Document: 475 U.S. 657 106 S.Ct. 1422 89 L.Ed.2d 661 UNITED STATES, Petitionerv.CITY OF FULTON et al. No. 84-1725. Argued Jan. 21, 1986. Decided April 7, Syllabus Section 5 of the Flood Control Act 1944 (Act) authorizes Secretary Energy (Secretary), acting through Administrators regional Power Marketing Administrations, to fix rates for sale hydroelectric power generated at federally owned dams, and provides that "the rate schedules [shall] become effective upon confirmation approval by Secretary." Pursuant Secretary's regulatory scheme, new increasing were developed Southwestern Administration after public participation, approved placed into effect on an interim basis, 1, 1979, ultimately a final basis Federal Regulatory Commission (the delegate) in January 1982. Respondent cities, who had entered purchase contracts with Government, paid increased then filed suit Court Claims recover money pursuant increase between 1979 1982, contending violated § terms putting basis. The question provided could be or modified such would "on date specified order [a predecessor respect 5] containing approval." ruled respondents liability subsequently organized later judgment their favor), Appeals Circuit affirmed. Held: Neither nor issue preclude from making approval, even though further administrative review is still pending. Pp. 665-672. (a) Although above-quoted language does not definitively speak rates, relevant federal agencies' practice (at least since mid-1970's) allowing as consistent statutory respondents' preferred arrangement. While legislative history resolve ambiguity, ratesetting reasonable accommodation Act's conflicting policies protecting consumers ensuring sold lowest possible sound business principles fisc programs own costs do require subsidies treasury. plan inconsistent congressional contend, ground plan's refund process if are found too high offers insufficient protection because refunds may successfully trickle down same ultimate immediately bore excessive charges. FPC v. Tennessee Gas Transmission Co., 371 145, 83 211, 9 199, distinguished. 666-671. (b) Nor increases violate contracts. contain no unambiguously barring imposition rates. Moreover, presented evidence demonstrating parties intended contractual language, which tracks statute, anything other than incorporate statute's procedural requirements. 671-672. 751 F.2d 1255, (Fed.Cir.1985), reversed. MARSHALL, J., delivered opinion unanimous Court. Andrew J. Pincus, Washington, D.C., petitioner. Charles F. Wheatley, Jr., respondents. Justice MARSHALL 1 This case presents whether 1944, 16 U.S.C. 825s, his obligations dams pending Commission. held actions exceeded authority, granted summary 230 Ct.Cl. 635, 680 115 (1982). After proceedings, affirmed, finding Claims' decision was law correct merits. 1255 (1985). We certiorari, 473 903, 105 3523, 87 649 (1985), we now reverse. 2 * A. 3 In Act, Congress authorized construction number dam reservoir projects, operated Army Corps Engineers producing large blocks power. authority several projects before but enacted "general governing distribution power" so generated. S.Rep. 1030, 78th Cong., 2d Sess., (1944). Intending "to place responsibility disposal existing agency," ibid., provided: 4 "Electric energy under control War Department required operation shall Interior, transmit dispose manner encourage most widespread use thereof principles, Rate drawn having regard recovery (upon application capacity electric facilities projects) cost transmitting energy, including amortization capital investment allocated over period years. . ." Ch. 665, 5, 58 Stat. 887, 890 (emphasis added) (codified amended 825s). sell turned him Interior created what eventually became five Administrations (PMAs). PMA assigned preparing supporting accounting allocation studies. There formal procedures participation preparation schedules, although some PMAs (not (SWPA), concerned this suit) began adopt starting late 1977. See 45 Fed.Reg. 86976 (1980). 