Document: 436 U.S. 631 98 S.Ct. 2053 56 L.Ed.2d 591 In re TRANS ALASKA PIPELINE RATE CASES. Nos. 77-452, 77-457, 77-551 and 77-602. Argued March 28, 1978. Decided June 6, Syllabus Anticipating completion of the Trans Alaska Pipeline System (TAPS) in mid-1977, seven its eight owners filed tariffs for transportation oil over TAPS with Interstate Commerce Commission, which at that time had jurisdiction pipelines. Four protestants, respondents here, immediately asked ICC to suspend proposed rates, were claimed be prima facie unlawful a number reasons. Rejecting carriers' argument it no authority under § 15(7) Act (Act) (which provides "[w]henever there shall . any schedule stating new individual or joint rate, Commission may operation such schedule") TAPS's initial concluded rates should suspended. It then went on hold carriers could submit interim tariffs, effective one day's notice, would allowed go into effect during suspension period if lower than levels summarily fixed by agree refund amounts collected either initially might subsequently (after full hearing) held unlawful. The petitioned review ICC's order Court Appeals, affirmed all aspects order. Held: 1. Pursuant 15(7), is authorized tariff schedules an interstate carrier subject Part I Act, as did here. As against contention word "new" used was intended refer only increased changed (i. e., replace other previously effect), must given literal interpretation applying services have never before been offered public, thus embracing question these cases. Pp. 642-652. 2. has power ancillary establish, without adjudicatory hearing, maximum allow period. By so establishing h re, not exceed but, contrary, performed intelligent practical exercise accord Congress' goal strike fair balance between needs public regulated carriers. 651-654. 3. ICC, part establish authority, properly exercised condition decision requirement later determined lawful notwithstanding absence express statute refunds. United States v. Chesapeake & Ohio R. Co., 426 500, 96 2318, 49 14. If approximations what are meet needs, provisions necessary "directly related," id., 514, S.Ct., 2325, means discharging mandate protect pending more complete determination reasonableness "legitimate, reasonable, direct adjunct Commission's explicit statutory investigation," ibid., they exercising power, pursue "a measured course" "offe[r] alternative tailored far precisely particular circumstances" Ibid. 654-657. 557 F.2d 775, affirmed. Andrew J. Kilcarr Richard Flynn, Washington, D. C., petitioners. Frank H. Easterbrook, Avrum M. Gross, Atty. Gen., Juneau, Alaska, respondents. Mr. Justice BRENNAN delivered opinion Court. 1 primary presented cases whether added, 36 Stat. 552, amended, U.S.C. 15(7),1 24 379, §§ 1-27 (1970 ed. Supp. V). addition, we decide whether, authorized, additional fix will require filing containing further nonsuspension, ultimately found We associated regulations—including provisions—as done 2 * 1968, massive reservoirs discovered Prudhoe Bay Alaskan Arctic. Two years plans crystallized build pipeline from all-weather port Valdez Alaska's Pacific coast. After protracted environmental litigation ended special Congress,2 construction began 1974. May Jun 1977, TAPS,3 anticipating Commission4 setting out rules governing TAPS. These met formal protests5 State Alaska,6 Arctic Slope Regional Corporation,7 Department Justice,8 Bureau Investigations Enforcement.9 3 Acting pursuant Commission10 protests lodged aga nst gave "reason believe just reasonable." System, 355 I.C.C. 80, 81 (1977) (TAPS ). support this conclusion, cited protestants' arguments excessive returns capital11 cost data provided overstated.12 Dismissing suspended months law, see I.C.C., 81-82, citing showing "probable unlawfulness," 81, concern "maintenance excessively high act deterrent obstacle use nonaffiliated producers, also delay interests obtaining revenues depend upon well-head price oil." Id., 82. 