Legal Document

376 U.S. 205 84 Supreme Court Reporter 644 11 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 638 FEDERAL POWER COMMISSION, Petitioner,v.SOUTHERN CALIFORNIA EDISON COMPANY et al. CITY OF COLTON, CALIFORNIA, Petitioner, versus SOUTHERN Nos. 71, 73. Argued Jan. 14, 1964. Decided March 2, Rehearing Denied April 20, See 377 913, 1161. Ralph S. Spritzer and John W. Cragun, Washington, D.C., for petitioners. Boris or Haw. Hawai‘i KFH45 A2 Lakusta, San Francisco, Cal., R. Bury, Los Angeles, Mrs. Mary Moran Pajalich, respondents. Mr. Justice BRENNAN delivered the opinion of Court. 1 Petitioner City Colton, California (Colton), purchases its entire requirements electric power from respondent Southern Edison Company (Edison), a utility company which operates in central southern sells energy only to customers located there. Colton applies some purchased municipal uses, but resells bulk it thousands residential, commercial, industrial environs. Respondent Public Utilities Commission (PUC) had years exercised jurisdiction over Edison-Colton sale petitioner Federal Power (FPC), on Colton's petition filed 1958, asserted jurisdiction1 under § 201(b) Fed ral Act extends federal regulatory 'sale at wholesale interstate commerce.' 49 Statutes-at-Large 838, 847, 16 Code KF62 §§ 791a, 824—824h.2 The Appeals Ninth Circuit set aside FPC order. 310 Reporter, 2nd 784. 2 Some markets originates Nevada Arizona. has contract with Secretary Interior which, as agent States, generates Hoover plants Nevada. This allocates 7% total firm generating capacity Dam.3 is also party 1945 Metropolitan Water District entitled portion unused allocated Dam. Payment this made credit District. Also, Dam, Davis Dam Arizona, Parker are interconnected by transmission line drawn agreement 3 found, extensive record before Hearing Examiner, that out-of-state was included ruled commerce subject Sections 201, 206 Act.' 26 F.P.C. 223, 231.4 4 did not pass upon question whether finding reached support record.5The court assumed such support, held nevertheless grant rates FPC. It concluding words 201(a)—'such regulation, however, (is) extend those matters regulation States'—confined wholesales constitutionally beyond state force Commerce Clause, Article I, 8, Constitution. Accordingly, no because PUC permissible Clause. Because importance administration we granted separate petitions certiorari Colton. 372 958, 83 1014, 10 11. We reverse. hold grants all sales expressly exempted itself,6 properly sale. 5 view limiting language 201(a), read together jurisdictional 201(b), meant could assert Clause allowed State regulate. Such determination permissibility would require, said, an analysis impact national interest commerce. here compelled conclusion lacked jurisdiction, prejudice interests any other State. rested Arizona Nevada, than might claim be concerned sale, were already given protection Interior's control initial energy. Since first since subsequently sold resale consumed wholly within California, there said 'complete lack part state,' therefore exempt regulation. F.2d, 789. 6 rejected argument incorporated congressional decision against determining FPC's case-by-case analysis, favor employing more mechanical test bring except specifically exempted, exclude retail sales. In reviewing court's ruling do write clean slate. decisions past quarter century have Congress, enacting Natural Gas Act, apportioned between governments according developed series cases grew out same judicial history concerned; counterpart 1(b) 15 717(b), became law three later 1938.7 7 adopted Congress beginning commission Kansas Landon, 249 236 39 268, 63 L.Ed. 577, Pennsylvania Service Comm'n, 252 23, 40 279, 64 434. does prohibit regulating gas directly consumers even though mains. Missouri ex rel. Barrett Co., 265 298, 309, 44 544, 546, 68 1027, sketched side picture holding prohibited rate independent distributing companies local consumers. last line, one led intervention, Rhode Island Attleboro Steam & Elec. 273 83, 47 294, 71 549. There generated plant Massachusetts company, took delivery Attleboro. Gas, supra, controlled, case involve 'a charged consumers,' concern both 'national