Opinion ID: 3033689
Heading Depth: 2
Heading Rank: 1

Heading: the fpa unambiguously excludes governmental

Text: ENTITIES AND NON-PUBLIC UTILITIES FROM FERC’S REFUND AUTHORITY We must first consider whether the FPA clearly addresses FERC’s authority to order refunds from governmental entities/non-public utilities that sold electric energy in the markets operated by CalPX and ISO. To determine whether Congress spoke directly to the precise question at issue, we apply the traditional tools of statutory interpretation. See, e.g., Irvine Med. Ctr. v. Thompson, 275 F.3d 823, 828-30 (9th Cir. 2002). The dispute centers on whether the general applicability of the FPA to “the sale of electric energy at wholesale in interstate commerce,” contained in § 201(b)(1), overrides more specific FPA provisions that exclude non-public utilities and governmental entities from FERC’s authority to enforce just and reasonable rates and to order refunds. See §§ 201(f), 205, and 206. The import of these provisions is clear. Congress was careful to specify which utilities fall within the definition of “public utility.” Even though governmental and municipal utilities are public in normal parlance, they are not “public utilities” under the FPA. BONNEVILLE POWER v. FERC 12279 FERC derives its refund authority from subchapter II of the FPA, which governs the regulation of electric utility companies engaged in interstate commerce. Two discrete aspects of subchapter II inform our analysis and cabin FERC’s authority: 1) section 201(f)’s exemption for governmental entities, and 2) section 201(e)’s definition of “public utility” and the limitation of certain authority to public utilities in sections 205 and 206. With this backdrop in mind, we now examine the role these provisions play in determining the scope of FERC’s jurisdiction.
[1] Section 201(f) of the FPA provides that governmental entities are not subject to the provisions of subchapter II of the FPA unless specifically stated in the relevant provision: (f) United States, State, political subdivision of a State, or agency or instrumentality thereof exempt No provision in this subchapter shall apply to, or be deemed to include, the United States, a State or any political subdivision of a State, or any agency, authority, or instrumentality of any one or more of the foregoing, or any corporation which is wholly owned, directly or indirectly, by any one or more of the foregoing, or any officer, agent, or employee of any of the foregoing acting as such in the course of his official duty, unless such provision makes specific reference thereto. FPA § 201(f) (emphasis added). [2] The sweep of this exemption is huge. Nothing in subchapter II applies to the United States or any state, including any political subdivision, unless the statute makes specific reference to any of these entities. By way of shorthand, this exemption is generally viewed as applicable to “governmental 12280 BONNEVILLE POWER v. FERC entities.” Each of the utilities here, except AEPCO,4 falls within the general exclusion. The BPA is an agency of the United States,5 and the SWC is an instrumentality of the state of California.6 The remaining utilities are each classified as a “municipality”7 as defined in § 3(7) of the FPA (16 U.S.C. § 796(7)). A municipality is, of course, a “political subdivision of a State.” See FPA § 201(f). A search of subchapter II for specific reference to FERC’s jurisdiction over governmental entities for refund purposes comes up empty-handed for FERC. It is also significant that Congress did in fact specify particular provisions of subchapter II as applicable to governmental entities for limited purposes. Sections 210-213 (16 U.S.C. §§ 824i-824l) of the FPA refer to “electric utilities,” which are defined as “any person or State agency (including any 4 AEPCO is a non-profit rural electric generation and transmission cooperative that obtained some of its financing through the Rural Utilities Service (“RUS”), and is subject to a RUS mortgage under the federal Rural Electrification Act of 1936. Sierra Southwest Coop. Servs., Inc., 95 FERC ¶ 61,310, at 62,057 (2001). We agree with the D.C. Circuit’s conclusion in City of Paris v. Fed. Power Comm’n, 399 F.2d 983, 986 (D.C. Cir. 1968), that Rural Electrification Administration (now RUS)-financed cooperatives are not government instrumentalities for the purposes of § 201(f) because “[t]hey are neither operated nor controlled by any government, federal, state or local.” 