Court Upholds PSC Ruling

The Arkansas Court of Appeals on Dec. 5 affirmed the state Public Service Commission’s decision to dismiss a case brought against Arkansas Western Gas by two rate payers, Robert Brandon and Carl Brooks.

Represented by Fayetteville lawyer Dale Evans, Brandon and Brooks sought back pay for years of excessive natural gas payments made by 87,000 AWG rate payers. According to the original docket, the case requested repayment totaling at least one of the following three options: $14 million per year since 1978, $210 million, or the amount by which the rates exceeded reasonable charges.

Evans told the Northwest Arkansas Business Journal that his clients will file for reconsideration with the Court of Appeals and for review with the Arkansas Supreme Court.

“This is one that I think is novel enough — and it makes a first impression — that it could get reviewed [by the state supreme court],” Evans said.

Southwestern Energy Corp. owns AWG. Greg Kerley, Southwestern Energy’s chief financial officer, said the company’s administrators “expected and hoped for [the affirmation].”

Kerley said he didn’t expect Brandon and Brooks to appeal the case again.

Originally filed in December 1993, the case developed on the heels of an agreement made between the state attorney general’s office, the PSC and AWG. The gas company had failed to buy and furnish gas “from the lowest or most advantageous market,” which is a PSC regulation for all gas companies. Although AWG agreed to stop the practice, the settlement offered no refunds for customers who overpaid.

Brooks and Brandon’s case has been dismissed by the PSC twice. After the first dismissal, the case won an appeal for rehearing from the Court of Appeals.

Judge Andree Layton Roaf wrote the affirming opinion that upheld the PSC’s decision to again dismiss the rate payers’ case.