Code 8-1-2-1(a). The delivery of electricity for use at the mill did not amount to service directly or indirectly to the public. U.S. Steel provided electricity to only one customer located within its industrial complex pursuant to a special agreement, wrote Judge Paul Mathias. The commission also erred in concluding U.S. Steel had violated Indiana’s Service Area Assignments Act by selling electricity to ArcelorMittal within NIPSCO’s exclusive electric service area because U.S. Steel isn’t a public utility so it is not an electricity supplier.

The judges affirmed the commission on the issue of whether U.S. Steel acted as a public utility regarding the delivery of natural gas to ArcelorMittal at the mill. U.S. Steels activities fell under subsection 2 of I.C. 8-1-2-87.5(b), which says that anyone “engaged in the transportation of gas solely within this state on behalf of any end use consumer or consumers” is a public utility. As such, U.S. Steel’s resale of natural gas purchased from NIPSCO to ArcelorMittal violated NIPSCO’s tariff ban on resale.

The appellate court also affirmed the dismissal of the steel producers’ complaint against NIPSCO and held that the regulatory commission wasn’t required to address NIPSCO’s additional claims, which it chose not to do. They remanded for the commission to vacate the portions of its order regarding U.S. Steel being a public utility in the distribution of electricity.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
2015 Distinguished Barrister &
Up and Coming Lawyer Reception

Tuesday, May 5, 2015 • 4:30 - 7:00 pm
Learn More


ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Too many attorneys take their position as a license to intimidate and threaten non attorneys in person and by mail. Did find it ironic that a reader moved to comment twice on this article could not complete a paragraph without resorting to insulting name calling (rethuglican) as a substitute for reasoned discussion. Some people will never get the point this action should have made.

  2. People have heard of Magna Carta, and not the Provisions of Oxford & Westminster. Not that anybody really cares. Today, it might be considered ethnic or racial bias to talk about the "Anglo Saxon common law." I don't even see the word English in the blurb above. Anyhow speaking of Edward I-- he was famously intolerant of diversity himself viz the Edict of Expulsion 1290. So all he did too like making parliament a permanent institution-- that all must be discredited. 100 years from now such commemorations will be in the dustbin of history.

  3. Oops, I meant discipline, not disciple. Interesting that those words share such a close relationship. We attorneys are to be disciples of the law, being disciplined to serve the law and its source, the constitutions. Do that, and the goals of Magna Carta are advanced. Do that not and Magna Carta is usurped. Do that not and you should be disciplined. Do that and you should be counted a good disciple. My experiences, once again, do not reveal a process that is adhering to the due process ideals of Magna Carta. Just the opposite, in fact. Braveheart's dying rebel (for a great cause) yell comes to mind.

  4. It is not a sign of the times that many Ind licensed attorneys (I am not) would fear writing what I wrote below, even if they had experiences to back it up. Let's take a minute to thank God for the brave Baron's who risked death by torture to tell the government that it was in the wrong. Today is a career ruination that whistleblowers risk. That is often brought on by denial of licenses or disciple for those who dare speak truth to power. Magna Carta says truth rules power, power too often claims that truth matters not, only Power. Fight such power for the good of our constitutional republics. If we lose them we have only bureaucratic tyranny to pass onto our children. Government attorneys, of all lawyers, should best realize this and work to see our patrimony preserved. I am now a government attorney (once again) in Kansas, and respecting the rule of law is my passion, first and foremost.

  5. I have dealt with more than a few I-465 moat-protected government attorneys and even judges who just cannot seem to wrap their heads around the core of this 800 year old document. I guess monarchial privileges and powers corrupt still ..... from an academic website on this fantastic "treaty" between the King and the people ... "Enduring Principles of Liberty Magna Carta was written by a group of 13th-century barons to protect their rights and property against a tyrannical king. There are two principles expressed in Magna Carta that resonate to this day: "No freeman shall be taken, imprisoned, disseised, outlawed, banished, or in any way destroyed, nor will We proceed against or prosecute him, except by the lawful judgment of his peers or by the law of the land." "To no one will We sell, to no one will We deny or delay, right or justice." Inspiration for Americans During the American Revolution, Magna Carta served to inspire and justify action in liberty’s defense. The colonists believed they were entitled to the same rights as Englishmen, rights guaranteed in Magna Carta. They embedded those rights into the laws of their states and later into the Constitution and Bill of Rights. The Fifth Amendment to the Constitution ("no person shall . . . be deprived of life, liberty, or property, without due process of law.") is a direct descendent of Magna Carta's guarantee of proceedings according to the "law of the land." http://www.archives.gov/exhibits/featured_documents/magna_carta/

ADVERTISEMENT