5 16 U.S.C. § 832a(a). The BPA is a federal agency within the Department of Energy and a government seller of power whose rates are regulated by the Northwest Power Act, 16 U.S.C. §§ 839-839g—not the FPA. Because BPA falls within § 201(f)’s exemption of all governmental entities, we need not address BPA’s additional arguments regarding its status under the Northwest Power Act. 6 See www.publicaffairs.water.ca.gov/swp/contractors_intro.cfm (last visited July 5, 2005). Further, the SWC does not fall within the definition of a public utility because it does not own or operate facilities subject to the jurisdiction of FERC. 7 A “municipality” is defined as “a city, county, irrigation district, drainage district, or other political subdivision or agency of a State competent under the laws thereof to carry on the business of developing, transmitting, utilizing, or distributing power.” BONNEVILLE POWER v. FERC 12281 municipality) which sells electric energy.” FPA § 3(22) (16 U.S.C. § 796(22)). As elaborated below, this definition is broader in scope than the definition of “public utility.” See FPA § 201(e) (16 U.S.C. § 824(e)). Congress was mindful, however, to establish that the regulatory authority over governmental entities contained in these provisions of the FPA should not be construed to subject such electric utilities to the general jurisdiction of FERC: The provisions of sections [210, 211 and 212] shall apply to the entities described in such provisions, and such entities shall be subject to the jurisdiction of the Commission for purposes of carrying out such provisions and for purposes of applying the enforcement authorities of this chapter with respect to such provisions. Compliance with any order of the Com- mission under the provisions of section [210 or 211], shall not make an electric utility or other entity subject to the jurisdiction of the Commission for any purposes other than the purposes specified in the preceding sentence. FPA § 201(b)(2) (16 U.SC. § 824(b)(2)) (emphasis added). When Congress wanted a provision of FPA subchapter II to apply to governmental entities, it knew how to so specify. To its credit, FERC does not try to duck the clear import of the statutory requirement; rather, FERC argues that we should ignore the identity of the sellers and look instead to the subject matter—FERC’s broad powers over wholesale sales of electric energy under FPA § 201(b)(1), which states that the FPA applies to “the sale of electric energy at wholesale in interstate commerce.” This argument ignores a basic principle of statutory construction, namely that the specific prevails over the general. See Santiago Salgado v. Garcia, 384 F.3d 769, 774 (9th Cir. 2004) (holding a specific statutory provision will control a general one). FERC’s approach could also render a nullity multiple provisions of the FPA. For example, 12282 BONNEVILLE POWER v. FERC § 201(f) would be unnecessary. If FERC could invoke plenary jurisdiction over “the sale of electric energy,” then Congress could have saved time and ink by not bothering to narrow that jurisdiction. And § 201(b)(2), which makes clear that FERC does not have broad jurisdiction over electric utilities, would have been superfluous.
[3] The second limitation on FERC’s jurisdiction stems from the definition of “public utility” and the unambiguous dictate of §§ 205 and 206 that those sections apply only to public utilities. [4] Before looking at the scope of FERC’s refund authority, it is important first to identify the statutory provision in subchapter II that defines “public utility.” The term “public utility” when used in this subchapter and subchapter III of this chapter means any person who owns or operates facilities subject to the jurisdiction of the Commission under this subchapter (other than facilities subject to such jurisdiction solely by reason of section 824i, 824j, or 824k of this title). FPA § 201(e) (16 U.S.C. § 824(e)). The FPA’s definition of “person” does not include municipalities or state agencies. “Person” means an “individual or a corporation,” FPA § 3(4) (16 U.S.C. § 796(4)), and the definition of “corporation” specifically excludes “municipalities,” FPA § 3(3) (16 U.S.C. § 796(3)). As noted earlier, “municipality” includes cities, counties, irrigation and drainage districts, and other state agencies and subdivisions that are in the power business. FPA § 3(7). Under these definitions, none of the municipal/state Public Entities is categorized as a “public utility” because they are not individuals and because municipalities and state agencies are specifically excluded from the definition of corBONNEVILLE POWER v. FERC 12283 poration. We have no reason to consider