Document: 393 U.S. 71 89 S.Ct. 55 21 L.Ed.2d FEDERAL POWER COMMISSIONv.UNITED GAS PIPE LINE COMPANY. MEMPHIS LIGHT, GAS, AND WATER DIVISION v. UNITED Nos. 247 and 248. Oct. 21, 1968. Solicitor General Griswold, Harris Weinstein, Richard A. Solomon Peter H. Schiff, for petitioner the Federal Power Commission. Reuben Goldberg George E. Morrow, Memphis Light, Gas & Water Division. David T. Searls Vernon W. Woods, respondents. PER CURIAM. 1 When these cases were here first time, we sustained authority of Commission to determine tax component United's cost service in accordance with formula developed by it Cities Service Co., 30 F.P.C. 158 (1963), but remanded respect whether applying was significant that United apparently had both jurisdictional nonjurisdictional activities income. FPC Pipe Line 386 U.S., 237, 87 1003, 18 (1967). Over objections Commission, Court Appeals held issue been sufficiently raised its petition rehearing before § 19 Natural Act, 52 Stat. 831, as amended, 15 U.S.C. 717r, required consolidated return savings coming be allocated 2 The petitions certiorari are granted judgment is reversed.** Although acquiesce Appeals' construction filed on remand not proper posture final determination should have further consideration. It true opinion remarked 'United largely a regulated company, shall designate such purpose computations.' 31 1180, 1190 (1964). But made no effort justify this characterization terms findings, fundamentals formula, or applicable law. This may because adversary proceedings primarily concerned validity itself never focused precisely question intra-company revenue allocation. Whatever reason, there 'no indication basis which exercised expert discretion,' articulation 'any rational connection between facts found choice made.' Burlington Truck Lines, Inc. States, 371 156, 167, 168, 83 239, 245, 246, 9 207 (1962). On Commission's order vulnerable Appeals. 3 does follow Appeals, face insistence decision wholly consistent determined income 'income from unregulated large absorb all net losses excess remains reduce taxable United.' Co. FPC, 388 F.2d 385, 391—392 (C.A.5th Cir. 1968) (footnote omitted.) These questions adequate attention instance being subjected judicial review. Before courts can properly review agency action, must disclose 'give clear has discretion Congress empowered it,' Phelps Dodge Corp. NLRB, 313 177, 197, 61 845, 854, 85 L.Ed. 1271 (1941); otherwise propelled 'into domain set aside exclusively administrative agency.' SEC Chenery Corp., 332 194, 196, 67 1575, 1577, 91 1995 (1947). reversed instructions proceedings. 4 so ordered. 5 Reversed remanded. 6 Mr. Justice FORTAS MARSHALL took part consideration cases. ** motion leave use record prior Court, 127 128, October Term, 1966, granted.

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