Consolidated Edison Co. of New York, Inc. v. Federal Power Commission

511 F.2d 372, 167 U.S. App. D.C. 134, 1974 WL 333514
CourtCourt of Appeals for the D.C. Circuit
DecidedNovember 26, 1974
DocketNos. 73-1999, 73-2017, 74-1150, 74-1200, 74-1184 and 74-1231
StatusPublished
Cited by14 cases

This text of 511 F.2d 372 (Consolidated Edison Co. of New York, Inc. 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
Consolidated Edison Co. of New York, Inc. v. Federal Power Commission, 511 F.2d 372, 167 U.S. App. D.C. 134, 1974 WL 333514 (D.C. Cir. 1974).

Opinion

PER CURIAM:

Oral argument in these three groups of consolidated appeals was heard on November 21, 1974. In addition to the issues presented on the merits of petition[138]*138ers’ claims, we asked counsel in Consolidated Edison v. FPC to address themselves to a number of motions recently filed by petitioners, intervenors and the FPC, as respondent, in that case. We deal presently only with the problems raised in these motions, to which a speedy response is sought by all parties and required by the onslaught of winter and a deepening shortage of natural gas. A full understanding of our response requires a brief review of the background litigation.

Petitioners in all three cases are customers of natural gas pipeline companies — Transcontinental Gas Pipe Line Corporation (Transco); Southern Natural Gas Company (Southern); Panhandle Eastern Pipe Line Company (Panhandle). They contest the legality of service curtailment plants filed by the pipelines reflecting the priorities outlined in FPC Order No. 467,1 as modified by Order No. 467-B.2 In each case, prior to the issuance of Order No. 467 on January 8, 1973, the pipeline had filed an interim curtailment plan negotiated among its own customers under FPC Order No 431. And in each case, after attempts to extend the interim plan, or to file revised plans not in accord with Order No. 467,3 the pipeline submitted a plan more or less consistent with the requirements of the order.

Appeals were filed from FPC orders effectuating the 467-type plans, and petitioners in each case moved for a stay pendente lite. In two cases, those involving Transco and Southern, the stays were granted.4 In terms of the need for any immediate order of the court, it was accepted by Commission counsel, and was the prevailing consensus at oral argument, that the present situation — with a stay in effect. in the Southern case, and the stay denied in Panhandle — was likely to be as protective of customers during the coming winter as any alternative.5 The current controversy centers on whether the stay in the Transco case should continue in effect, and if so, how it should be shaped to give protection against irreparable harm.

Our initial order in the Transco case was issued November 9, 1973. It was clarified on December 14, 1973, to make explicit our intent that the existing interim plan, which would have been replaced by the 467-type plan under the administrative orders in dispute, remain in effect “until further order of this court.” In the fall of 1974 the Commission requested a further clarification of our stay, in light of ongoing negotiations between the pipeline and its customers to reach a new interim settlement plan. On October 4, 1974, we gave this explanation:

Our orders of November 9, 1973 and December 14, 1973 do not permit the Federal Power Commission to impose [139]*139a new interim plan on the Transcontinental Pipeline Corporation (Transco) for the year November 16, 1974 through November 15, 1975. Our orders of November 9 and December 14 do not, however, prevent Trans-co from submitting a new interim plan to the Commission under section 4 of the Natural Gas Act, nor do they affect the Commission’s power to implement such a plan or to suspend it pending hearings.

Meanwhile, on September 30, 1974, Transco had filed an interim settlement plan to supercede the one in effect. The Commission rejected the settlement on November 12, 1974.6 Transco filed a 467-type interim plan the following day, stating that “the Commission having rejected the proposed interim settlement, Transco has no choice other than to make this filing. . . . ”7 The Commission’s action of November 12, and the prospect that a 467 interim plan would be submitted and approved as a result, triggered a number of filings in this court. Petitioners and intervenors in the case moved to continue the status quo, asking in effect that Transco and the Commission be required to retain the existing interim plan. We responded provisionally in our order of November 15, 1974, in which we directed the parties to take no steps affecting the status quo pending further order of the court. The Commission has since moved for the immediate dissolution of all of our stay orders. And to complicate matters even further, Transco has filed an appeal from the Commission’s order of November 12 and has also moved that we order the Commission to permit the pipeline to place the interim settlement into effect pending our adjudication on the merits.

Our consideration of the present motions takes place against the background of substantial claims raised by petitioners on the merits in these cases. Petitioners’ chief claim is that the 467-type plans were not filed voluntarily by the pipelines but were the result of coercion by the FPC. See Moss v. CAB, 139 U.S.App.D.C. 150, 430 F.2d 891 (1970). If this is correct, of course, the plans are invalid, as the Commission cannot impose a change in an existing tariff without compliance with the requirements of section 5 of the Natural Gas Act, which the Commission admits were not met here. Petitioners point to evidence of arm-twisting, both in the language of Order No. 467-B itself8 and in the circumstances under which the pipelines relented to the Commission’s desires.9 Trans-co’s appeal from the November 12th order also presents a substantial question under Michigan Consolidated Gas Co. v. FPC,10 which required that the Commission give reasoned consideration to settlement proposals offered by parties in proceedings before it. Although the Commission did “consider” the interim settlement agreement, its stated reasons for rejecting the plan may be inconsistent with prior FPC decisions11 and do not include allocational considerations at all. Resolution of these substantial questions will require careful scrutiny of [140]*140the case law and the complex factual situations presented by each case.

The power of this court to grant injunctive relief pendente lite in cases seeking review of FPC orders was established in Virginia Petroleum Jobbers Ass’n v. FPC.12 In ruling on the present motions involving our prior stay orders, we recognize that “it is principally the protection of the public interest with which we are here concerned [and] no artificial restrictions of the court’s power to grant equitable relief in the furtherance of that interest can be acknowledged. * * * We must determine how the court’s action serves the public best.”13

A court not only has the authority to shape the contours and limit the duration of the relief granted by its order, but may “revoke or modify its mandate, if satisfied that what it has been doing has been turned through changing circumstances into an instrument of wrong.”14 As Justice Cardozo has observed, “[a] continuing decree of injunction directed to events to come is subject always to adaptation as events may shape the need.”15 We believe that this court not only has equitable discretion to respond to changing circumstances but has a responsibility to take corrective action when its prior orders threaten to foster rather than forestall irreparable harm.16

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584 F.2d 1003 (D.C. Circuit, 1978)
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Bluebook (online)
511 F.2d 372, 167 U.S. App. D.C. 134, 1974 WL 333514, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-edison-co-of-new-york-inc-v-federal-power-commission-cadc-1974.