BPA’s status under these provisions as there is no question that it is exempt as an agency of the United States under § 201(f). We diverge for a moment to consider the status of AEPCO, which requires a more detailed analysis of its classification as a non-public utility. Pursuant to Dairyland Power Coop., 37 FPC 12 (1967), FERC does not consider AEPCO to be a “public utility” within the Commission’s FPA jurisdiction. See Sierra Southwest Coop. Servs., 95 FERC ¶ 61,310, at 62,057 n.7 (2001) (explaining that AEPCO, a RUS-financed cooperative, is not a public utility under the FPA). Based on Dairyland and Sierra Southwest, AEPCO appears to fall outside FERC’s § 206(b) refund authority because it is not a public utility and § 206(b) refers only to public utilities. Nonetheless, FERC urges us to hold that AEPCO is a public utility. FERC relies on equivocal language in a D.C. Circuit decision that suggested some RUS-financed cooperatives could be considered public utilities. In deferring to FERC’s conclusion in Dairyland that RUS-financed cooperatives generally are not public utilities, the D.C. Circuit stated in a footnote that [i]f the Commission had found that conditions in the power industry had so changed that generating cooperatives now did fall within its jurisdiction, this court would be faced with a different issue. For just as the Commission’s determination here that it is without jurisdiction is entitled to judicial deference, so would be its determination that it had the requisite authority. Salt River Project Agric. Improvement and Power Dist. v. Fed. Power Comm., 391 F.2d 470, 474 n.8 (D.C. Cir. 1968) (internal citation omitted). The D.C. Circuit noted that RUSfinanced cooperatives “do seem to fall within the ambit of the [FPA’s] central phrase, ‘public utilities,’ ” id. at 474, but 12284 BONNEVILLE POWER v. FERC agreed with FERC that the legislative history surrounding the FPA and Rural Electrification Act permitted it to defer to FERC’s conclusion that Congress did not intend to regulate cooperatives through the FPA as public utilities. Id. at 475-77. FERC has, until its appellate brief in this proceeding, treated AEPCO as a non-public utility. FERC has offered nothing in the record to support its change of position nor did its refund orders single out AEPCO for treatment as a public utility. We cannot accept FERC’s post-hoc rationalization for ordering refunds from AEPCO.8 Consequently, in this proceeding we treat AEPCO as a non-public utility but without prejudice to reclassification by FERC in a different proceeding. [5] FERC’s rate jurisdiction under § 205 and its refund jurisdiction under § 206 expressly apply only to public utilities, again reinforcing the definitional and scope provisions of the statutory scheme. For example, § 205’s requirement that all rates for sales of electric energy must be “just and reasonable” applies only to public utilities and includes no specific reference to governmental entities as would be required to escape the broad exemption in § 201(f). FPA § 205(a) (16 U.S.C. § 824d(a)) (“All rates and charges made, demanded, or received by any public utility for or in connection with the 8 FERC’s orders during the California energy crisis specifically treated AEPCO as a non-public utility equivalent to a governmental entity. 99 FERC ¶ 61,160, at 61,660 n.62 (2002) (“AEPCO also asked for clarification that, for purposes of the December 19 order, RUS-financed cooperatives receive the same treatment as ‘governmental entities.’ The December 19 order was sufficiently clear that discussions regarding governmental entities include non-public utilities such as RUS-financed cooperatives.”). A February 2005 FERC order held that “Central Iowa is a Rural Utility Service (RUS)-financed electric cooperative and, thus, is not a Commission-regulated ‘public utility’ under the FPA.” Cent. Iowa Power Coop. v. Midwest Indep. Transmission Sys. Operator, Inc., 110 FERC ¶ 61,093 (2005). Long after its orders in the California refund cases, FERC continued to treat RUS-financed cooperatives as non-public utilities. BONNEVILLE POWER v. FERC 12285 transmission or sale of electric energy subject to the jurisdiction of the Commission, and all rules and regulations affecting or pertaining to such rates or charges shall be just and reasonable, and any such rate or charge that is not just and reasonable is hereby declared to be unlawful.” (emphasis added)). [6] Notably, FERC’s authority under §§ 206(a) and (b) to investigate rates and to order refunds for unjust and unreasonable rates is limited to “any rate, charge, or