Opinion ID: 187200
Heading Depth: 2
Heading Rank: 4

Heading: NGA Section 10

Text: Finally, FERC argues that the Conditions Order is a legitimate exercise of its authority under section 10 of the NGA, 15 U.S.C. § 717i. Under section 10, FERC may require a regulated natural gas company to supply informational reports that FERC deems necessary to carry out its regulatory duties. [18] But the Conditions Order makes no mention of section 10; instead, it declares that FERC is acting under its section 5 authority. See Conditions Order ¶ 12 (We find, therefore, that under section 5 of the NGA, [the 2005 Settlement] is unjust and unreasonable. ...). Similarly, the Rehearing Order repeatedly affirms that FERC is acting under section 5. See, e.g., Reh'g Order ¶ 6 (The Commission found that under section 5 of the NGA, [the 2005 Settlement] was unjust and unreasonable....), ¶ 21 (The Commission made the requisite section 5 findings....). The first and only mention of section 10 is FERC's observationunsupported by any explanation or analysisat the close of the Rehearing Order. See id. ¶ 21 (The Commission ... is granted express authority under section 10 of the NGA to require reports.). This does not suffice. See Mo. Pub. Serv. Comm'n v. FERC, 234 F.3d 36, 41 (D.C.Cir.2000) (A passing reference... is not sufficient to satisfy the Commission's obligation to carry out reasoned and principled decisionmaking. We have repeatedly required the Commission to fully articulate the basis for its decision. (quotations omitted)); Great Lakes Gas Transmission Ltd. P'ship v. FERC, 984 F.2d 426, 432 (D.C.Cir.1993) (By requiring the Commission to explain its decisions fully and rationally, we can be confident that missing facts, gross flaws in agency reasoning, and statutorily irrelevant or prohibited policy judgments will come to a reviewing court's attention. (quotation omitted)); see also SEC v. Chenery Corp., 318 U.S. 80, 95, 63 S.Ct. 454, 87 L.Ed. 626 (1942) ([A]n administrative order cannot be upheld unless the grounds upon which the agency acted in exercising its powers were those upon which its action can be sustained.). For the foregoing reasons, we grant Dominion's petition and vacate FERC's Conditions Order, 113 F.E.R.C. ¶ 61,302 (Dec. 21, 2005). So ordered.