4 On hand, interest close seven-month 83. Accordingly, "accept[ing] basic supplied carriers" true, applied stated traditional rate-of-return calculation13 compute approximated investigation likely reveal rates14 specified higher those estimated. See 83-86. However, since estimated still "exceed reasonable levels," provide refunds excess rates. 86.15 5 owners, petitioners here,16 petition Appeals Fifth Circuit. That court determined: (1) well changes tariffs; (2) set out, period; (3) whose prepared make tariffs—which Mobil Co. States, 775 (1977). 6 Petitioners sought applications stay order, relief having denied October 20, granted stay, 434 913, 383, 54 271, issued supplemental November 14, 1977. 949, 475, 309. Thereafter certiorari consider three issues decided Appeals. 964, 501, 449. affirm.17 II 7 Sept. 18, 1940, ch. 722, Tit. I, 1, 899, note preceding Congress declared National Transportation Policy "to encourage establishment maintenance charges services." V), applies common rail pipeline, vehicle carried effect. Under passed 1887, however, role "reasonable charges" circumscribed. Although "[a]ll made service rendered passengers property just; every unjust unreasonable charge prohibited unlawful," earlier charges, but determine context granting reparations injured shippers. Cincinnati, N. O. T. P. 167 479, 17 896, 42 L.Ed. 243 (1897); I. Sharfman, 25-27 (1931) (hereinafter Sharfman). 8 1906, Hepburn 34 584, which, inter alia, augmented condemn existing adding observed future. 15. issue affecting rate until become effective. This feature recognized major defect. Sharfman 51 n. 50. meant lay remedy satisfactory solution: 9 "In many damage suffered through loss competitive advantage exceeds difference actually charged Commission; most instances burden borne prior producer shifted ultimate consumer, whom redress whatever available carrier." 51. 10 H.R.Rep.No.923, 61st Cong., 2d Sess., (1910), quoting President Taft's message Act;18 S.Rep.No.355, (1910);19 513, 10, 14 (1976) (Chessie ); Dixon, Mann-Elkins Q.J.Econ. 593, 602-603 (1910) Dixon). Annual Reports tell us that, early 1907, private litigants able convince some federal courts enjoin advances after their dates required Act. Arrow Southern 372 658, 663-664, 83 984, 986-987, 986 52 (1963); 50 49. Thus, fail equity spawned led discrimination rates—much like Act—in situation shippers successful paying while who unsucces ful, wherewithal post injunction bond, charges. Arrow, supra, 986-987; 49; Dixon 603. 11 To "provid[e] 'means checking threshold adjustments prove discriminatory, safeguarding community irreparable losses recognizing fully essential task maintain proper relationships,' " Chessie, U.S., 59, 1910, 539. Section 12 amended 15 "any fare, charge" months. conferred "particularly potent tool," giving 'tremendous power.' 45 Cong.Rec. 3471 statement Sen. Elkins speaking behalf majority report). Acts, works give ratemaking charter. indicated above, sets standard meet, 6—which prohibits covered engaging unless fares, published allows notice advance changes, 6(1), 6(3), 6(7)—insures both sufficient can operate disapproved schedules. III 13 With background mind, turn states charge, ." (Emphasis added.) hard imagine TAPS, offered. And, little room argue apply cases, although recognize plain meaning. F.2d, 781. Nonetheless, does really mean "new," refers i.e., understand argument, draws sources. First, said 1910 directing attention solely problem railroad and, therefore, limited plication. Second, requires date 6(3). Since view work tandem conclude include Finally, point language added 418 1920, 41 484-487, say authoritatively glosses limiting situation. find unpersuasive. A. 16 Court, interpreting words statute, "some 'scope adopting restricted rather usual meaning where acceptance lead absurd results thwart obvious purpose