Opinion ID: 721438
Heading Depth: 4
Heading Rank: 4

Heading: Small Distributors' and Municipalities' claim84

Text: 216 The Small Distributors and Municipalities argue that the effect of SFV rate design is to increase gas prices at the wellhead. They further claim that FERC failed to demonstrate that such an increase is necessary to assure adequate supply. FERC points out that this argument is not properly before the court because petitioners did not raise it in the administrative proceedings in their request for rehearing of Order No. 636. As we noted earlier, see supra Part IV.A.2, 15 U.S.C. § 717r(b) (NGA § 19(b)) clearly states that [n]o objection to the order of the Commission shall be considered by the court unless such objection shall have been urged before the Commission in the application for rehearing unless there is reasonable ground for failure so to do. See also ASARCO, 777 F.2d at 773-75 (elaborating on the significance of the § 717r(b) requirement that the objection be raised before FERC). Finding no mention of this price increase objection in the petitioner's rehearing request, and hearing no explanation by the petitioner of a reasonable ground for this omission, we conclude that the price increase objection is not properly before the court and decline to reach it.