Southern Natural Gas Co. v. Federal Power Commission

543 F.2d 530, 18 P.U.R.4th 124
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 13, 1976
DocketNos. 76-3914, 76-3971, 76-3990 and 76-3991
StatusPublished
Cited by2 cases

This text of 543 F.2d 530 (Southern Natural Gas Co. v. Federal Power Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Southern Natural Gas Co. v. Federal Power Commission, 543 F.2d 530, 18 P.U.R.4th 124 (5th Cir. 1976).

Opinion

BY THE COURT:

The petition of Southern Natural Gas Company in cause number 76 — 3914 seeks review of Federal Power Commission orders dated May 28 and September 14,1976 relating to the implementation of a curtailment plan for the equitable distribution of an inadequate supply of natural gas on the United Gas Pipe Line Co. system. The Court sua sponte issued an order to the Federal Power Commission and United Gas Pipe Line Company on October 29, 1976, requiring them to show cause on November 5, 1976, why the Court should not enforce its mandate issued February 5, 1976, in Louisiana Power and Light Co. v. F. P. C., 526 F.2d 898. That show cause hearing having been duly held, the Court enters the following findings and conclusions:

FINDINGS

1. In Order No. 431, 45 FPC 570 (1971), the Federal Power Commission (Commission) directed natural gas companies subject to its jurisdiction which expected to curtail deliveries to either file a curtailment plan with the Commission, or state that their existing curtailment plans were adequate. United Gas Pipe Line Company (United) filed a proposed five category curtailment plan on May 17, 1971.

2. On October 5, 1971, the Commission issued Opinion No. 606, 46 FPC 786. That opinion rejected Category V of United’s five-priority plan which consisted of customers who were paying a comparatively low rate for their gas. Additionally, the Commission ordered United to file new tariff sheets containing a four-priority plan to be used on an interim basis pending hearing on its merits as a permanent plan. The four-priority plan filed by United contained the following four categories:

I. Gas ultimately used by domestic customers;
II. Gas used by direct industrial customers for feedstock purposes;
III. Gas used to generate electricity which is consumed by domestic customers; and
IV. Gas used for all other industrial purposes.

The Commission accepted the revised tariff sheets but deferred any ruling upon the justness and reasonableness of the four-priority plan. That plan remained in effect from November 14, 1971, until the issuance of Opinion No. 647, 49 FPC 179 (1973).

3. In Opinion No. 647, issued January 12, 1973, the Commission, inter alia, determined that United’s past curtailment practices, including the four-priority plan, were just and reasonable during the periods that they had been in effect (49 FPC at 195). However, for future curtailment United was ordered to immediately consolidate priorities III and IV of the interim four-priority plan pending the implementation of a new permanent plan.

[532]*5324. On November 8, 1974, this Court issued its decision in Louisiana, et a 1. v. F. P. C., 503 F.2d 844, vacating and remanding Opinion Nos. 647 and 647-A.

5. On March 7, 1975, the Commission issued an order on remand from . State of Louisiana, supra, in which it determined that the four-priority plan was just, reasonable and non-discriminatory prior to Opinion No. 647, but that “it would have been unjust and unreasonable and unduly discriminatory, within the meaning of Sections 4 and 5 of the [Natural Gas] Act, to continue the boiler fuel preference for domestic electric generation beyond the date of Opinion No. 647.” The Commission ordered United to “continue curtailment under the three category interim plan in the manner prescribed by Opinion Nos. 647 and 647 — A, until further order of the Commission.”

6. On October 31, 1975, the Commission issued an order approving a one year settlement between the parties in the United docket.

7. On February 5, 1976, in Louisiana Power & Light Co. v. F. P. C., 526 F.2d 898, the Court found that while the Commission’s findings on the alternate fuel capability of boiler fuel users were supported by substantial record evidence, its findings on the irreparable harm to United's direct market industrial customers which would result from the implementation of the four-priority plan were not supported by record evidence. This Court stated:

[T]his is the last year during which the three-priority plan will remain in operation without the support of a proper finding on the invalidity of the four-priority plan. Absent proper compliance by the Commission with our decision on remand, the four-priority plan will control curtailment on the United system for the 1976-77 winter heating season, 526 F.2d at 911.

8. On April 1, 1976, United, acting in accordance with the Commission approved settlement of October 31, 1975 filed revised tariff sheets containing a proposed permanent curtailment plan.

9. On May 28, 1976, the Commission accepted United’s April 1, 1976 filing as of June 1, 1976, but suspended the tariff for the maximum five-month period so as to cause such tariff to become effective November 1,1976, the date of the beginning of the 1976-77 winter heating season.

10. On September 14,1976, the Commission denied rehearing of its May 25, 1976 order.

11. On October 28, 1976, United moved to make its filing effective.

12. Curtailment under United’s tariff filing is inconsistent with the provisions of the four-priority plan.

13. Since the remand of Louisiana Power & Light Co, supra, the Commission has not made “a proper finding on the invalidity of the four-priority plan.”

14. Neither the Commission, United, nor any party affected by this Court’s mandate of February 5, 1976 or by United’s tariff filing, has advised this Court of the direct conflict between the mandate and United’s tariff created by the Commission’s inactions or sought modification of, or relief from, the Court’s mandate prior to the commencement of the 1976-77 winter heating season.

CONCLUSIONS

I- This Court has jurisdiction to make this order under its inherent power to enforce the mandate in Louisiana Power & Light Co. v. F. P. C., 526 F.2d 898 (1976).

2. That mandate is clear and unambiguous. In the absence of a proper commission finding on the invalidity of the four-priority plan, the four-priority plan controls curtailment on United’s system for the 1976-77 winter heating season.

3. The Court in Louisiana Power & Light Co. v. F. P. C., supra, determined that the Commission had sufficient evidence on the alternate fuel capability of electric utilities to justify the subordination of boiler fuel, as an inferior use in United's curtailment plan.

4. Neither the Court nor the Commission has an adequate record basis to adjudicate the priority entitlement, if any, of the [533]*533approximately 1800 direct market industrial customers served by United.

5.

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543 F.2d 530, 18 P.U.R.4th 124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-natural-gas-co-v-federal-power-commission-ca5-1976.