Document: 371 U.S. 145 83 S.Ct. 211 9 L.Ed.2d 199 FEDERAL POWER COMMISSION, Petitioner,v.TENNESSEE GAS TRANSMISSION COMPANY, The Manufacturers Light and Heat Company, Ohio Fuel Gas Company United Company. CITY OF PITTSBURGH, PENNSYLVANIA, Petitioner, v. TENNESSEE COMPANY et al. Nos. 48, 50. Argued Oct. 17, 1962. Decided Dec. 3, Ralph S. Spritzer, Washington, D.C., for petitioner in No. 48. Charles Rhyne, Harry Littman, respondent Tennessee Transmission Co. Brooks E. Smith, New York City, respondents & Co., Mr. Justice CLARK delivered the opinion of Court. 1 This case involves authority Federal Power Commission after hearing to order an interim rate reduction as well a refund amounts collected excess thereof where portion previously filed increased is found unjustified but remainder proceeding deferred. Respondent natural gas company, included within its schedule 7% over-all return on net investment. In considering this item1 along with others involved filing, including allocation cost service among zones, concluded, full hearing, that 6 1/8% rather than would be just reasonable return. It accordingly required file reduced rates, based lower figure, retroactive end five-month suspension period, ordered excessive since date. 24 F.P.C. 204. Court Appeals, 293 F.2d 761, was reasonable. held, however, by divided vote, erred ordering immediate it had not determined other issues proceeding, particularly proper costs company's services six zones. latter, court reasoned, might determinative ultimate question whether rates each zone were reasonable; therefore, result irretrievable loss company. importance administration Natural Act led us grant certiorari, 368 974, 82 479, 7 437. We have concluded issuance appropriate exercise power granted Act. I. 2 does system-wide applicable all regardless performed. has early 1950's, approval, extensive pipeline system into zones differentials. these types customers then decided nor agreed upon between parties, left future decision. posture 1959 Gas, pursuant § 4(d) Act,2 proposed predicated which claim At inception hearings reasonableness Commission, under 4(e)3 authority, imposed period increase became effective subject any ultimately justified Proceedings. 3 Hearings commenced February 2, 1960, presented evidence staff latter alone issue treated separately from time proposal also pending another docket involving Gas. By motion requested simultaneously On August 5, denied, four days later issued attack here. finding Commission's determination failed justify greater 1/8%. Accordingly, disallowed return, retroactively date refunds differences time. contest investment contend require prior operation being unable realize during period. connection points out finally might, some above less ordered. able recoup collect higher those while make remaining 4 setting aside refund, unreasonable abuse discretion thus splinter issues, especially deemed 'ripe decision,'4 ruling 'essential element determining are excessive.' questioned confined such 'full hearing' 4(e) demands prerequisite ratechange order. 5 City Pittsburgh, acting behalf resident consumers gas, here separate cases. Since they raise identical factual legal we consider two cases together.5 II. As admit, there 'no question' orders. Indeed, general established Court, Comm. Pipeline 315 575, 62 736, 86 L.Ed. 1037 (1942); England Divisions Case (Akron, C. Y.R. States), 261 184, 43 270, 67 605 (1923), Courts Appeals. Panhandle Eastern Pipe Line Comm., 236 606 (C.A.3d Cir. 1956); State Corporation Kansas 206 690 (C.A.8th 1953). true none undecided retroactively. However, took pains point fact 'establishment regulated industry often steps different character, one may appropriately precede other.' U.S., at p. 584, S.Ct., 742. Significantly, fair 'the adjustment * so eliminate discriminations unfairness details.' Ibid. And specifically decrease 'without establishing specific schedule.' declared proviso 56 authorized 'order existing unjust unlawful, or lowest rates'. Finally, 167 placed 'issue orders find necessary carry provisions chapter.' Here similar action directing new reflect prescribed 7/8% and, addition, lower, substituted charges reflecting lawful initiated available was, our opinion, no consequence hazard making profit remains company instance. ,'discriminations unfairness' if present Pipeline's caused losses analysis policy clearly indicates initiating assumes hazards procedure. bears burden 'just reasonable.' can never income lost when exercised (e). sums thereafter should sustain proving rate, suffer further excessiveness makes adjustments detail filing. respect class too low, cannot subsequently allowed; hand, subjected ordered, must them. first instance do illegal gain latter. Such situations entirely consistent told, occur frequency. having initially either sufficient must, theory Act, shoulder incident only inadequate. Nor share doubts Appeals concerning practicalities two-step procedure invoked Commission. see how severance without guidance extent individual reduced, whom due.' F.2d, 767. revised been calculated 7%. unlawful due across board system. directed their payment. True, old structure discriminatory effect survives bit longer. But probabilities situation more offset certainty actions fixing giving timely effectiveness, refunds, Perhaps discrimination affect postponement continuing detriment Moreover, decreased resultant isolated instances could fixed 8 use technique keeping purposes 'to protect against exploitation hands companies *,' Hope 320 591, 610, 64 281, 291, 88 333 (1944), underwrite gas. *' Atlantic Refining Public Service York, 360 378, 388, 79 1246, 1253, 1312 (1959). Faced excessive, acted properly statutory issuing purpose afford complete, permanent bond protection charges. Id., 1253. To otherwise permitted additional 18 months8 over $16,500,000 consumers. exaction experience shown somewhat illusory view trickling down process followed, incidental borne consumer, transient nature society prevents reaching due.9 is, duty look backdrop practical consequences (resulting) Act,' Sunray Mid-Continent Oil 364 137, 147, 80 1392, 1399, 1623 (1960), exercising 16 due, direct payment earliest possible moment process. doing circumstances entering best tradition administrative practice. judgment reversed insofar set order; affirmed. 10 Reversed part. counsel, phases: (1) return; (2) factors, 15 U.S.C. 717c(d), U.S.C.A. 717c(d): 'Unless orders, change shall made natural-gas charge, classification, service, rule, regulation, contract relating thereto, except thirty days' notice public. given filing open public inspection schedules stating plainly changes force will go effect. good cause shown, allow take requiring herein provided specifying manner published.' 717c(e), 717c(e): (e): 'Whenever enter lawfulness service; decision thereon, delivering affected thereby statement writing reasons suspension, suspend defer longer five months beyond *.' note found: 'Hearings issue, severed Docket G—11980 order, December 1959, briefing thereon April 11, 1960. Tennessee's omission intermediate neither concurred parties proceeding. Further, recognize desirable, considerable size record, practicable interests interest Presiding Examiner, who knowledge proceed consideration render thereon.' Unreported Aug. Respondents Columbia Companies offer allocation. opportunity same parties. contention, merit. unreasonable, contemplated statute, even though did dispose entire case. 717d(a), 17 717d(a): d(a): '* Provided, That contained currently unless accordance company; unjust, unduly discriminatory, preferential, rates.' 717o, 717o: 'The perform acts, prescribe, make, amend, rescind rules, regulations chapter. Among things, rules define accounting, technical, trade terms used chapter; prescribe form forms statements, declarations, applications, reports information contain, filed. Unless specified therein, publication prescribe. Orders For regulations, classify persons matters jurisdiction requirements classes matters. All secretary kept convenient examination business hours. June 21, 1938, c. 556, 16, 52 Stat. 830.' following substantial cost-of-service still unresolved. If entered 22 months, $20,000,000. States unfound former remain accounts larger group escheats State; permit them defraying refund; fourth problem regarding transients prorated credited bills; includes reductions. While permissible cash, most approve plans whereby credits bills proportion average consumption.

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