Centerpoint Class Action Must Proceed Before the Arkansas Public Service Commission
The Arkansas Supreme Court granted a writ of prohibition denying jurisdiction to the trial court in CenterPoint Energy, Inc. v. Miller County Circuit Court, No. 06-1294 (6/7/07).
Plaintiffs filed a class action against CenterPoint Energy and other companies alleging a scheme to increase energy rates to Texas and Arkansas consumers. The complaint stated claims for fraud and unjust enrichment rather than increased rates. The defendants moved to dismiss, arguing that the Arkansas Public Service Commission ("APSC") has exclusive jurisdiction of disputes regarding energy rates.
The trial court denied the motion to dismiss, and the defendants filed a writ of prohibition. The APSC submitted an amicus curiae brief supporting the grant of the writ. The supreme court reviewed similar cases from numerous other states that held jurisdiction lied in public utility commissions. Moreover, the court found persuasive that the Legislature granted the APSC "sole and exclusive jurisdiction" over public utility rates. See A.C.A. § 23-4-201(a)(1).
The supreme court granted the writ, but only to the extent it placed jurisdiction of Arkansas consumers under the APSC. The court refused to exercise jurisdiction over Texas consumers in this case.