statute' [b]ut otherwise 'where consequences follow appears consonant purposes .' Commissioner Brown, 380 563, 571, 85 1162, 1166, 75 (1965) (citations omitted). test, restriction "literal meaning" warranted legislative history petitioners' claim situations sense reasonable; impose chooses.20 Nor pointed mechanism tend insufficient check. Moreover, particularly ineffective ship almost exclusively parents cosubsidiaries owners.21 indeterminate, possibly large extent, offset profits creating wash transaction standpoint parent companies. Indeed, tellin' tg shipper protested Instead, predict experience 640-641, perceives objected them. nn. 6-8, supra. Therefore, rates—both generally cases—like increases certainly along consumer." 18 follows cannot foreclose respect again reach "diverse conclusions," jeopardizing "the regulatory uniformity," "causing 'discrimination hardship general public.' 664, 987, Report (1907).22 19 reaching 'absurd resul[t]' 'thwart statute,' reading curb mischief flowing unchecked way identical concededly addressed. Given equivalence harms resulting unequivocal statements limitation scope power. Petitioners, offer isolated remarks floor debates favor position.23 show area congressional railroads pre-existing There nothing limit situation, indeed, quite clearly Representative Mann, least, thought suspended.24 interpretation, embraces litigation.25 B 20 do think much fact Congress, sometimes "changed" 21 While true 6(3) "[n]o change except thirty days' public" (emphasis added), read section restrict do. Central premise exclusive procedure Commission. But so. 22 simply describe followed section, terms, definition filed. conclusion govern begins analysis, 6(1) Act—which "[e]very file [over routes,]" added)—plainly therefore arises how 23 gives answer question; silent issue. regulation 1906 clarify obligations recently enacted Act.26 year, Tariff Circular No. 2-A, provided: "NEW ROADS.—On lines road, including branches extensions roads, established first instance, points line, posting same Commission." 25 paragraph "Changes Rates" 30 suggests aware 30-day indeed itself, inapplicable "new roads." rule announced 2-A became Rule 44 14-A 1907 57 15-A 1908, numerical designation retained day. C.F.R. 1300.57 (1977).27 26 when passed, practice clear. Initial (later notice) delayed dates, possible Consequently, basis concluding procedural avenue did. 27 Similarly, sentence 15(7)—"if proceeding [within period], end period"—nothing "change" amending itself increases, suggest increases.28 28 indicated, spring grown books. 1887 drafted authority. traces Acts—the 1920. Since, grew Topsy Athena, inappropriate insist each phrase fit meticulously other. construed verbal accretions years. construction, commend narrow "new." opposite construction—that "change"—is justified Acts. enact comprehensive schemes Parts II,29 III,30 IV31 cover (respectively) motor carriers, car iers water, freight forwarders, unequivocally capable being yet references appear place I.32 C 29 For reasons public. IV Our our inquiry, here exceeded tariffs. Pointing calculation period, state hearing 15(1).33 disagree. 31 reason prevent harm consideration lawfulness rate. II, foundation probably unjust. See, e. g., 81-82. determination, obviously form tentative about location line unjust, unreasonable. writing suspending tariff. fall side drawn, sort 81-83. 32 apparently disagree because falls wrong reasonableness, stating, dividing lies. Such statement, say, ratemaking. untenable: No principle la engage pointless charade desiring rights resubmit finally goes below undisclosed take administrative process, all, modeled "The Price Right." What condemnable, thoroughly goal, 664-666, 987-988; SCRAP, 412 669, 697, 93 2405, 2421, 37 254 (1973), derelict duty insisted once Cf. supra ; 43 1651(a) ed., V) (congressional policy favors "[t]he development delivery North domestic markets"). V 33 contend them obligation account They expressly category circumstances, namely, "increased property," pattern, suggest, indicates considered rejected broader scheme, thereby curtailing have. response, already Chessie powers "ancillary" grant occasion range be, indicate touchstone "direc[t] relat[ionship]" asserted "mandate assess legality." 