The U.S. Court of Appeals for the Ninth Circuit has ruled that natural gas local distribution companies (LDCs) in California are no longer immune from antitrust actions caused by their activities in the natural gas vehicle (NGV) industry. The decision clears the way for a federal district court to hear a complaint lodged against Southern California Gas, a local distribution company (LDC), by two California corporations engaged in the NGV refueling business.
The refueling companies had claimed that the LDC attempted to dominate the market by offering NGV fleet operators "free or virtually free" installation and maintenance of vehicle refueling facilities. The district court dismissed the complaint, ruling that the LDC was immune from such suits under the "state action" doctrine.