Public Service Commission for the State of New York v. Federal Power Commission, Humble Oil & Refining Company, Intervenors

463 F.2d 883
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 12, 1972
Docket71-1298
StatusPublished
Cited by4 cases

This text of 463 F.2d 883 (Public Service Commission for the State of New York v. Federal Power Commission, Humble Oil & Refining Company, Intervenors) 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
Public Service Commission for the State of New York v. Federal Power Commission, Humble Oil & Refining Company, Intervenors, 463 F.2d 883 (D.C. Cir. 1972).

Opinion

PER CURIAM:

The Federal Power Commission, after a rule-making proceeding, issued an order that changed its prior policy in regard to suspensions of rate increases filed by natural gas producers, and in regard to temporary certificates issued to producers offering new supplies of gas. Instead of a general policy of 5-month suspensions, as permitted by Congress in § 4(e) of the Natural Gas Act, 1 the FPC adopted a general policy of one-day suspensions, which preserved its ability to order refunds after hearing, but permitted the increased rate to become effective promptly. This change was in the public interest, the FPC concluded, in view of inflationary conditions in the natural gas industry, and recently intensified requirements of natural gas. As issued on February 18, 1971, Order No. 423 provided:

(A) Section 2.56, in Part 2, General Policy and Interpretations, Chapter I, Title 18 of the Code of Federal Regulations, is amended by adding a new paragraph (g) to read as follows:
§ 2.56 Area price levels for natural gas sales by independent producers. * * * * * *
(g) If the Commission decides to suspend a rate change filing made by an independent producer under Section 4(d) of the Natural Gas Act, and such rate change is filed at least 60 days prior to its proposed effective date, the suspension period will be one day from the proposed effective date, or one day from the date of initial delivery, whichever is later, unless the Commission waives the notice period required herein or imposes a longer suspension period.

Petitions for reconsideration were filed, inter alia, by petitioner Public Service Commission of New York and by a distributing utility, Philadelphia Gas Works Division of UGI Corporation. On reconsideration, the FPC modified its previous action by an order dated March 22, 1971, so as to provide a full five-month suspension period for certain rate increases. In the statement accompanying this order the FPC set forth (footnotes omitted):

The general reasons for shortening suspension periods for producer rate filings are discussed in Order No. 423. No useful purpose would be served by repeating that discussion here.
New York and PGW, however, also object to the shortened suspension periods in certain specified rate proceedings. These proceedings involve 39 sales in the Gulf Coast Area (Texas R.R. Dist. Nos. 2, 3 and 4) where the producers have sought increased rates ranging from 160 to 280 per Mcf and one sale from Texas R.R. Dist. No. 6, which is in the Other Southwest Area, where the producer seeks an increased rate of 190 per Mcf. Most of these sales are old sales. Of the 40 proposed increased rates in the Gulf Coast Area, one is at 280, three are at 250, five are at 24.-250, four are at 220, and the remainder are at or below 210. Both the Gulf Coast and the Other Southwest cases are pending before this Commission on exceptions to initial decisions by Presiding Examiners. The just and reasonable rates for sales in these areas should therefore be determined soon.
In the meantime, however, we believe the February 18 order should be modified so as to withdraw the shortened suspension period for those increased rates which are in excess of 210 per Mcf. As a result, those in *885 creased rates above 210 per Mcf will remain under suspension for the full five month period previously ordered prior to the February 18 order.
We do not mean by our action to suggest either that proposed rates not in excess of 210 per Mcf are just and reasonable or that proposed rates in excess of 210 per Mcf are necessarily not just and reasonable. We believe, however, that where the proposed rate for a sale of gas of the vintage involved here in the Gulf Coast Area exceeds 210 per Mcf, the ultimate consumer is entitled to the protection of a full five month suspension period. The rate of 210 per Mcf corresponds to the 22.3750 per Mcf rate limitation established for increased rate filings in Southern Louisiana.
Similarly, there are certain other sales in Permian,. Mississippi, Texas R.R. Dist. Nos. 2, 3, 4 and 6, and the Aneth-Utah Area, which were not specifically mentioned by New York or PGW, involving proposed increased rates above the corresponding limitations imposed in Southern Louisiana. These proposed increased rates shall also remain under suspension for the full five month period previously ordered.

The case is before us on a petition to review FPC’s Order 423, as revised. Certain jurisdictional questions may readily be resolved. This court has jurisdiction of an “order” entered in a rule-making proceeding. City of Chicago, Illinois v. FPC, 147 U.S.App.D.C. 312, 458 F.2d 731 (1971). We reject the claim, raised in the brief for Amoco Production Company, that this appeal is premature.

Another jurisdictional question is related to our decision in Municipal Light Boards of Reading and Wakefield, Massachusetts v. FPC, 146 U.S.App.D.C. 294, 450 F.2d 1341 (1971), cert. denied, 405 U.S. 989, 92 S.Ct. 1251, 31 L.Ed.2d 455 (1972). We there held- that this court does not have jurisdiction to review the FPC’s exercise of discretion to grant a one-day suspension, in the absence of a claim of violation of a plain statutory mandate, or of error on the face of the record.

The ruling in Municipal Light Boards is not dispositive as to the case at bar. There is a contention here that the statute contemplates a five-month suspension as the “norm,” and that the order under appeal violates that plain statutory directive. 2 Another contention is that the FPC order now challenged is invalid on the face of the record. The contention is that since the law entrusts to the FPC the function of exercising its discretion as to suspension determinations, it cannot abdicate that function by adopting a general policy of one-day suspensions.

Petitioner does not claim that the FPC must look into each case afresh and de novo. It agrees that producer regulation reasonably requires a general rather than a particular approach, cf. Permian Basin Area Rate Cases, 390 U. S. 747, 88 S.Ct. 1344, 20 L.Ed.2d 312 (1968). Petitioner also agrees that the guidelines set some years ago, for deciding at what triggering points to suspend new rate increases, are not frozen, and *886 that the FPC may revise the price levels that will trigger suspensions in the light of today’s economic conditions of rising costs and supply needs. But petitioner contends it is inherently unreasonable for the FPC to determine on a general policy of suspensions effective for only one day, that is applicable without regard to the level reached in the application for increased prices.

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463 F.2d 883, Counsel Stack Legal Research, https://law.counselstack.com/opinion/public-service-commission-for-the-state-of-new-york-v-federal-power-cadc-1972.