2325. Applying relationship insisting proceeds pay deferred maintenance. proceeds, put purposes. noted "[d]elay aggravated poor railroads." approved essentially 35 very similar. Even cursory glance pleadings shows extended proceedings resolve apparent discharge [TAPS] rates," considering beginning operations, gross proceeding, accepted carrier-supplied incl ded base contrary. 83; 636, 12. conditions course adopted confer enter plainly contrary result. turn, rely. latter 484, 487. rearranged paragraphs numerous modifications text section. Among things, reduced created 120 days. According Clark, alleviate complaints 10-month too long deprived needed revenue reasonable. Hearings H.R. 4378 House Committee Foreign Commerce, 66th 1st 30-31 (1919). shippers, reduction counterbalanced provision authorizing keep 120-day suspension. ibid. summarized Conference described bill 418: 38 "[The that] record commission high, affected." H.R.Conf.Rep.No.650, 66 (1920). 39 passage, declares "all termination placed emphasis "increased" powers. bill, H.R.Rep.No.456, 20-21 (1919), distinguish "decreased" 1920 conferring minimum 19, need create From sketchy history, seems less cumbersome whenever harmed due shortened 665-666, 987-988. precludes moreover, actions completely consistent VI 40 judgment respects Affirmed. POWELL took "Whenever concerning [or] thereon delivering affected suspension, defer , longer beyond Trans-Alaska Authorization 87 1651 et seq. Each companies holds undivided "right utilize share capacity independent Joint Brief 5. owner follows: Sohio Pipe Line 33.34% ARCO 21.00 Exxon 20.00 BP Pipelines, Inc. 15.84 5.00 Phillips Corp. 1.66 Union Amerada Hess 1.50 91-93 District Columbia Circuit, Oil pipelines 1(1)(b). date, commerce transferred Federal Energy Regulatory (FERC). Organization 91 565, 7101 (1976 I); Exec. Order 12009, Fed.Reg. 46267 Further FERC. CFR 1100.42 (1976). owns one-eighth royalty oil, calculated equal 12.5% "wellhead value" oil. parties (although recent reports falling prices west coast cast doubt this) market fixed. wellhead value approximately subtracting costs price. App. 554a. reason, claims lose cents royalties dollar level. Respondent 7. Corporation, Native Claims Settlement 688, 1601-1627 represents Inupiat Eskimos, paid 2% value, crude up total $500 million surrender aboriginal land area. Corporation collects inversely proportional great immediate royalties, harmed. argued unreasonably accordingly "discourage exploration fields reducing [oil]." 95a. discouragement "inconsistent national energy policy." "prima unreasonable," 143a, investigation. Rather referring protest staff board appellate division Commissioners, routinely 1100.200 (1976), heard oral data, aggregate debt-equity ratio financing 85%-15%. 23a-24a, 159a; 91. calculating deducted expense computation net income return element 7% investment, i. debt equity. 177-178. protestants characterized "double-dipping." 13. defended consent decree entered Atlantic Refining C.A. 14060 (D.C., Dec. 23, 1941). 349a-355a; 178. originally $1 billion. 10a. $9 102a, 117a. Protestants billion represented waste mismanagement not, included base. E. 10a-11a. Usually, uses 8% valuation recognition extreme risk venture, 10% 85. Proposed Interim Carrier Rate Reduction $6.44 $4.85 $1.59 6.35 4.68 1.67 6.31 4.84 1.47 6.27 5.10 1.17 6.22 4.83 1.39 6.16 4.70 1.46 6.09 4.89 1.20 6.04 4.91 1.13 87, 94. one-day's instituted 15(1). 