Boston Edison Co. v. Federal Energy Regulatory Commission
United States Court of Appeals for the First Circuit
885 F.2d 962 (1989)
The Federal Energy Regulatory Commission (FERC) (defendant) lowered the rate of return Boston Edison Company (Boston Edison) (plaintiff) could charge on its electric rates, citing falling interest rates and rising stock prices. FERC based the adjustment on comparing U.S. Treasury bond interest rates from 1985 (used to set the old rate) against rates from September 1987 to March 1988 — figures that FERC never entered into the administrative record. On rehearing, Boston Edison was given a chance to challenge this rate-of-return adjustment and the evidence behind it. Boston Edison sued, arguing FERC violated the Administrative Procedure Act (APA) by relying on facts outside the record.
Whether, under the Administrative Procedure Act, a party is entitled to an opportunity to dispute a material fact that an agency officially notices but that is not contained in the administrative record.