Document: 498 U.S. 73 111 S.Ct. 415 112 L.Ed.2d 374 ARCADIA, OHIO, et al., Petitionersv.OHIO POWER COMPANY al. No. 89-1283. Argued Oct. 1, 1990. Decided Nov. 27, Rehearing Denied Jan. 22, 1991. See 1075, 804. Syllabus Respondent Ohio Power Co. is subject to the overlapping regulatory jurisdiction of Securities and Exchange Commission (SEC) under Public Utility Holding Company Act (PUHCA) Federal Energy Regulatory (FERC) (FPA). In a series orders authorizing establish capitalize an affiliate secure develop reliable source coal, SEC specified that price paid for such coal could be no greater than (and, in one order, equal to) affiliate's actual costs. Subsequently, FERC declared charges complying with this specification unreasonable thus unrecoverable Power's rates its wholesale customers, including petitioner municipalities, rejecting argument SEC, by above-mentioned orders, had "approved" charges, § 318 FPA ousts jurisdiction. The Court Appeals reversed, holding FERC's disallowance precluded 318, which captioned "Conflict jurisdiction," provides "[i]f, respect issue, sale, or guaranty security, assumption obligation liability method keeping accounts, filing reports, acquisition disposition any capital assets, facilities, other matter, person both requirement [PUHCA] [the FPA], . shall apply ., not [FPA] same matter ." (Emphasis added.) Held: 1. Section has application case. phrase "or matter" does not, as lower court assumed, parallel listed subjects "with [which]" duplicative agency requirements will trigger pre-emption rule. Rather, it part reads "the matter." Besides being more faithful precise words text, reading allows take on shape gives meaning what otherwise seems random listing specific matters (with "any tagged at end). section addresses conflicts within four areas plainly authority granted particular sets PUHCA sections. This confirmed expert commentary practice predecessor, have never decided issue except connection promulgated enumerated categories. Thus, applies only if "same exist those specifically enumerated, some different, general "other matter," believed. Even assuming rate order affecting sale electric power qualifies still different from affiliate, was orders. Pp. 77-85. 2. expresses view on, but leaves resolve, arguments decision violates own regulation providing fuel purchased deemed reasonable where body, FERC-prescribed "just reasonable" because "traps" costs implicitly approved. P. 85. 279 U.S.App.D.C. 327, 880 F.2d 1400 (1989), reversed remanded. SCALIA, J., delivered opinion Court, all Members joined, SOUTER, who took consideration STEVENS, filed concurring opinion, MARSHALL, post, p. ----. Carter G. Phillips, Washington, D.C., petitioners. Lawrence Wallace, federal respondent support petitioners, special leave Court. Edward Berlin, private respondents. Justice SCALIA 1 case concerns interpretation Act, added, 49 Stat. 863, 16 U.S.C. 825q, entitled governs certain responsibilities companies 1935, 803. 2 * transmit distribute FERC, successor (FPC). Title I, known (PUHCA), 803, over transactions among registered public utility their subsidiaries affiliates. II, (FPA), 838, transmission interstate commerce. FERC-regulated are affiliates therefore well. Company, American Electric system (AEP), company; petitioners 15 small villages cities AEP's customers. 3 dispute begins issued 1970's, Southern Coal (SOCCO), whole AEP system. first 1971, approved purchase SOCCO's stock, course outlining conditions approval, stated would "based on" Co., Release (HCAR) 17383 (Dec. 2, 1971). 1978, authorized further investment Power, time indicated "will exceed cost thereof seller." HCAR 20515 (Apr. 24, 1978), 14 S.E.C. Docket 928, 929. 1979, another financing approval noted pay SOCCO less after-tax exceeded level. 21008 17, 1979). final 1980, approving financing, "[t]he SOC[C]O's sold 21537 25, 1980). 4 1982, increases service. initiated proceeding §§ 205 206 FPA, 824d, 824e, quickly settled issues save reasonableness Pursuant disallowed portion did satisfy "comparable market" test. Under test, utilities may recover they incurred comparable supply contract nonaffiliated supplier. case, found approximately 50% market 94% 1981, between 24% 33% during period 1982 through 1986. Accordingly, ordered calculated customers refund prior overcharges. rejected SOCCO, regulate "subject declaring rates. 