6 When determining approve PMA's proposed utilized its "special expertise" "independent judgment" measuring proposal against standards. Bonneville Administration, 34 F.P.C. 1462, 1465 (1965).1 Because imposed particular proposals, largely free design own. Southeastern 54 1631, 1632, n. (1975). It affording notice comment customers affected when submitted schedule, granting requests oral argument hearing case-by-case 7 differ degree included Solicitor General cites instances did implement rates; answer those both isolated unrepresentative. Our examination historical record reveals beginning 1970's, announced intention examine proposals evidentiary records during course [adjudicatory] hearings," 808, 810 full hearings cross-examination witnesses.2 At time, adopted, cases, examining it and, appeared lie within boundaries, approving them hearing. any overcharges interest been high. (1975); 52 1912 (1974); see also 2498 (1977) (Federal Columbia River System Act). initially took view inappropriate Commission, however, explicitly rejected position. supra, 1632-1633; 59 1194, 1195 acquiesced Commission's view. ibid. B 8 scheme upset 1977, passage Organization 42 7101 seq. (DOE That designed "assur[e] coordinated administration policy programs," 7112, eliminated Interior's role regulation, abolished entirely. rate-proposing function transferred Energy, "acting [the] Administrators" PMAs. 7152(a)(2). well.3 institutionalized rate-approval He delegated Assistant Resource Applications develop, [PMA] administrators, confirm, approve, transmission marketing administrations." 43 60636 (1978) added).4 simultaneously (FERC) confirm disapprove, Ibid. Under give extensive 10 CFR 903.13 They provide all interested persons opportunity consult obtain information PMAs, backup data, 903.14. hold one more "public forums" regarding proposal. §§ 903.15, 903.16. Following consultation period, Administrator must develop which, judgment, should confirmed, approved, prepare statement explaining principal factors based. 903.21. Secretary, submits FERC approval. views "in nature appellate body," 79545, 79547 (1980); determine "due requirements have met [whether] Administrator's program [Assistant Secretary] rational standards." exercising function, relies it, remanding supplementation necessary. If disapproves confirmed has submit acceptable substitute Overcharges attributable refunded customers. 903.22 II 11 dispute involves price charged (SWPA) respondent cities Lamar, Fulton, Thayer, Missouri. Respondents United States first signed 1952, 1956, 1963 respectively; Lamar Fulton renewed early 1977 contract typical: 12 "It understood agreed and/or conditions set forth said Schedule 'F-1,' increased, decreased, modified, superseded, supplemented, time thereupon applicable Firm Contract accordance Ct.Cl., 638, F.2d, 117 deleted). 13 Provisions went unused long time. SWPA basic 1957 44 13068, 13069 (1979). Unfortunately, SWPA's remain constant. As result, annual revenues fell about $20 million short covering repaying investment. 14 considerable prodding, H.R.Rep. 95-1247, p. (1978); 95-1067, 53 2170 (1977); Water Development Appropriations 1980: Hearings Subcommittee House Committee Appropriations, 96th 1st 2995-2998 (1979), 1978 finally issued 42% increase. 16545 (1978). close studies scaling estimate necessary revenues, only 33%. On March 1979. Fed.Reg., 13073. 15 June 1981, disapproved insufficiently supported, likely low. 46 30877 (1981). reconsideration concluded while low side," nonetheless reasonable; September 30, 47 4562, 4563 assessed SWPA. suit, seeking liability, (1982), $954,816 favor, App. Pet. Cert. 19a-21a, III 17 contend violates predicate direction "become Commission," similar quoted 659. according respondents, precludes increases. 18 important note questions contest DOE FPC's Energy. Brief 39. agree properly without involvement, id., 43-45, he "delegate divide amongst subordinate officials agencies," 44. Further, concede read, extent, light Act: they argue providing "with body longer exists. Rather, sole claim statute rendering determination satisfy A increase, argue, can entire completed. 19 turn contention. face, says little appropriate method implementation Act. agencies, mid-1970's, interpreted allow 661-663. uphold interpretation yields up definitive contrary command approach one. Chevron U.S.A. Inc. Natural Resources Defense Council, Inc., 467 837, 842-845, 104 2778, 2781-2783, 81 694 (1984). 