classification, demanded, observed, charged, or collected by any public utility for any transmission or sale subject to the jurisdiction of the Commission”; again, no specific reference is made to governmental entities or non-public utilities. FPA § 206(a) (16 U.S.C. § 824e(a)) (emphasis added); see also FPA § 206(b) (16 U.S.C. § 824e(b)) (“At the conclusion of any proceeding under this section, the Commission may order the public utility to make refunds of any amounts paid, . . . in excess of those which would have been paid under the just and reasonable rate, charge, classification, rule, regulation, . . . .” (emphasis added)). Again, FERC attempts to counter the clear language of the FPA by shifting the analysis away from the identity of the sellers, and focusing instead on the nature of their transactions and the markets and tariffs under which these transactions were conducted. FERC acknowledged in its July 25, 2001 Order that “we do not have direct regulatory rate authority over power sales by non-public utilities,” 96 FERC ¶ 61,120, at 61,511 (2001), but concluded that it could still reach the sales of the Public Entities. FERC emphasizes that ISO and CalPX were public utilities that operated FERC-jurisdictional wholesale electricity markets and had FERC-approved tariffs and that the sales in the ISO and PX markets, whether by public utilities or governmental entities/non-public utilities, involved wholesale sales of electric energy in interstate commerce that are within FERC’s § 201(b)(1) jurisdiction. Id. at 61,513 (“[T]he [Public Entities’ transactions], wholesale sales of energy in interstate commerce, were governed by FERC12286 BONNEVILLE POWER v. FERC approved rules and a FERC-jurisdictional ISO and [CalPX]. Those transactions thus fell within FERC’s jurisdiction regardless of the jurisdictional nature of the sellers or buyers.”). FERC relies on these observations about the jurisdictional status of the ISO and CalPX and their markets to reach around the limits of § 201(f): While [FPA § 201(f)] exempts governmental entities generally from Commission jurisdiction under Part II of the FPA, it does not do so under the specific cir- cumstances here. Here, governmental entities and others sold energy in a centralized, single clearing price auction market under which all sellers received the same price for a given sale, pursuant to market rules set by this Commission and administered by public utilities (the California PX and ISO) subject to this Commission’s jurisdiction. The involvement of the PX and ISO, whose roles are central in these California spot markets, along with the nature of the interstate wholesale sales, give us subject matter jurisdiction entirely independent of the jurisdictional nature of the entities selling into the markets at issue. Thus, FPA section 201(f) does not change the analysis or the result in determining whether we have subject matter jurisdiction over the sales at issue. 97 FERC ¶ 61,275, at 62,181-82 (2001). FERC attempts to deflect our attention away from the fact that it is ordering refunds from the Public Entities by arguing that FERC is simply using its §§ 205 and 206 authority to reset the prices of the single-price auction to a just and reasonable level: Our action thus revises the market clearing prices that all market participants previously agreed to BONNEVILLE POWER v. FERC 12287 accept for their sales. In this context, we see no reason to treat non-public utility sellers differently, as they are receiving the same price, the just and reasonable market clearing price established pursuant to market rules approved by this Commission, that they expected to obtain for their wholesale sales into the centralized ISO and PX spot markets. 96 FERC ¶ 61,120, at 61,512 (2001); see also 97 FERC ¶ 61,275, at 62,182 (2001). ISO similarly tries to cast FERC’s orders as resetting the market clearing price under FERCjurisdictional tariffs and characterizes the refunds by the Public Entities as just a “byproduct” of the resettlement of the ISO and CalPX markets. The rationale advanced by FERC and ISO is flawed. Perceiving FERC’s orders as effecting a reset market clearing price for all spot market sales under the ISO and CalPX tariffs, rather than as an order for refunds under § 206(b), ignores the explicit language of FERC’s July 25, 2001 Order: The Commission has determined that all sellers of energy in the California ISO and PX spot markets should be subject to refund liability for the period beginning October 2, 2000. We have decided to extend refund liability to public and non-public utility sellers based on our review of the controlling law, the involvement of both types of sellers in the California centralized ISO and PX spot markets, and the equities of the situation. 