Morgan Stanley Capital Group Inc. v. Public Utility District No. 1 of Snohomish County

Summary

The Court affirmed the Ninth Circuit’s judgment and remanded for further proceedings, holding that the Mobile‑Sierra presumption applies to wholesale‑electricity contracts regardless of whether FERC initially reviewed the rate without the presumption and that the same “serious harm to the public interest” standard governs both purchaser and seller challenges. The opinion also directs the Commission to clarify its analysis of excess‑burden calculations and the impact of unlawful market manipulation. Justice Stevens dissented, arguing the presumption is unwarranted, and Justice Ginsburg concurred in part, urging denial of certiorari pending further record.