The Missouri loophole is positioned to spread like a virus to other states.

The issue is about interstate transmission lines. It is positioned as a battle between state and federal regulators. The utility believes interstate commerce is in the domain of the Federal Energy Regulatory Commission (FERC). The state believes it is in the domain of the state's Public Service Commission (PSC). Kansas City Power & Light now seeks clarification from the Supreme Court of the United States.

According to the St. Louis Post Dispatch, "The case is also considered an important test of federal authority over energy policy. It hinges in part on the doctrine that interstate transmission rates approved by a federal agency are considered just and reasonable, the Star reported. Another issue is the U.S. Constitution's supremacy clause, which allows the federal government to trump state authority."

I thought this was a settled matter. Apparently, [many] others disagree.

If this matter goes forward, a SCOTUS decision would impact Entergy (ETR) and ITC Holdings (ITC). It would also impact American Electric Power (AEP), FirstEnergy (FE) and any other company owning t-line assets.

I believe this issue could creep into natural gas.

For more, see the newspaper's article here.


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