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Section 556(e) of the Administrative Procedure Act ('APA') provides, '[w]hen an agency decision rests on official notice of a material fact not appearing in the evidence in the record, a party is entitled, on timely request, to an opportunity to show the contrary.' 5 U.S.C. § 556(e). In Union Electric Co. v. FERC, 890 F.2d 1193, 281 U.S. App. D.C. 388 (D.C. Cir. 1989), the court interpreted § 556(e) in light of pre-APA decisions involving challenges to official notice, identifying two prerequisites: 'First, the information noticed must be appropriate for official notice. Second, the agency must follow proper procedures in using the information, disclosing it to the parties and affording them a suitable opportunity to contradict it or 'parry its effect.'' Id. at 1202. The court viewed Treasury bond rates to be a type of information that was appropriate for official notice because such information is not typically subject to dispute. Id. at 1202-03. Union Electric, however, had raised 'substantial objections' to the Commission's apparent assumption of a linear relationship between the trend for Treasury bond rates and Union Electric's cost of equity capital. Id. at 1203. The court held that, despite Union Electric's 'partial ...

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