City of Sidney v. Municipal Energy Agency of Nebraska

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The Supreme Court reversed the decision of the arbitration board ruling that the monthly transmission rate the City of Sidney’s whole-sale energy provider, Municipal Energy Agency of Nebraska (MEAN), charged Sidney was excessive, unfair, and unreasonable, holding that MEAN was permitted to charge Sidney the increased transmission rate. The board determined that MEAN breached the parties’ Service Schedule M (SSM) supplemental agreement by changing the transmission path for the electric power and energy it provided to Sidney and by charging the city for the increased transmission rates. The Supreme Court disagreed, holding (1) the increased monthly transmission rate charges were required for continued performance of the SSM after the parties learned they had insufficient contractual rights to complete the transmission path to Sidney, and therefore, the charges were not incurred arbitrarily; and (2) MEAN substantially complied with the SSM in transmitting energy to Sidney, and MEAN was permitted to charge the city the increased transmission rate under the SSM. View "City of Sidney v. Municipal Energy Agency of Nebraska" on Justia Law