Opinion ID: 184737
Heading Depth: 2
Heading Rank: 1

Heading: standard of review

Text: 14 We review FERC orders under the Administrative Procedure Act's (APA) arbitrary and capricious standard. See Union Pac. Fuels, Inc. v. FERC, 129 F.3d 157, 161 (D.C.Cir.1997); 5 U.S.C. § 706(2)(A) (1994). Because  '[i]ssues of rate design are fairly technical and, insofar as they are not technical, involve policy judgments that lie at the core of the regulatory mission,' our review of whether a particular rate design is 'just and reasonable' is highly deferential. Northern States, 30 F.3d at 180 (quoting Town of Norwood v. FERC, 962 F.2d 20, 22 (D.C.Cir.1992)). Nonetheless, such review is not an empty gesture. Id. [T]he Commission must be able to demonstrate that it has 'made a reasoned decision based upon substantial evidence in the record,'  id. (quoting Town of Norwood, 962 F.2d at 22), and the path of [its] reasoning must be clear. Id. at 182.