Union Carbide Corp. v. Public Service Commission

This case presents two questions. First, did the Public Service Commission exceed its statutory authority in ordering Consumers Power Company to cease noneconomic operation of its Karri oil-fired generating plants and to limit acceptance of oil deliveries under its contract with Union Carbide? Second, did the commission’s order impair the contractual obligation of Union Carbide to provide oil to Consumers Power?

We hold that, in this case, the commission exceeded its statutory authority by ordering Consumers Power to stop operating its Karn units out of economic order and to limit its…