A recent case arising out of the California electricity transmission industry presented an important question for California electricity municipalities. In Sacramento Mun. Util. Dist. v. F.E.R.C., ---- F.3d ----, No. 04-1171, 2005 WL 2848964 (D.C. Cir. Nov.1, 2005), the legal issue was whether the Sacramento Municipal Utility District (SMUD) had a right of first refusal to extend current electricity transmission capacity contracts with California utilities pursuant to FERC Order 888, or whether