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6. In this case, the court should
The power company files an action in the federal district court in the state requesting a declaratory judgment that this new state statute forbidding public utility rate increases more often than once every two years is unconstitutional. Assume no federal statute is relevant.
A state legislature recently enacted a statute forbidding public utilities regulated by the state's public service commission to increase their rates more than once every two years. A power company, a public utility regulated by that commission, has just obtained approval of the commission for a general rate increase. The power company has routinely filed for a rate increase every ten to 14 months during the last 20 years. Because of uncertainties about future fuel prices, the power company cannot ascertain with any certainty the date when it will need a further rate increase; but it thinks it may need such an increase sometime within the next 18 months.
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A is incorrect. There is no vested property right that the company can claim has been injured.
B is incorrect. There has been no injury that would allow a court to really determine whether this legislation is rationally related to a legitimate interest.
D is incorrect. Article III provides no exemption for state-regulated utility rates. And, in fact, if the parties presented a case or controversy, the constitutionality of the rate regulation would raise a federal question.