Potomac Electric Power Company v. Interstate Commerce Commission and United States of America, Consolidated Rail Corporation, Intervenor

702 F.2d 1026, 226 U.S. App. D.C. 289
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 31, 1983
Docket81-2375
StatusPublished
Cited by63 cases

This text of 702 F.2d 1026 (Potomac Electric Power Company v. Interstate Commerce Commission and United States of America, Consolidated Rail Corporation, Intervenor) 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
Potomac Electric Power Company v. Interstate Commerce Commission and United States of America, Consolidated Rail Corporation, Intervenor, 702 F.2d 1026, 226 U.S. App. D.C. 289 (D.C. Cir. 1983).

Opinion

TAMM, Circuit Judge:

Potomac Electric Power Company (PEP-CO) seeks review of an order of the Interstate Commerce Commission (Commission) reopening a proceeding initiated in 1974 by appellant PEPCO to protest rates charged by intervenor-respondent Consolidated Rail *1028 Corporation (Conrail) for hauling coal to three of PEPCO’s generating plants. We find that, in the context of this case, the Commission has unreasonably delayed disposition of PEPCO’s complaint and invoke the power granted this court in 5 U.S.C. § 706(1) (1976) to order the Commission to proceed expeditiously to a final resolution of PEPCO’s complaint.

I. Commission Proceedings

The administrative proceedings leading to this appeal trace their ancestry to a complaint filed by appellant PEPCO with the Commission on December 23, 1974. In its complaint before the Commission, PEPCO attacked the lawfulness of freight charges levied by certain eastern railroads for hauling coal from various eastern mines to three of PEPCO’s electric generating stations in Maryland, located at Herbert (Chalk Point station), Woodzell (Morgantown station), and Dickerson (Dickerson station). In its first decision in these proceedings, issued more than two years later, the Commission held that neither the unit-train rates nor the trainload 1 rates to Chalk Point and Morgantown were shown to be unreasonable, but that the trainload rate for shipping coal to the Dickerson station was unjust and unreasonable in violation of section 1(5) of the Interstate Commerce Act. 2 Potomac Electric Power Co. v. Penn Central Transportation Co. (PEPCO I), 356 I.C.C. 815, 823, 826-218 (1977). In addition, the Commission refused to order the Penn Central to publish unit-train tariffs for coal shipments in carrier-supplied rail cars. Id. at 828.

The proceeding was reopened for the limited purpose of determining the maximum trainload rates to be charged for service to the Dickerson station and the effect of that maximum rate on the structure of eastbound coal rates. Id. Subsequently, in proceedings not now on review, the Commission prescribed a revenue-to-variable cost ratio of 190 percent as the maximum trainload rate for coal shipped to the Dickerson station. Potomac Electric Power Co. v. Penn Central Transportation Co. (PEPCO II), 359 I.C.C. 222, 240 (1977). Reparations for past overcharges were denied, id. at 241, but the Commission stated that carriers were on notice that from the date of the PEPCO II decision, October 21, 1977, reparations would be awarded. 3 Id. The Commission affirmed its PEPCO II decision following a petition for reconsideration filed by some of the rail carriers affected. Potomac Electric Power Co. v. Penn Central Transportation Co. (PEPCO III), 359 I.C.C. 849, 863-64 (1978).

PEPCO sought review in this court of the portion of the Commission’s decision in PEPCO I that affirmed the unit-train rates as not being unreasonable and that upheld Penn Central’s right to refuse to publish rates for unit-train service in carrier-supplied cars. We held that the Commission acted properly in refusing to order Conrail, successor to the Penn Central, to offer and publish the requested rates for unit-train service in carrier-supplied cars, but remanded the case to the Commission for further consideration of the unit-train rates at issue. Potomac Electric Power Co. v. United States, 584 F.2d 1058, 1067 (D.C.Cir.1978). We took this action for two primary rea *1029 sons: because the Commission failed to consider the use of average rate-to-variable cost ratios in determining the reasonableness of unit-train rates, when it had stated that such average cost ratios were relevant; and because the Commission had not adequately explained the reasons for certain actions or policies pursued in its decision. Id. at 1064.

The Commission’s response to our mandate was to reopen the proceedings to consider new evidence and additional issues relating to the reasonableness of the contested rates. Potomac Electric Power Co. v. Consolidated Rail Corp., No. 36114 (Sub-No. 1) (I.C.C. Apr. 10, 1979), reprinted in Potomac Electric Power Co. v. Consolidated Rail Corp. (PEPCO IV), 362 I.C.C. 169,192-95 (1980). Because significant changes had occurred in the unit-train coal shipments at issue, the Commission began an entirely new hearing, although the record developed in PEPCO I was brought into the new proceedings. PEPCO IV, 362 I.C.C. at 187. In PEPCO IV the Commission applied to the contested rates a new standard of reasonableness that was developed in a series of Commission proceedings involving coal shipments from western mines. Id. at 188-90. This new standard established as reasonable rail rates that included fully allocated costs, 4 a 10.6 percent after-tax return on capital and an added margin of 7 percent to permit differential pricing. 5 The existing record developed in PEPCO I was held inadequate to support a finding under this new standard, and the parties were requested to submit additional evidence relating to the movements of coal to PEPCO’s three generating plants. Id. at 187-88.

Before this new standard was applied to the evidence submitted in this case, the Commission adopted yet another set of standards for determining maximum rates in coal shipments. Responding to our remand for further proceedings in San Antonio, Texas v. United States, 631 F.2d 831 (D.C.Cir.1980), the Commission proposed replacing the ratio method adopted in the western coal proceeding with a methodology that utilized ton/ton-mile cost figures 6 and which eliminated some additives to rates. Coal Rate Guidelines Nationwide [Ex Parte No. 347 (Sub-1)], 45 Fed.Reg. 80,370 (Proposed Guidelines Dec. 4, 1980). Although our remand in San Antonio pertained to movements of coal from Wyoming coal mines to a power plant near San Antonio, the Commission proposed to use the ton/ton-mile methodology for reviewing rates for all coal shipments. Id. at 80,371.

*1030 The methodology proposed in Ex Parte No. 347 (Sub-1) was incorporated into the reopened PEPCO proceeding. After considering new evidence submitted by the parties, an administrative law judge (ALJ) determined that the unit-train tariffs at issue were unreasonably high. Potomac Electric Power Co. v. Consolidated Rail Corp., No. 36114 (Sub-No. 1) at 14, (I.C.C.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Trujillo v. Jaddou
District of Columbia, 2025
Ahmed v. Gable
District of Columbia, 2023
Jain v. Jaddou
N.D. California, 2023
Wilkes v. Blinken
E.D. Missouri, 2022
Am. Acad. of Pediatrics v. U.S. Food & Drug Admin.
330 F. Supp. 3d 657 (District of Columbia, 2018)
Netcoalition v. Securities & Exchange Commission
715 F.3d 342 (D.C. Circuit, 2013)
NetCoalition v. SEC
D.C. Circuit, 2013
Families for Freedom v. Napolitano
628 F. Supp. 2d 535 (S.D. New York, 2009)
In Re Core Communications, Inc.
531 F.3d 849 (D.C. Circuit, 2008)
The Fund for Animals v. Norton
294 F. Supp. 2d 92 (District of Columbia, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
702 F.2d 1026, 226 U.S. App. D.C. 289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/potomac-electric-power-company-v-interstate-commerce-commission-and-united-cadc-1983.