20 [Secretary]," requirement "upon" agreed. find, unambiguous meaning wording statute. agency's "confirmation approval," subject examination, bare 21 ambiguity. draw arguing drafters (like Project 1937, based) "protec[t] consumers." 90 Cong.Rec. 9283 (1944) (statement Rep. Rankin). point out pendency pay otherwise, perhaps pay. Yet discuss extensively below, goal embodied existence policy, more, hardly supplies rely Ickes yes-or-no (Bonneville Dam), Oregon Washington: H.R. 7642 Rivers Harbors, 75th 150 (1937), particularly helpful Congress' intent 22 absence clear command, consider choice " 'represents committed care statute.' Chevron, U.S., 845, S.Ct., 2783, quoting Shimer, 367 374, 383, 1554, 1560, 908 (1961). dual obligation protect "at principles." Tex-La Electric Cooperative, 693 392, 399-400 (CA5 1982). also, plain H.R.Conf.Rep. 2051, (1944); 2280, 74th (1936) Act); 2955, (same). 23 Interim appears well suited accommodating goal. protects subjecting initial made effective, disapproved. Government collect costs, wait time-consuming review. helps eliminate possibility delay increases, inflation, will cause constantly playing catchup attempt secure rate. 24 allows meet standards, Congress, just interposed approval" process. process, charges passed consumers, consumers. agencies commonly go prior completion See, e.g., 4(e), 717c(e); 205(e), 824d(e); Communications 204, 204; Interstate Commerce 15(7), 49 10708. generally W. Jones, Cases Materials Regulated Industries 122-126 (2d ed. 1976). plainly necessarily incompatible consumer protection. 25 199 (1962), proposition inadequate remedy Gas, faced private utility put effect, suspension governmental legality argued once allowed until proceedings rate, illegal refund. position, holding solely procedure instead reduction 26 support argument. Where seeks there danger unreviewed Gas. implemented already Secretary. thus concerns led find present. Instead, illustrates repeatedly given precisely able do— orders determinations 27 barred setting absent explicit authorization. cannot create complex structure thin air. provisions general, respects less analogous regulation declining detailed mandatory apparently leave agency substantial discretion how bar taking steps general reasonably proprietary activity Limiting suggest disserve establishing "a convenient practical disposing [federal hydroelectric] projects." 28 Indeed, contexts statutes provide. Trans Alaska Pipeline Cases, 436 631, 98 2053, 56 591 (1978), "an intelligent exercise [the rate] power," 653, 2065, out, hearing, effect. condition action carriers' promise nowhere 'legitimate, reasonable, direct adjunct suspend investigation.' Id., 655, 2067, Chesapeake & Ohio R. 426 500, 514, 96 2318, 2325, (1976). decided quite different today, analogies two schemes loose best. reason, why take narrower powers ICC's enabling statute.5 29 therefore established constitute underlying bottom, seek strike gives much objection simply cut off invalidated another layer disposed accept compelling favor. supplied here. 30 make read literally, nonexistent bars detect absolute bar. 31 based acceptance position desire construe harmony with" noted, "is incorporated terms"; conclusion significant increases; 641-645, 119-121. premise determined second premise, reject third. provision is, terms, becoming parallel language. meant bind itself restrictions going beyond contained believe explicitly. IV 32 conclude nothing Circuit, accordingly, 33 ordered. cited proceeding arose 50 731, codified 832-832l. essentially identical, treated interchangeably. F.P.C., 1465-1470; infra, 667. (1975), citing 1.20 (1975) (superseded 1978); 1912, 1912-1913 (1974). But 795 (1976) (confirming schedule adjudicatory where on-the-record proposing rate). 7151(b) (transferring functions Subchapter Commission). suggestion FERC, rather inherited abandoned unsupported 395 Applications' responsibilities Conservation Renewable refer officers "Assistant Secretary" throughout opinion. FERC's case, delegation certain respects. 48 55664 (1983). propriety 1983, us. 501(a)(1) 7191(a)(1), abrogate "administrative requirements" statutes, requirement" adds case.

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