96 FERC ¶ 61,120, at 61,511 (footnote omitted). We cannot conclude that FERC said “refund” but meant resettlement of the market-clearing price. FERC’s order does more than simply reset the marketclearing price for power in the FERC-jurisdictional ISO and CalPX markets. FERC specifically ordered governmental 12288 BONNEVILLE POWER v. FERC entities/non-public utilities to pay refunds, an action that lies outside Congress’s clearly expressed intent that FERC’s § 206 refund authority should apply only to public utilities. In addition, the fact that ISO and CalPX were public utilities is irrelevant because FERC is ordering refunds from the governmental entities/non-public utilities, not ISO or CalPX themselves. Indeed, it would be one thing for FERC to order CalPX and ISO to operate the market in a different fashion or to set a market-clearing price for power on a going-forward basis, but the retroactive imposition of a market price that effects a refund responsibility is a regulatory action that falls outside of FERC’s jurisdiction with respect to non-public utilities and governmental entities. FERC’s attempt to order refunds based on its general jurisdiction over wholesale sales of electric energy in interstate commerce contained in § 201(b)(1) contravenes the more specific provisions of the FPA that limit FERC’s authority over governmental entities, see § 201(f), and limit FERC’s authority to ensure just and reasonable rates and to order refunds to “public utilities,” see §§ 205, 206(b). In sum, the text and structure of the FPA are unambiguous: Chevron deference is not due where FERC’s authority to order refunds under § 206(b) is specifically limited to “public utilities” and no explicit reference to governmental entities is made in § 206(b), as required by § 201(f). FERC tries to escape the clear dictates of the statute by referring to the FPA’s legislative history. This effort is unavailing. Legislative history cannot trump the statute. See Am. Rivers, 201 F.3d at 1204 (“[W]e are mindful that this Court steadfastly abides by the principle that ‘legislative history—no matter how clear—can’t override statutory text.’ ” (quoting Hearn v. W. Conference of Teamsters Pension Trust Fund, 68 F.3d 301, 304 (9th Cir. 1995) (citations omitted); see also Columbia Gas Transmission Corp., 404 F.3d at 461 (noting that we “ ‘must give effect to the unambiguously expressed intent of Congress,’ regardless of the BONNEVILLE POWER v. FERC 12289 interpretation pressed by the Commission”) (quoting Chevron, 467 U.S. at 843). [7] In any event, FERC’s own interpretation of the legislative history in a previous administrative order belies its argument in this case. In a 1998 FERC proceeding, when asked to interpret § 201(f)’s legislative history, FERC concluded that Congress deliberately put governmental entities, such as states and municipalities, outside of FERC’s jurisdiction: The legislative history of the FPA shows clearly that Congress was deliberate and careful in its efforts not to impose FPA public utility regulation on states and municipalities, even if they transmitted power across state lines. The Senate Report on the bill, for example, stated, “The revision has also removed every encroachment upon the authority of the States,” and noted that a new subsection 201(e) [which later became 201(f)] “has been added to remove all doubt that the act is not to apply to public projects, Federal, State, or municipal.” New West Energy Corp., 83 FERC ¶ 61,004, at 61,018 (1998) (footnotes omitted) (alteration in original). Although, as FERC now argues,9 the motivation behind § 201(f) in 1935 9 FERC quotes the following portion of the Senate Report: [Subsection (f)] has been added to remove all doubt that the act is not to apply to public projects, Federal, State or municipal. Despite repeated assurances by representatives of the Federal Power Commission that no such authority was intended, the charge was frequently made that the bill as originally introduced authorized the Commission to compel private utilities to establish connection or exchange power with public plants. This new subsection carries out in unmistakeable terms the original intention of the bill in this respect. S. Rep. No. 74-621, at 19 (1935). Whatever the intention in terms of protecting private utilities, both the statutory language and this paragraph are at odds with FERC’s position in this proceeding. 