87-88. intervenors Court's 21(4). (1963), divest orders modified position now concedes extent ensure overstep bounds agree. SCRAP stand two propositions: first, 990; 691, 2418; second, "an appraisal 670-671, 991; 692, 2418. reversal judicial allowing effect, injunction, jeopardizes uniformity" 987; infra, 641, reviewing court's void regions country. orders, 2341(3)(A), 2342(5) Pub.L.No.93-584, 3-4, 88 1917; 2349(a). reaffirm previous holding independently appraise involved inquiring overstepped Co gress cut off Dunlop Bachowski, 421 560, 567, 95 1851, 1857, 377 (1975); Abbott Laboratories Gardner, 387 136, 140-141, 1507, 1510-1512, 681 (1967); Leedom Kyne, 358 184, 190, 79 180, 210 (1958). 'It doubted [the reparations] is. Experience shown many, perhaps most, resort recover pay, simple goods enhanced thereof customers, bill.' "[I]n restitution seldom awarded; recoups himself amount commodity." 17-18: "[ICC] Hardin: $35 barrel, that? "[Exxon counsel]: you right." pointing agreement tender latter's ownership, computes Interest Sohio/BP 49.18% 53.155% 20.274 2.094 2.044 .538 0.000 Ten Others 0.00 1.619 Respondents 7-8, 4. computed different, substantially 6. past, injunctions brought diversity citizenship law federal-question theory Sherman violated increase alternatively implied right action Northern Pac. Coast Lumber Mfrs., 165 F. (C.A.9 1908); Jewett Bros. Chicago, St. 156 160 (CC S.D.1907). consolidating single appeals, 17, apposite injunctive district conflicting views propriety relief, conflict discriminations following Mann: "[W]hen company files proposing presumption existed, time—but short, existence—is remain force opportunity subject. shipper." 4713 (1910). Just this, Mann stated: "We taking rate; classification practice, classification, regulation, 4711 added). defending felt discuss puts "upon article." 4711-4712. th old Mann's defense superfluous. rely Senate 29. remarks, amendment defeated, 6915 introduced Senator Cummins prevented "which rate," 6409, becoming it. relevant passed. using facilities. This, argue, constitute confiscation Due Process Clause. indicate, 33, misguided pretermit preferred refrain operations confiscatory "contemporaneous Act] men responsibility [tariff] machinery motion," Norwegian Nitrogen 288 294, 315, 53 350, 358, 77 796 (1933), implemented presumptively correct. ibid.; Udall Tallman, 16, 792, 801, 616 (1965). Circulars covering promulgated 1928. year superseded circulars, version "[r]ates from, to, via, reached via newly laid manner constructed 57(e). codified 1300.57(e) "[I]f case recordkeeping requirements carrier]." 487 301-327 901-923 1001-1022. reproduced haec verba 316(g) ("Whenever fair, ."); 907 (g) 1006(e) ."). enacted, "shall bona fide takes effect." Motor 1935, 216(g), 559, 560 state: "[T]his July 31, 1938, [on 1935]." 29, 811, 1240 Substantially provisos—each exempting certain—can 907(g) 1006(e). provisos significant demonstrate understood rate" is, so, grandfather proviso entirely unnecessary. grandfathered within inference strong subsequent (and are) confirmed 316(g). contain cutoff proviso. amendment. explained "Sectio[n 16] propose[s] amend sectio[n] [316(g)] permit future filings power." H.R.Rep.No.2714, 75th 3d (1938). clause confirm application doubtless attempting recreate scheme II-IV occasions. H.R.Rep.No.1217, 76th 23-24 (1939); H.R.Rep.No.2066, 77th (1942). pari materia 316(g), 907(g), 1006(e), sections weight construing former. Freeman, How. 556, 564-565, 724 (1845); Stewart, 311 60, 64-65, 61 102, 105-106, (1940); Erlenbaugh Unit d 409 239, 243-244, 477, 480-481, 446 (1972). defeats narrows Counterparts 317(c) 1005(d), states: "No 1005(d) respectively, clear contains 649, restrictive lawful, "finding preferable commence original rates." 36. argument. authorizes time. lapse refuse tendered service. AT&T FCC, 865, 870-881 (CA2 1973). making decisions, blink reality avoid certain accrue commencement postponed altogether.

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