39 ¶ 61,098 (1987). 5 United States District Columbia Circuit 318. v. (1989). We certiorari. 494 1055, 110 1522, 108 762 (1990). II 6 As Appeals, argued here, two questions were presented case: (1) whether bars regulated actually imposes conflicting requirement; (2) conflict prerequisite, exists here. our view, however, there question antecedent these ultimately dispositive present dispute: before us impose scope believe do not. follows: 7 8 "If, 1935 rule, regulation, thereunder chapter thereunder, person, chapter, unless exempted person." 9 Crucial outcome lengthy conditional clause section, setting forth list More specifically, key we italicized above passage. appears assumed parallels phrases various objects prepositional to." think reasonably bears interpretation. 10 To begin with, renders preceding enumeration entirely superfluous--in effect adding detailed anything else." Because categories so disparate, canon ejusdem generis cannot invoked prevent swallowing precedes it, leaving statute might well read matter. Such should adopted language unavoidable. Here, text compel result positively militates against it. 11 lists five separate requirements. Bracketed numbers inserted into appear [1] [2] [3] [4] [5] 12 reading, creates problems enumeration: First, "or" introduces fourth category ("If, [1], [2], [3], [4], [5]"), second, produces peculiar omission last item ("the facilities"). casual conversation, perhaps, absentminded duplication possible, Congress presumed draft laws way. attribution imprecision readily avoided placing clause, embrace "[4] It inelegant, refer [a] inelegance must preferred redundancy omission, section's careful superfluous. 13 Moreover, most importantly, when fashion takes So interpreted, (as caption promises) jurisdiction" PUHCA, FPC (FERC), FPA. category, security," refers 204 824c, requires 79f, cases similar SEC; accounts," 301, 825, authorizes prescribe accounts records, 15, 79o, similarly third, reports," 304, 825c, require "periodic 14, 79n, empowers fourth, 203, 824b, purchases securities utilities, sales facilities worth $50,000, 9, 79i, acquisitions "securities assets interests." track precisely sections, sections making up each themselves parallel, alternative formulation bridge gap expected. Our longtime understanding practice. An upon topic jurisdiction, written about years after passage implicated identified. Welch, Functions Relation Commission, Geo.Wash.L.Rev. 81, 88 (1945). And far been able determine, 50 administering FPC, sections.1 Never used provision, policing entire border agencies.2 necessarily true precedence referred jurisdictional basis action—as course, But explicated above, matter"—such relied upon, term contracts associated companies," U.S.App.D.C., 333, F.2d, 1406. context conceivablypertinent contained category. prevail subjected fit quoted description, qualify; impossible identify imposed demands) One say, suppose, disposition" power—though violence interpretive rule say end includes securities, see, e.g., Harrison PPG Industries, Inc., 446 578, 588, 100 1889, 1895, 64 525 (1980); id., 601, S.Ct., 1902 (REHNQUIST, dissenting); Third National Bank in- Nash ville Impac Limited, 432 312, 322, 97 2307, 2313, 53 368 (1977). even accepts qualifying (and requires, as) SOCCO. combination bring play.3 III conclusion review order. Remaining resolved ground Judge Mikva's concurrence 337, 1410—namely, "is includable" 18 CFR 35.14(a)(7) Also available, unresolved Government itself approved—disregarding governmental assurance, possibly implicit approvals, permitted recoup acquiring operating Cf. Nantahala & Light Thornburg, 476 953, 106 2349, 90 943 (1986). express questions, them Appeals. 17 judgment remanded proceedings consistent opinion. ordered. 19 SOUTER 20 whom MARSHALL joins, concurring. 21 While I join Court's am persuaded correct, add additional explanation my vote neither parties, interested agencies, nor considered construction adopts today.1 22 broadly give priority whenever agencies conflict, come conclusion. SEC's creation capitalization pass production affiliates.2 At most, ceiling requiring remains below relevant costs.3 Consequently, comply agencies. 