12290 BONNEVILLE POWER v. FERC may have been to prevent government-owned utilities from gaining a competitive advantage over private utilities, Congress unambiguously removed government-owned utilities from FERC’s refund jurisdiction.10 II. FERC’S PRIOR CONTROLLING INTERPRETATION OF ITS AUTHORITY UNDER FPA §§ 205 AND 206 IS CONSISTENT WITH A PLAIN READING OF THE FPA [8] Although we recognize that the California energy crisis was extraordinary, the fact remains that it does not alter FERC’s statutory authority. It should be obvious that FERC cannot invoke a “one-time” rule for this circumstance. FERC’s long-standing interpretation of §§ 205 and 206 confirms that governmental entities/non-public utilities lie outside its rate-making and refund authority. As referenced above, FERC concluded in New West Energy that Congress expressed its clear intent through § 201(f) that the FPA was to “ ‘subject private enterprise alone to regulation by the Federal Power Commission, and not to extend that regulation to government and its instrumentalities.’ ” 83 10 Although we do not read too much into legislative amendments occurring after the FERC decision in this case became final, we note that in August 2005, Congress passed legislation to amend FERC’s § 206 refund authority. The legislation amends § 206 to extend FERC’s refund authority to entities described in § 201(f) if the entity makes a voluntary, shortterm sale of electricity through an organized market in violation of FERC rules or tariffs. The new authority does not apply to cooperatives or to municipal or Federal utilities that sell less than 8 million MWh of electricity per year. Energy Policy Act of 2005, Pub. L. No. 109-___, § 1286, ___ Stat. ___, ___ (2005); see also S. Rep. No. 109-78, at 52 (2005); 151 Cong. Rec. H6969 (daily ed. July 28, 2005) (statement of Rep. Barton, Conference Committee Chairman). This amendment suggests that because existing law did not permit FERC to order refunds from governmental entities, Congress felt the need to create an exemption to § 201(f) and limited that exemption to governmental entities selling large quantities of power. In any event, the adoption of this amendment comports with our interpretation of the FPA. BONNEVILLE POWER v. FERC 12291 FERC ¶ 61,004, at 61,018 (1998). New West Energy, a governmental entity, sought § 205 approval from FERC to sell electric energy at market-based rates. FERC refused to exercise its § 205 rate authority over New West Energy, even with New West Energy’s consent, because §§ 205 and 206 do not extend FERC’s authority to governmental entities: The statute is thus clear that Part II of the FPA, which contains Sections 205 and 206, shall not apply to any political subdivision of a state or any corporation wholly owned by a political subdivision of a state, unless the provision makes specific reference thereto. Sections 205 and 206 provide the Commis- sion authority over the rates, terms, and conditions of jurisdictional service by public utilities. Those sections do not make reference to the entities listed in Section 201(f). Id. at 61,015. We see no justification for reading §§ 201(f), 205, and 206 any differently in this case. In a proceeding even more analogous to this case than New West Energy, FERC again emphasized that its § 206 refund authority did not apply to governmental entities/non-public utilities. In Mid-Continent Area Power Pool, 89 FERC ¶ 61,135 (1999) (“MAPP”), Enron Power Marketing, Inc., sought refunds from both public utility and non-public utility members of a transmission power pool operating under a joint open-access transmission tariff. FERC refused to order refunds from one of the governmental entities that was a member of the power pool: [W]e address Nebraska District’s request that we clarify that the Commission’s refund direction in the April Order does not apply to nonpublic utility members of a power pool. We note that Nebraska Dis- trict, as a utility owned and operated by the State of Nebraska, is not a public utility under the FPA. 12292 BONNEVILLE POWER v. FERC Therefore, we cannot assert jurisdiction over Nebraska District, and the requirements in our April Order apply only to the public utility members of MAPP (since they are within our jurisdiction). Id. at 61,387 (footnotes omitted).11 [9] Similar to the situation in the MAPP proceedings, here both public utilities and governmental entities/non-public utilities were selling electric energy in the wholesale markets operated by ISO and CalPX. Just as in MAPP, FERC’s § 206 refund authority extends only to the public utilities selling in the ISO and CalPX wholesale markets. FERC’s long-standing interpretation of its authority under § 206 reinforces the clear and unambiguous intent of Congress—governmental entities/ non-public utilities lie outside FERC’s jurisdiction even when engaged in wholesale sales of electric energy. 