Opinion ID: 2356885
Heading Depth: 1
Heading Rank: 3

Heading: Substantial Evidence of Order Violation

Text: Great Lakes next claims that there is no plausible reading of the West Brine Unit Order that would authorize the Commission to direct Great Lakes to return to the original accounting methodology contemplated in 1996 or to conclude that it had violated the order by unilaterally changing accounting procedures. Great Lakes asserts that its representation of costs to the Commission at the time of violation of the order were only estimates and that it should not now be bound to follow those estimates strictly. In sum, it contends that the circuit court's conclusion that substantial evidence supports the Commission's opinion that Great Lakes violated the West Brine Unit Order is in error. We first emphasize that Great Lakes admits it unilaterally changed accounting procedures in 1998. It further admits that it made this change without seeking permission from the Commission or Albemarle. At the hearing before the Commission in April 2004, Albemarle introduced a summary report of material changes in the accounting methodology by Great Lakes, which resulted in a drastic increase in costs to unit owners in the West Plant Unit after Great Lakes changed its accounting procedures. Taken together, the West Brine Unit Order, the Operating Agreement requiring a certain accounting methodology, and Great Lakes's admission to deviating from this methodology, as well as the summary report showing that Great Lakes's new methodology results in higher. costs assessed against Albemarle than previously contemplated under the West Brine Unit Order, confirm that there is substantial evidence of a violation. We affirm the Commission on this point.