California Public Utilities Commission v. Federal Energy Regulatory Commission

OPINION

THOMAS, Chief Circuit Judge:

In this petition for review, we consider whether the Federal Energy Regulatory Commission (“FERC” or “Commission”) arbitrarily and capriciously determined that Pacific Gas & Electric Company (“PG&E”) was eligible for an incentive adder for remaining a-member of the . California Independent System Operator Corporation (“Cal-ISO”) when state ■ law prevented PG&E’s departure without authorization. We conclude that it did, and we grant the petition.

I

Section 201 of the Federal Power Act (“FPA”) gives FERC jurisdiction over the rates, terms, and conditions of…