Municipal Electric Utility Ass'n v. Federal Power Commission

485 F.2d 967, 158 U.S. App. D.C. 188, 2 P.U.R.4th 321
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 29, 1973
DocketNos. 72-1293, 72-1294
StatusPublished
Cited by18 cases

This text of 485 F.2d 967 (Municipal Electric Utility Ass'n 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
Municipal Electric Utility Ass'n v. Federal Power Commission, 485 F.2d 967, 158 U.S. App. D.C. 188, 2 P.U.R.4th 321 (D.C. Cir. 1973).

Opinion

LEVENTHAL, Circuit Judge:

These petitions to review1 attack orders of the Federal Power Commission [190]*190which denied .-motions to reject a rate filing of Alabama Power Company,2 presented by various of its customers, Alabama municipalities and rural electric cooperatives engaged in the retail distribution of electric power.

At the outset of this controversy, Alabama Power’s interstate wholesales of electric energy3 to Petitioners were made pursuant to 46 individual contracts, providing for delivery at 121 separate locations. These contracts, all negotiated, were filed with the Commission as rate schedules.4 They contain various and differing terms and conditions of service, and called for deliveries at a fixed price for the duration of the contract. The contracts had various termination dates, ranging from January 3, 1972, to April 17, 1976.5

On November 1, 1971, Alabama Power tendered for filing under § 205(d) of the Federal Power Act, 16 U.S.C. § 824d(d), a new tariff schedule applicable to all “electric service provided by Alabama Power Company to municipal distribution systems . . . and rural distribution cooperative . . . .” (R. at 915). In addition to a substantial rate increase over the contract levels, the new tariff embodied a variety of terms and conditions — including automatic tax and fuel cost adjustment provisions- — that differed significantly from those of the negotiated contracts. Most important, it placed all wholesale sales on a uniform basis, at a single rate and under identical conditions of service. In place of the individual contracts, all sales were to be made pursuant to service agreements (short form contracts) that incorporated by reference the terms and conditions of the new tariff.

Under the terms of the filing, Alabama Power proposed that the new tariff schedule “became effective January 3, 1972, or the earliest date thereafter in accordance with existing contracts with [the affected] customers.” (R. at 916, emphasis supplied). The tariff was to be applied to all new, service contracted for after the proposed effective date. As to service under existing contracts, however, the new tariff was to become applicable only “as of the date of contractual termination [of service] at [each existing] delivery point.” (R. at 917). Hence once outstanding agreements expired, all future service would be rendered under the terms of the proposed tariff. The conversion of municipal and distribution cooperative sales from an individual basis to a single standardized tariff, would become complete in 1976.

On November 15, 1971, the FPC issued a Notice of Proposed Changes in [191]*191Rates and Charges.6 Petitioners filed timely intervention petitions, protests, and motions to reject the Alabama Power filing, objecting that the tendered filing: (1) violated § 205 of the Federal Power Act; (2) was premature and in violation of §§ 35.3 and 35.13 of the FPC’s Regulations; and (3) violated the Economic Stabilization Act of 1970, as amended.7

By order issued December 30, 1971,8 the Power Commission denied Petitioners’ motions to reject the rate filing, granted the petitions to intervene, scheduled hearings to determine whether the proposed rate was just and reasonable, and suspended the effective date of the rate schedule until February 2; 1972.9 Applications for reconsideration were denied on February 11,1972.10

A. Matters Relating to Jurisdiction

1. Issues Under Economic Stabilization Act

Petitioners raise various contentions that the proposed rate increase was so grossly excessive, and the automatic adjustment provisions so patently contrary to the intent of the Stabilization Act, that the Commission should treat the entire filing as a substantive nullity,11 and that the FPC’s refusal to suspend the rate schedule for five months violated the Price Commission’s-regulations, § 300.16(i)(3).12 These are issues arising under the Economic Stabilization Act, and — to the extent these are currently viable — they are cognizable in the district courts (and, on appeal, the Temporary Emergency Court of Appeals) and not before this court.13 Municipal Intervenors Group v. FPC, 153 U.S.App.D.C. 373, 473 F.2d 84 (1972).

2. Issues Under Federal Power Act

Petitioners’ other contentions, however, arise not under the Economic Stabilization Act but wholly under the Federal Power Act and FPC regulations promulgated thereunder. As to these matters, section 313 of the Federal Power Act mandates: Upon filing of the administrative record, in a pertinent court of appeals, it has exclusive jurisdiction “to affirm, modify, or set aside” the Commission’s order on such grounds. See 16 U.S.C. § 8251(b); City of Tacoma v. Taxpayers of Tacoma, 357 U.S. 320, 335-341, 78 S.Ct. 1209, 2 L.Ed.2d 345 (1958).

In Municipal Intervenors Group we stated: “The circumstance that utilities are subject to two types of regulatory control raises the possibility of two types of judicial review.” 14 While both aspects of the Commission’s regulatory jurisdiction are reflected in the order sought to be reviewed, the issues on appeal arising under the Federal Power Act may be cleanly severed from those that require consideration of the Eco[192]*192nomic Stabilization Act.15 We believe that an entirely harmonious accommodation of the two pertinent Congressional enactments can be achieved by dual review of the Commission’s order in both this court and the District Court, each tribunal acting within the sphere of its statutorily defined exclusive jurisdiction. Finding that the exercise of our jurisdiction under section 313 would not constitute an embarrassment to the separate jurisdiction of the District Court of the Economic Stabilization Act, we consider the issues properly cognizable under section 313.

B. Propriety of the Filing Under Section 205(d)

Petitioners first contend that Alabama Power’s filing represents a unilateral attempt to supplant its contractual service obligations and to impose a rate increase not consented to by its customers and in contravention of its agreements with them16 Were this the case, the filing could not be accepted under section 205(d),17 and Alabama Power’s only recourse would be to request that the FPC institute proceedings under section 206(a) of the Act,18 to show that the existing contract rate was so unremunerative as to be affirmatively unlawful. FPC v. Sierra Pacific Power Co., 350 U.S. 348, 76 S.Ct. 368, 100 L. Ed. 388 (1956).

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Bluebook (online)
485 F.2d 967, 158 U.S. App. D.C. 188, 2 P.U.R.4th 321, Counsel Stack Legal Research, https://law.counselstack.com/opinion/municipal-electric-utility-assn-v-federal-power-commission-cadc-1973.