Document: 350 U.S. 332 76 S.Ct. 373 100 L.Ed. UNITED GAS PIPE LINE COMPANY, Petitioner,v.MOBILE SERVICE CORPORATION and Federal Power Commission. FEDERAL POWER COMMISSION, Petitioner, v. MOBILE CORPORATION. Nos. 17, 31. Argued Nov. 7, 8, 1955. Decided Feb. 27, 1956. [The balance of this page intentionally left blank] Mr. Howard E. Wahrenbrock, Washington, D.C., for F.P.C. Thomas Fletcher, Houston, Tex., United Gas Pipe Line Co. William C. Chanler, New York City, respondent Mobile Service Corp. Justice HARLAN delivered the opinion Court. 1 The question presented in case is whether under Natural Act, 52 Stat. 821, 15 U.S.C. § 717 et seq., U.S.C.A. a regulated natural gas company furnishing to distributing long-term contract may, without consent company, change rate specified simply by filing new schedule with pertinent provisions Act are set forth margin.1 2 Respondent Corporation (Mobile), distributor domestic industrial users Mobile, Alabama, acquires its from petitioner Company (United), 'natural-gas company' subject regulation Act. In 1946 Ideal Cement (Ideal), planning construct cement plant city provided it could be assured supply at sufficiently low rate, obtained an agreement furnish 10—year term 12 cents per MCF (thousand cubic feet). turn, before entering into Ideal, resale equivalent 10.7 MCF, substantially lower than that other furnished United. This was filed Commission as amendment general contracts between United, and, approval Commission, became part United's schedules rates contracts. 3 June 1953 which purported increase on 14.5 more closely approximating Claiming not thus unilaterally petitioned reject filing. denied petition, holding 4(d) being non-suspendible automatically effective 30 days after would remain effect unless until should, investigation 4(e), determine unlawful. paid April 15, 1955, when approval, accepted assignment Mobile's Ideal.2 made pending lawfulness moot, since Commission's view determination matter have no retroactive effect. Thus only us property collected difference old 10.7-cent 14.5-cent during period July 25, (when purportedly went effect), 1955 took over contract)—a sum aggregating approximately $240,000. On petition review, Court Appeals Third Circuit (Hastie, J., dissenting) reversed order, directed insofar question, held entitled return amounts excess rate. 215 F.2d 883. Both had intervened Appeals, certiorari, we granted because importance administration 348 950, 75 446, 99 742. For reasons discussed below, hold does give companies right their own unilateral action. 4 solely one proper interpretation there claim statute, if interpreted permit contracts, unconstitutional. Cf. Midland Realty Kansas City P. & L. Co., 300 109, 57 345, 81 540. Act3 requires file all 4(c), authorizes modify any or determines 'unjust, unreasonable, unduly discriminatory, preferential', 5(a). Changes previously must least they go effect, 4(d), except rates, may suspend operation reasonableness, 4(e). If decision has been reached suspension expires, maximum five months, allowed but order date. 5 construing should bear mind evinces purpose abrogate private such. To contrary, requiring expressly recognizes particular customers individual respect, marked contrast Interstate Commerce precludes agreements requirement shippers uniform, unnecessary provision See Armour Packing States, 209 56, 28 428, 681. brief basic diifference two Acts notes differing natures industries gave rise it. vast number retail transactions railroads policing administratively impossible; accomplished compliance single applicable shippers. hand, relatively few wholesale these typically require substantial investment capacity facilities service distributor. Recognizing need circumstances create individualized arrangements distributors, permits relations parties established initially contract, protection public interest afforded supervision end public. 6 directly issue here provides 'no shall natural-gas such (filed) * thirty days' notice Commission', given showing changes time It argued less days. face, however, prohibition, grant power. purport say what 4(c) purports define constitutes 'contract' section says cannot Commission; can made. Absent announcement course nullity, find basis language inferring mere imposition filing-and-notice intended make action otherwise all. short, face indicates valid put giving required further empower reading neither nor reasonably implied. 7 argued, different conclusion compelled read Petitioners attempt characterize setting up separate distinct 'procedures' changing rates: (1) 'hearing order' procedure 5(a) existing unreasonable made; (2) 'filed-rate' (e) initiate changes, event concern reasonableness These said complementary mutually exclusive procedures, choice which—since both relate 'contracts' well depends who seeking sought changed embodied contract. From characterization petitioners conclude initiates proceedings governed exclusively (e), hence power 4(e) aside found 8 major defect argument assumes answer very issue—whether empowered 'initiate' 4(d). That so-called proves changed, unilaterally. Moreover, premise §§ alternative rate-changing itself based misconception structure sections parts statutory scheme companies, otherwise, modified upon finding merely defines review powers imposes duties necessary effectuate those powers; initial rate-setting companies. 