Following through on previous threats of legal action, PPL Montana yesterday asked a federal court to declare efforts by the Montana Public Service Commission (PSC) to regulate sales from the company’s power plants as being unconstitutional.

PPL Corp. in late June openly questioned the PSC’s authority over the company’s power plants in the state, and said it wouldn’t rule out the possibility of taking legal action in response to a recent PSC order. PPL said that although the order in question was directed at Montana Power, the PSC nonetheless was attempting to use the decision as a vehicle in which to assert its regulatory authority over PPL Montana’s power plants (see Daily GPI, June 27).

PPL Montana yesterday made good on its threat of legal action by filing a complaint with the U.S. District Court in Helena, MT, that asks the court to declare the PSC action “preempted, unconstitutional and void.” The complaint also asks the court to issue an order enjoining the PSC from seeking to exercise any authority, control or regulation of wholesale sales from PPL Montana’s generating assets.

Grey said that the Federal Power Act preempts states from exercising regulatory authority over sale of electricity in wholesale markets. In addition, the Federal Energy Regulatory Commission has granted PPL Montana special status to sell solely in the wholesale market. Grey also pointed out that, in an action taken in May 1999, the PSC approved federal control over PPL Montana’s plants as in the public interest. “The commission’s recent action inexplicably tries to overturn that previous judgment,” said Grey.

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