City of Willcox v. Federal Power Commission

567 F.2d 394, 185 U.S. App. D.C. 287
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 30, 1977
DocketNos. 74-2123, 75-1019, 75-1062, 75-1245, 75-1246-75-1248
StatusPublished
Cited by14 cases

This text of 567 F.2d 394 (City of Willcox v. Federal Power Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Willcox v. Federal Power Commission, 567 F.2d 394, 185 U.S. App. D.C. 287 (D.C. Cir. 1977).

Opinions

Opinion for the court filed by Circuit Judge MacKINNON.

Opinion filed by BAZELON, Chief Judge, concurring in part and dissenting in part.

MacKINNON, Circuit Judge:

The natural gas shortage necessitating curtailment of deliveries on the El Paso Natural Gas System is the subject of the present appeal. Recognizing that decreasing availability would soon cause severe hardship, the Federal Power Commission issued Order No. 431 in April of 1971. By that order, all jurisdictional pipelines were required to file new tariffs with the Commission to provide for rationing of natural gas among eventual users. El Paso complied on July 6, 1971, submitting a contingency plan that allocated scarce natural gas according to the ultimate consumers contracts with their suppliers, and reflecting the total amounts of gas that the consumers had used in the past.

In August of 1972, after hearings had been held before the FPC, the original proposal was withdrawn. El Paso requested the FPC to issue an interim curtailment plan, to be effective until a permanent plan could issue. On October 31,1972, the Commission released Opinion No. 634 (J.A. 315, Tr. 13355) which established an interim plan, awarding natural gas allotments to the various distributors on the basis of the eventual use to which the gas would be put. A modification followed with Opinion No. 634A (J.A. 339, Tr. 13746), issued on December 15, 1972. The challenge to this interim plan was decided in American Smelting and Refining Co. v. FPC, 161 U.S.App.D.C. 6, 494 F.2d 925, cert. denied, 419 U.S. 882, 95 S.Ct. 148, 42 L.Ed.2d 122 (1974) (hereinafter, “ASARCO ”). The attack was made by many of the same petitioners here and was, in large part, sustained.

On June 14, 1974, a permanent curtailment plan was announced for the El Paso System. See Opinion No. 697 (J.A. 411, Tr. 16587). Once again, a supplementary opinion was required; this was issued in Opinion No. 697A on December 19, 1974 (J.A. 484, Tr. 17080). Opinion No. 697 was also an “end-use” curtailment plan. It was ordered to be treated only as an interim plan (in Opinion No. 697A), until an environmental impact statement had been completed. El Paso was required to file a set of revised tariffs in keeping with Opinions No. 697 and 697A.1 That is the present status of the plan.

Opinions No. 697 and 697A classify all ultimate users of natural gas into five priorities, with residential and small commercial users receiving top priority, and large volume industrial boiler users with alter[294]*294nate fuel capabilities receiving lowest priority.2

Seven petitioners now press objections to the proposed permanent curtailment plan.3 Fifteen other parties have intervened as amid curiae4 Many conflicting objections are raised, some of which have merit. Eight questioned areas will be separately addressed. In our review the Federal Power Commission’s authority is to be especially respected in matters of policy and logistics; consistency must be maintained in applying the Commission’s policy judgments; complaints rooted in particular circumstances can best be treated on specific application for relief by the concerned parties to the Commission; and the settled law from this circuit and others which have addressed curtailment will, in the absence of importantly different circumstances, govern the resolution of complaints raised here.

I. SCOPE OF REVIEW

Initially, there is some dispute as to what provision of the Natural Gas Act provides the Federal Power Commission with the authority to review and promulgate curtailment plans. In Opinion No. 634, dealing with an interim curtailment plan, the Commission cited FPC v. Louisiana Power & Light Co., 406 U.S. 621, 92 S.Ct. 1827, 32 L.Ed.2d 369 (1972), which upheld the Commission’s authority to issue Order No. 431 requesting natural gas distributors to file curtailment plans. “While that affirmance was based primarily upon a tariff filing under Section 4 of the Natural Gas Act,” the FPC stated in Opinion No. 634, “we are also operating pursuant to Section 55 and [295]*295166 of the Act in this case.” (Footnotes inserted.)

When Opinion No. 634 was before this court in ASARCO, we held that although section 16 of the Act empowered the Commission to alter and promulgate proposed curtailment plans, that section required reliance on section 5(a) of the Act as a “core section” to provide the substantive counterpart to section 16’s procedural authority. The brief of El Paso as intervenor argues that the permanent curtailment plan, unlike the interim plan, was premised on section 4 of the Act as the “core section,” but there is no basis for this in the Commission’s Orders No. 697 or 697A. Nor could there be, since the Commission in these orders is imposing its changes on the curtailment plans, rather than merely suspending El Paso’s proposed plan. For the purpose of imposing an alternate plan, section 5 is necessary. “Whenever the Commission shall find that any classification ... or that any rule, regulation, practice, or contract affecting such . . . classification is unjust, unreasonable, unduly discriminatory, or preferential, the Commission shall determine the just and reasonable . . . classification, . . . practice, or contract to be thereafter observed and in force, and shall fix the same by order . . . ” 15 U.S.C. § 717d(a) (1970). Sections 1(b) and 16 afforded ample authority to issue the general order requesting curtailment plans to be evaluated under section 4(b) (as the Supreme Court held in Louisiana Power) or to suspend a proposed rate change, but nowhere in section 4 is there granted the power to impose alternate rates.

The importance of the statutory section from which the Commission’s action takes its legitimacy was pointed out by the Fifth Circuit in Louisiana v. Federal Power Commission, 503 F.2d 844 (5th Cir. 1974). In Louisiana, an interim curtailment plan had been issued, followed by a permanent plan with modifications. Since the interim plan had been promulgated after a section 4 hearing, the Commission was on record as having found it to be not unreasonable or discriminatory. “[W]hen FPC holds a hearing and orders a new curtailment plan, or revises an old one, it is exercising authority granted by section 5(a) of the Natural Gas Act. . . . Under that section, however, before FPC can issue a remedial order it must find that the existing curtailment plan is ‘unjust, unreasonable, unduly discriminatory, or preferential.’ ” 503 F.2d at 861.

Similarly, in this case, the interim plan was promulgated as one meeting the standard of not “unjust, unreasonable, unduly discriminatory, or preferential.” Accordingly, those aspects of Opinion No. 697’s rate structure that amend the structure of Opinion No. 634 must be justified for reasons sufficient to uphold the change (and not merely the new structure) under a substantial evidence standard.

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Bluebook (online)
567 F.2d 394, 185 U.S. App. D.C. 287, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-willcox-v-federal-power-commission-cadc-1977.