9 defined determines, hearing, preferential'. 'rate-making' 'rate-changing' procedure. first instance determined unlawful, remedy them. Section force apply long-established newly latter implemented All does, add power, (except 'industrial' rates), preserve status quo suspending limited period, thereafter retroactive, means refund procedure, date effective. scope same fixed lawful. 10 limitations imposed out requirements: retes likewise filed. addition, readily seen requirements implement 5(a): obviously exercise functions, 30-days' advance essential afford reasonable 11 relationship affords support petitioners' establishing 'procedure'—a 'proceeding' 'initiated' 'proposed' change. 'proposals' 'change by' effected, all, virtue company's make, 'change' completed rate—it unlawful equally review. Likewise, A proceeding initiated but, so, manner is, complaint motion. interim way affects character proceeding, remains, like company. 'procedure' either making rates; rates. rate-making undefined unaffected relevant fully explained defining implementing nothing indicate were do more. Admittedly, presumes them time, nowhere defined. obvious implication that, specifically possess absence Act: establish ex parte, will, offered prospective customers; fix mutual agreement, agreed customer. No full meaning consistent this, parte agreed-upon contract—can Hence infer right, possessed 13 Our promotes purposes By preserving integrity stability agree health industry. Conversion consumers, particularly users, use frequently investments consumer unwilling commitments distributor, hardly whenever interests so dictate. history furnishes point. denying impairs regulatory paramount interest. accommodation conflicting hand other. 14 noted also interpretation, while precluding deprive avenue relief coincide investigate 'upon State, municipality, State commission, motion'. Thus, understandably explicit standing complain represent might discriminated against, prevent information requesting motion.4 And conflict interest, authorize increasing prior decisions cited opposite result distinguishable. 681, railroad shipper justify payment shipments increased railroad. decision, 49 uniform comply tariff precluded varying terms schedules. contention fact illegal that—as Armour—United lawfully complied wanted to. Light 540, statute state court authorizing utility Wichita Railroad Public Utilities Kansas, 260 48, 43 51, 67 124, yet construed court, utility, extent rested original similar strong our 16 Courts squarely ruled District Columbia Circuits, concluded Act,5 virtually identical 824 seq.,6 changes.7 Fifth Circuit, although distinguishing procedural ground, indicated contrary conclusion.8 referred numerous statutes degrees similarity some authorized9 others not.10 Taken whole, prove little open guidance 17 gives unilaterally, follows nullity remained lawful There doubt unauthorized unuthorized orders 'necessary appropriate carry Act', 16, failure 'permitting' become error. Any erroneous therefore unlawfully collected, obligated restitution payments. Baltimore Ohio R. 279 781, 492, 73 954. 18 Affirmed. 'Sec. 4. (c) Under rules regulations prescribe, every within (not sixty takes (June 21, 1938)), form designate, keep convenient place inspection, charges transportation sale jurisdiction classifications, practices, affecting charges, together affect services. '(d) Unless orders, charge, classification, service, rule, regulation, relating thereto, Such keeping inspection stating plainly then will good cause shown, allow take herein specifying published. '(e) Whenever authority, initiative complaint, once, formal pleading notice, enter hearing concerning service; thereon, delivering affected thereby statement writing suspension, defer longer months beyond effect: Provided, authority only; hearings, goes reference thereto expiration motion filing, proposed Where effective, bond, approved ordered accurate accounts detail received reason increase, whom whose behalf paid, completion refund, portion justified. At involving charge increased, burden proof show just questions preference decide speedily possible.' 822—823, 717c, 717c. 5. (a) classification demanded, observed, charged, connection gas, practice, unjust, preferential, reason- able observed force, order: contained currently accordance company; decrease where lowest rates.' 823—824, 717d, 717d. pay transporting Ideal. Since assigned net earlier Mobile. note 1, 375, supra. 14(a) providing part: 'The person facts investigation.' 828, 717m, 717m. F.P.C., Cir., 883, below. Sierra Pacific 96 U.S.App.D.C. 140, 223 605, affirmed 348, 368. Colorado 142 943, 954, 324 581, 65 829, 89 1206. Tyler 217 73. E.g., Lamar Town Wiley, 80 Colo. 18, 248 1009; 338 Mo. 1141, 93 S.W.2d 540; Suburban Water Oakmont Borough, 268 Pa. 243, 110 A. 778; North Coast Comm., 114 Wash. 102, 194 587. Rutland Ry. Burditt Bros., 94 Vt. 421, 111 582; Commonwealth rel. Page Milling Shenandoah River Corp., 135 Va. 47, 68—73, 115 S.E. 695, 701—703; re Searsport 118 Me. 382, 392—393, 108 452, 457—458; see Attleboro Steam Elec. Narragansett Lighting D.C.D.R.I., 295 F. 895.

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