Opinion ID: 394102
Heading Depth: 2
Heading Rank: 2

Heading: Merits of Mississippi Valley's Mobile-Sierra Claim.

Text: 39 Mississippi Valley's Mobile-Sierra claim is that Article II of Stipulation I prohibited Southern from filing unilaterally any change in its historical rate zones prior to August 1, 1980, except through the Docket No. RP78-36 proceeding. 20 The pertinent part of Article II reads: 40 The parties submit that all issues and aspects of the cost classification, cost allocation (including zoning) and rate design on the Southern System must be resolved in the public hearings scheduled to commence on November 28, 1978, in Phase I of this (Docket No. RP78-36) proceeding. 41 In accepting the October 31st filing, the Commission declared that Stipulation I: 42 (P)rovides only for hearing and resolution of the zoning issues, but does not restrict or preclude Southern from filing rates which reflect its position on such issues, and from collecting such rates, subject to refund, pending resolution of such issues. 43 (R. 1314). We believe the Commission correctly interpreted Stipulation I. 44 The language of the stipulation does not expressly bar rate filings other than that in Docket No. RP78-36. Indeed, Article IV(b) of Stipulation I anticipates the possibility that Southern would make additional rate filings during the locked-in period to be covered by the Stipulation I. 21 Because the parties anticipated future filings, had they meant to preclude Southern from a particular type of filing, i. e., changes in the zoning allocation, Stipulation I should have stated as much in unambiguous terms. This was the issue on which they still disagreed and was so important that had the parties intended to preclude filings reflecting a change in rate design, we think that they would have included such provision in the stipulation. See Louisiana Power & Light Co. v. FERC, 587 F.2d 671, 675 (5th Cir. 1979); Public Service Co. of New Mexico v. FPC, 557 F.2d 227 (10th Cir. 1977). 45 Mississippi Valley perceives in Article VI.D. of Stipulation I an exchange whereby Mississippi Valley gave certain assurances to Southern in exchange for Southern's agreement not to file for changes in its transportation cost allocation. If Southern could not change its transportation cost allocation during the pendency of Docket No. RP78-36, then a Commission decision that zones should be abolished possibly would mean that Southern would have to refund excess payments to some zones, but would be unable to collect undercollections from other zones. In such event, Mississippi Valley would have been a major customer in the undercharged zone. Mississippi Valley interprets this Article VI.D. as constituting a promise by Mississippi Valley to reimburse Southern for any such undercollections, should the Commission ultimately abolish zones in Docket No. RP78-36. Article VI.D. reads: 46 If Southern is required to make interim and/or final refunds prior to the entry of a final and nonappealable order on the Phase I issues in Article II hereof, Southern shall be entitled (1) to offset any excess interim refunds made to any customer against the final refunds if such final refunds are made pursuant to a final non-appealable order and (2) to collect a rate surcharge to recoup any excess refunds not offset in (1) which surcharge shall be collected in a manner agreed upon by the parties to this proceeding or as determined by the Commission. 47 This provision, though, provides not only for surcharge, but also for offset. It is clearly related to Article VI.A.-C. which provided for an interim refund during the locked-in period if certain orders were issued by the Commission. It also provided for final refunds at the end of the locked-in period if certain orders had issued. Article VI.D. is designed to correlate any refund given before final approval of rate design with the ultimate refund or revenues due after final Commission approval of rate design. Moreover, Article VI.D. allows Southern to surcharge and offset only to obtain any excess refund made before final determination of rate design. By its own language, it does not protect Southern from undercollection of revenues in the event the Commission were to order the abolition of zones at the conclusion of Docket No. RP78-36. Thus, Article VI.D. cannot be construed as Mississippi Valley's promise to Southern to protect it from undercollections in exchange for its promise not to file changes in transportation cost allocation during the locked-in period. 48 Finally, although we believe the Stipulation I by its language clearly leaves open the right to Southern to file for rate design change, subject only to the condition that the resolution of the design problem in Docket No. RP78-36 would control that issue in subsequent filings, we are impressed by the fact that the October 31st filing occurred three days before Stipulation I. The absence of any reference in Stipulation I to the October 31st filing is telling. 22 The parties undoubtedly knew of the October 31st filing, but imposed no requirement that it be withdrawn. Had Mississippi Valley wished to terminate that filing, it should have done so in clear, unambiguous language in Stipulation I. 49