Facts

The Bonneville Power Administration and Western Area Power Administration participated in the California Power Exchange and California Independent System Corporation. The Federal Energy Regulatory Commission (FERC) regulated electric energy markets. FERC put the sellers on notice that if they investigated and found that any prices charged were unjust and unreasonable, the sellers would be liable to give refunds. The FERC eventually found prices to be unfair and reset them.

The State of California later brought suit against the federal government, seeking a determination of whether it was contractually bound to retain the just and reasonable prices set by the FERC. They also sought refunds of the any prices charged that exceeded the mitigated prices.

PLAINTIFF'S CONTENTIONS:
Plaintiffs moved for declaratory judgment, arguing that the Bonneville Power Administration and Western Area Power Administration had breached their contractual obligations by not providing refunds for overcharges.

DEFENDANT'S CONTENTIONS:
Defendants argued that plaintiffs' claims were precluded and moot, based on a prior decision in City of Redding v. FERC, 693 F.3d 828 (9th Cir. Aug. 27, 2012).

Result

The court granted plaintiffs' request for declaratory judgment.