23 There risk limit pays supplier—SOCCO. hand, limits along agencies' financial relationships parties—its supplier also concern aspects costs—the amount how much can directly 24 Finally, significant Appeals' create scheme intended. enacted abuses Gulf Utilities 411 747, 758, 93 1870, 1877, 36 635 (1973); see 1(b) 79a(b). entrusted expertise corporate finance, task Act. carries out duties essentially monitoring inter-affiliate eliminating potential interest. generally Act: Hearings H.R. 5220, 5465, 6134 Subcommittee Conservation House Committee Commerce, 97th Cong., 2d Sess., 553, 579-583 (1982). distribution electricity. supra, 1877. administration later proper technical required energy transmission. FPA's principal goals ensure electricity reasonable." 205, 206(a) 824e(a). 25 supplement, supplant, Yet, overlap. areas, scrutiny despite difference agencies.4 allowed buy prices higher owned company, then intended relieve substantial structure. practicable. goal. vast majority utilities' requests merger assets. Florida Corp., 61,038, 61,092 (1978); Potomac Edison 54 F.P.C. 1465, 1466 (1975); Union Light, Heat 277, (1968); Buckeye 38 519, 520 (1967); 253, 259 Minnesota 37 1059, 1060-1061 Arkansas 35 341, 341 (1966); Orange Rockland Utilities, 34 107, (1965); Service New Hampshire, 32 1537, 1539 (1964); Pennsylvania 1263, 1265 Kentucky 622, 623 South Carolina Gas 29 1045, 1048 (1963); Philadelphia 28 1025, 1027 (1962); 844, 846 27 84 Cincinnati 1195, 1196 (1961); 1151, 1152 Alabama 1018, 1020 Northern 974, 977 Central Vermont 146, 149 457, 460 (1960); Commonwealth 94, 96 868, 869 Mississippi Valley 104, 737, 739 (1959); 458 780, 782 Conowingo 511, 513-514 157, 160 Wisconsin Michigan 358, 360 (1958); 355, 357 206-207 269, 276 Pacific 827, 829 (1957); 532, 536-537 525, 528 395, 397 135, 137 44, 46 Amesbury 899, 901 669, 670 639, 641 Georgia 324, 327 876, (1956); Scranton 1078, 1081 St. Joseph 985 (1955); Frontier 941, 944 Aluminum 829, 830 Baltimore 821, 822 [Footnote continued page 82] slight indication legislative history conferees added cf. H.R.Conf.Rep. 1903, 74th 1st 75 (1935), contradicted fact revision eliminated word previously appeared "facilities," rather introduced Compare 63 S. 2796, 292 (in House, June 13, 1935), 295 Senate, May 1935). overborne text. Water 706, 711 Connecticut River 501, 503 1563, 1564 (1954); 1334, 1335 1300, 1302 907, 908 West Penn 866, 868 1437, 1438 (1953); Lake Superior 1434, 1435 1394, 1395-1396 1318, 1319 Louisiana 1168, 1169 Kansas City 1112, 1113 (1952); 1114, 1115-1116 1069, 1070 1070, 1071 Missouri 1120, 1122 (1951); Athol 729, 731 1304, 1306 (1950); Rhode Island Transmission 942, 859, 861 Northwestern Illinois 862, 863-864 Indiana 617, 619 997, 997 (1949); Bellows Falls Hydro-Electric 777, 780 (1948); 428, 429 (1947); Virginia 458, 459 (1946); 1001, 1002 (1945); Worcester Suburban 929, 930-931 Wachusett 920, 921 California 812, 814 (1944); Utah 791, 792 General 783, 785 Empire 665, 669 51, 53-54 Eastern Shore 382, 384 (1943); Otter Tail 1054, 1056 Water, 960, 962 883, 885 (1942); Point Pleasant 755, 757 723, 724 719, 719 704, 706 Associated Maryland 646, 652 Montana-Dakota 629, 631 re 544, 546 557, 558 Olcott 310, 312 1007, 1011 935, 936 (1941); Twin State 122, 123 (1940); Lexington 787, 787 (1939); Evans, 515-518 (1937). 83.] A large number discussing arose 204, issuance. F.P.C., 259; 108; 1027; 97, 98-99 623, 626 Holyoke 676, 678 513-514; 214, 215 207; 275-276; 826 536-537; 880; Interstate 1355, 1356-1357 1302; 1111, 1112 Oklahoma 52, 631; 1099, 1100 1027, 1028 1022, 1024-1025 Nevada-California 956, 957 937; 350, 356 Sierra 839, 841 831, 833 (1940). Only few involved 301 (accounting requirements) 304 (reporting requirements). Appalachian 1199, 1223-1237 Jersey 858, 859 Metropolitan 736, 737 106, 127-128 254, 257 (1942). follow regarded action treatment be, (implicit SOCCO). find same" acquisition. pricing pre-empted agree little guidance interpreting 318's " 'other matter' language. ante, 421, n. information provided cancels out. Conference Report contains statement inclusive. That stated: "The conference substitute [of 318] enlarged include arising bill." (1935). accompanied Report, indicates subset "acquisition of" section. version provided: Id., 63. 75-76. 76-77. For example, 79j, company acquire utility. seeks, things, avoid undue concentration control utilities. 79j(b). 203 approve utility's lease, merger, consolidation facilities. maintain adequate service coordination Savannah Elec. 42 61,240, 61,778 (1988). improper differing focus

Category: 7