FERC last week denied a request for rehearing by PPL of the commission’s Oct. 15 order that established hearing and settlement judge procedures in a complaint over the company’s base return on equity methodology (EL20-48).

On May 21, the PP&L Industrial Customer Alliance (PPLICA), an ad hoc group of PPL commercial and industrial customers, filed a complaint that alleged the company’s 11.18% base ROE was unjust and unreasonable and argued it should be 8%. On June 10, PPLICA filed a supplement to the initial complaint to reflect revisions to the commission’s ROE methodology developed in Opinion 569-A, recommending a replacement ROE of 8.5%. (See FERC Ups MISO TO ROE, Reverses Stance on Models.)

In the October order, FERC found that because PPLICA’s initial complaint was complete when it was filed in May, “consistent with the commission’s general policy of providing maximum protection to ratepayers,” the refund effective date would be set at the earliest date possible of May 21, the date of the PPLICA’s initial complaint.

PPL asserted that the commission’s determination that PPLICA’s initial complaint was complete when filed was arbitrary and capricious, with the company contending that the decision was unsupported by record evidence and FERC precedent.

“We continue to find, as set forth in the order on complaint, that PPLICA’s initial complaint was complete when filed,” FERC said. “As an initial matter, the commission’s issuance of Opinion No. 569-A did not render PPLICA unable to ‘move forward with the initial complaint’ or make it ‘likely’ that the commission would ‘have rejected PPLICA’s complaint’ without PPLICA’s supplement.”