Source: http://openjurist.org/423/us/326
Timestamp: 2015-10-10 09:16:07
Document Index: 459121147

Matched Legal Cases: ['§ 19', '§ 717', '§ 4', '§ 717', '§ 4', '§ 717', '§ 7', '§ 717']

423 US 326 Federal Power Commission v. 7] Transcontinental Gas Pipe Line Corporation | OpenJurist
423 U.S. 326 - Federal Power Commission v. 7] Transcontinental Gas Pipe Line Corporation Homethe United States Reports423 U.S.
423 US 326 Federal Power Commission v. 7] Transcontinental Gas Pipe Line Corporation 423 U.S. 326
96 S.Ct. 579
46 L.Ed.2d 533
FEDERAL POWER COMMISSIONv.7[[TIQ!]] TRANSCONTINENTAL GAS PIPE LINE CORPORATION.
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The Federal Power Commission seeks certiorari from an interlocutory order of the Court of Appeals for the District of Columbia Circuit, which defers that court's review of the Commission order at issue pending completion of a certain evidentiary investigation by the Commission directed by the court. The Commission challenges the authority of the Court of Appeals to order the investigation under the statutory review provision involved, § 19(b) of the Natural Gas Act, 52 Stat. 831, as amended, 15 U.S.C. § 717r(b), and, in any event, contends that the Court of Appeals abused its discretion in the circumstances of this case.
The underlying case involves plans for coping with a natural gas shortage being experienced by respondent Transcontinental Gas Pipe Line Corp. (Transco). The shortage is said to require curtailment of contracted natural gas deliveries by Transco to its customers during periods of high demand. The curtailment plans concern methods of allocating the shortfall among the various customers. The curtailment plan immediately at issue was submitted by Transco to cover the period of November 1974 to November 1975. This interim plan was filed in September 1974, and was the result of a settlement agreement negotiated between Transco and its various customers. The agreement provided for a plan of allocation of natural gas supplies among Transco's customers during periods of shortage, and a monetary compensation scheme under which customers receiving more gas than the systemwide average would compensate customers who received less natural gas than the average. The Commission rejected the proposed plan, determining that the compensation scheme would be violative of the Natural Gas Act. The Commission held that the compensation scheme would violate (1) § 4(a) of the Act, 15 U.S.C. § 717c(a), which requires a pipeline's jurisdictional rate to be based on the pipeline's cost of service plus a reasonable rate of return; (2) § 4(b) of the Act, 15 U.S.C. § 717c(b), which prohibits undue discrimination in rates among similarly situated customers; and (3) § 7(c) of the Act, 15 U.S.C. § 717f(c), which requires persons engaging in resales of natural gas in interstate commerce first to obtain a certificate of public convenience and necessity.
Thereafter, Transco and several of the parties to the settlement agreement sought review of the Commission's determination.1 Following oral argument on the petition for review, the Court of Appeals, "desiring to be more fully informed about the 'crisis' on the Transco system before reviewing questions pertaining to its solution," entered an order sua sponte directing the parties to submit certain information concerning Transco's natural gas reserves. After receiving responses to this order, and noting the refusal of the Commission to certify the accuracy of the data supplied by Transco regarding its reserves of natural gas, the court directed the parties to show cause why it should not order the Commission to conduct an immediate investigation of Transco's claim of reduced reserves. Thereafter, the Court of Appeals, observing that evidence of "actual shortage both underlies the concept of curtailment and justifies its application," issued the proposed order. That order directed the Commission to complete and report to the court an investigation "of Transco's claims of reduced reserves by immediate subpoena of Transco's books and records pertaining to all gas supplies in which it has any legal interest . . . and by field investigation (which) has determined the extent of the reduced reserves and the bona fides of Transco and its suppliers in meeting their past and futu