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Expert Analysis

'Just And Reasonable': Wholesale Energy Contracts

Law360, New York (September 29, 2008, 12:00 AM EDT) -- In a decision arising out of the 2000-2001 Western energy crisis, the Supreme Court of the United States has ruled that where the rates included in a wholesale power sale agreement were freely negotiated between the buyer and the seller, the Federal Energy Regulatory Commission (FERC) is required to presume that the rate meets the "just and reasonable" standard under the Federal Power Act. Morgan Stanley Capital Group Inc. v. Public Utility District No. 1 of Snohomish County, 554 U.S. ___ (2008)(June 26, 2008)....

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