Opinion ID: 528399
Heading Depth: 2
Heading Rank: 3

Heading: The Billing Dispute and FERC Proceedings

Text: 17 On August 22, 1985, the Commission sent Seattle a bill requesting payment of $979,633 in additional charges assessed for its use of federal land from 1977 through 1983. In a letter dated October 2, 1985, FERC asserted that its grossly low earlier assessments were not intended as final determinations of section 10(e) reasonable annual charges for the years 1977 through 1983 and that the revised charges had been computed according to Order No. 560's fluctuating interest rate methodology. On October 8, the City petitioned for a declaratory order that these retroactive increases violated article 24 of the Project 553 license, which specified the dollar amounts of the annual charges owed by Seattle. 18 On August 3, 1987, the Commission denied the petition and ruled that Seattle must pay annual charges as adjusted by FERC pursuant to FPA section 10(e) and regulations promulgated thereunder. City of Seattle, 40 F.E.R.C. p 61,135. The Commission reasoned that, by accepting the 1943 amendments to its license, Seattle had agreed to become subject to all the Act's provisions and related rules and regulations. Id. at 61,394. On July 29, 1988, FERC denied the City's petition for rehearing. 44 F.E.R.C. p 61,168. Seattle has appealed.