11 FERC reiterated its refusal to order refunds under § 206 from the Nebraska District in two subsequent decisions in the MAPP case: “The tariffs and agreements on file with us are subject to our jurisdiction. MAPP’s jurisdictional public utility members are subject to our jurisdiction, but Nebraska District is not. Therefore, when we ordered MAPP to make refunds we clearly meant MAPP, on behalf of its jurisdictional public utility members.” 92 FERC ¶ 61,229, at 61,755 (2000). In another order, FERC stated: The Commission clarifies that its prior orders found that MAPP had overcharged transmission customers served under its jurisdictional transmission tariff and that full refunds were owed by MAPP. However, because Nebraska District, although a member of the pool and a party to the Restated Agreement, refused to pay refunds and is not subject to our jurisdiction as a public utility under Sections 205 and 206 of the FPA, we recognized that we cannot enforce the refunds requirement against Nebraska District. 91 FERC ¶ 61,353, at 62,182 (2000). BONNEVILLE POWER v. FERC 12293 III. THE UNITED DISTRIBUTION COMPANIES CASE IS NOT APPLICABLE Other than FERC’s own new-found interpretation of its refund authority under § 206, the only significant legal authority the Commission points to is the D.C. Circuit’s decision in United Distribution Cos. v. FERC, 88 F.3d 1105 (D.C. Cir. 1996) (“UDC”), which construed the jurisdictional provisions of the Natural Gas Act. Although this case provides some support for FERC’s argument, it is no small matter that it involved a completely different statute, and it falls far short of persuading us of FERC’s position. [10] FERC claims that UDC supports its focus on the subject matter of the transactions and the central role of CalPX and ISO in the California markets, rather than the identity of the sellers, as grounds for exercising refund authority. In UDC, which involved interpretation of the Natural Gas Act and FERC’s gas pipeline regulations, the court upheld FERC’s requirement that municipalities must comply with FERC’s capacity release regulations when they purchase transportation capacity on a FERC-jurisdictional interstate pipeline and then seek to release, or resell, any unused capacity. 88 F.3d at 1149-50, 1154. The Natural Gas Act includes provisions similar to the FPA that extend FERC’s jurisdiction over only “natural-gas companies” and over interstate transportation of natural gas with municipalities typically lying beyond the reach of FERC’s jurisdiction. Id. at 1153-54. The court concluded, however, that FERC could require municipalities to comply with its capacity release regulations, relying on the subject matter of the transactions and the central role of a jurisdictional pipeline in the capacity transactions: FERC may, consistent with the [Natural Gas Act], require municipalities to comply with its capacity release regulations. As we explained above, . . . FERC’s transportation jurisdiction extends as a separate matter over capacity release given the involve12294 BONNEVILLE POWER v. FERC ment of interstate gas pipelines. The pipelines’ role in capacity release is absolutely central, and the transaction itself controls access to interstate transportation capacity, entirely independent of the jurisdictional nature of the releasing and replacement shippers. Id. at 1154 (footnotes omitted). [11] The D.C. Circuit’s focus on the jurisdictional nature of the subject matter of the transaction—transportation of natural gas in interstate commerce—and the central role of a FERCjurisdictional pipeline does not translate to the same result here. Significantly, the Natural Gas Act does not include a provision analogous to FPA § 201(f), which exempts governmental entities. Furthermore, UDC did not involve the question whether FERC may order refunds from governmental entities. UDC therefore does not provide a framework that permits FERC to ignore the clear language of the FPA. The FPA clearly states in § 201(f) that the provisions of subchapter II of the FPA, including FERC’s §§ 205 and 206 rate and refund authority, do not apply to governmental entities unless the governmental entities are specifically referenced. Section 206 only gives FERC the authority to order refunds from public utilities.