[1]     

UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT August Term, 1996

, [5]     

Decided: December 17, 1996

, [6]      IN RE: MEGAN-RACINE ASSOCIATES, INC., DEBTOR " />

Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Official citation and/or docket number and footnotes (if any) for this case available with purchase.

Learn more about what you receive with purchase of this case.

In Re Megan-Racine Associates Inc., 102 F.3D 671 (2d Cir. 12/17/1996)

UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT August Term, 1996

Nos. 754, 793, 794

Docket Nos. 96-5076(L), -5084, -5086

102 F.3d 671, 1996.C02.0000608 <http://www.versuslaw.com>

Decided: December 17, 1996

IN RE: MEGAN-RACINE ASSOCIATES, INC., DEBTOR

Before LUMBARD, OAKES and MAHONEY, *fn1 Circuit Judges.

[8]    

Argued: October 9, 1996

[9]    

Federal Deposit Insurance Corporation, as Receiver for New Bank of New England, N.A., and Hudson Engineering Corporation,

Creditors-Appellants,

Megan-Racine Associates, Inc.,

Debtor-Appellant, v.

Niagara Mohawk Power Corporation,

Creditor-Appellee.

Appeal from a decision of the United States District Court for the Northern District of New York (Pooler, J.), reversing an order of the United States Bankruptcy Court. The Court of Appeals holds that a power generation facility need not have met federal efficiency and operation standards to be covered by a grandfather provision that was part of a 1992 amendment to New York Public Service Law Section(s) 66-c.

Reversed and remanded.

OAKES, Senior Circuit Judge:

This appeal raises a simple issue of statutory interpretation, but is set in a complex factual and legal background. The Federal Deposit Insurance Corporation ("FDIC"), Megan-Racine Associates, Inc. ("Megan"), and Hudson Engineering Corp. ("Hudson") appeal a Memorandum-Decision and Order of the United States District Court for the Northern District of New York, Rosemary S. Pooler, Judge, dated July 12, 1996, which reversed a decision of the United States Bankruptcy Court for the Northern District of New York, Stephen D. Gerling, Chief Bankruptcy Judge, and a judgment entered on July 16, 1996. All three appeals concern the construction to be given to a grandfather provision that was part of a 1992 amendment to New York's Public Service Law Section(s) 66-c. Megan and the FDIC advance substantially the same arguments about the construction of the statute, while Hudson raises questions concerning the jurisdiction of and standard of review applied by the district court. We agree with the bankruptcy court's construction and therefore reverse. Background.

The appeals arise from a bankruptcy proceeding in which Niagara Mohawk Power Corporation ("Niagara") seeks to limit the amount it owes under a Power Purchase Agreement ("PPA") between Niagara and debtor Megan, the developer and owner of a power generation facility located in Canton, New York. A fire and explosion on May 2, 1996, destroyed parts of the facility and halted its operation; the decision as to whether to rebuild the plant has been delayed in anticipation of our resolution of this expedited appeal. When it was operational, the facility burned natural gas to generate steam, some of which was transformed into electrical power and sold to Niagara under the terms of the PPA. Federal law classifies such facilities as co-generators, and they receive special regulatory benefits.

Niagara is of course a public utility which generates and distributes electricity in upstate New York, subject to the jurisdiction of the New York Public Service Commission ("PSC") and the Federal Energy Regulation Commission ("FERC"). Pursuant to the Public Utility Regulatory Policies Act of 1978 ("PURPA"), Niagara is required to purchase power from facilities like Megan's.

Hudson is the design contractor for the Canton facility, and the chairman of the Unsecured Creditors Committee in the Chapter 11 proceeding currently before the bankruptcy court. The FDIC, as Receiver for New Bank of New England, N.A., ("NBNE") is the holder of a note, mortgage, and security interest granted by Megan to the bank in connection with a loan of $47 million which financed the development of the facility.

PURPA was enacted by Congress as part of an initiative to promote independent power generation, and thus to reduce this country's dependence on foreign oil. See FERC v. Mississippi


02 VersusLaw, Inc.


Buy This Entire Record For $7.95

Official citation and/or docket number and footnotes (if any) for this case available with purchase.

Learn more about what you receive with purchase of this case.