character.' Consequently, 'if required can attained exercise vested Congress.' U.S., 89—90, S.Ct., 296, 8 undertook through 1935 1938. premise constitutional limitations essential if major aspects go unregulated. Attleboro, cited, figured prominently debates reports.8 Illinois Central 314 498, 62 384, 86 371, determine scope meet problem revealed cases. specific selling distributors single State's facilities connect them distributor, extensions exclusively matter noted prior been another flexible approach Clause; these 'less find point time space where ends intrastate begins, (have) looked nature involved, objective state, effect 505, 387, 371. But rather adopting approach, applied instant case, 'undertook regulate * without necessity, acted, drawing precise litigation particular cases.' Id., 506—507, 388, What adopt denied 'at companies' 'local ultimate consumers.' 504, 386, 9 consistently reaffirmed subsequent Panhandle Eastern Pipe Line Comm., 332 507, 190, 92 128, considered reach '(t)he statute thus clear complete. cut sharply cleanly direct consumptive uses. No exceptions either category quantities otherwise.' 517, 195, 128. Comm. 345 295, 73 706, 97 1020, 'Congress interpreted (Attleboro) prohibiting resale, so armed precisely power,' 308, 714, further 'Part II (of Act) result They together. latter left states licensees' commerce, while former established sales.' 311, 715, 1020. Plainly, Appeals' reading 201(a) proviso requiring appraisal each inconsistent decisions. Section embodies power, merely 'policy declaration great generality. cannot nullify seems broadly expressed purpose.' Connecticut Light 324 527, 65 754, 89 1150. reiterated '(t)o conceive (§ 201(a)) now bench mark Commission's affirmation authority speculate about purpose support.' short, our squarely electricity determined interest. Rather, draw bright easily ertained, making unnecessary analysis. done plenary extending explicitly States. exception covering sale.9 alternatively exemption fact Boulder Canyon Project 45 1061, 43 617e, 'control service absence agreement' provides '(h)e shall conform provisions rules regulations Commission, devised may hereafter devised, investor consumer.' reversed Examiner's exclusive energy, 'what enactment containing comprehensive scheme (Section 201(b)).' F.P.C., 227. decide 786, n. 2. 12 think reasoning underlying 343 414, 72 843, 96 1042, applicable here, requires upholding jurisdiction. Those involved precluded provision 1920 similar 6. Part N Dec. Immigration Nationality Decisions when enacted 1935. 20 provided services connection hydroelectric projects licensed regulated whenever 'any enforce section unable agree their constituted authorities *.' Act. ordered licensee show cause why argued inapplicable, relying contending contained affirmative precluded. evidence intended give what essentially until and: 13 'The sweep (201(b)) fixed examined legislative 201(b)); purport quite clear. nothing indicat Congress' conception states' disability 1935, gave II, include electricity. fact, unqualified statements concerning opposite construction, explained again empowering agency resale; once spoken conditioned having produced steam generators nonlicensed dams.' 307—308, 14 Maryland distributor power. sustaining contention Part, 418—419, 845—846, 1042. Under principal function FPC, then composed Secretaries War, Interior, Agriculture, licensing, construction operation development projects. Its based navigable waters public lands, incident licensing fill hiatus otherwise exist legislation rests assumption An compels conclusion. parallel two sections unmistakable. Licensing itself authorized construction. general supervisory him powers analogous Act.10 While track belies assertion assumed, contrary breadth power11 intersticial Although become after decided, proposed earlier, appear attention ever directed significance effectiveness section.12 17 On hand, demonstrates believed related forego displace A proper superseded repealed 18 judgment reversed. 19 Reversed. presently 10-year continues month end term terminated written notice. PUC, approved second increase rates, requested institute investigation hearing ordered. staff participated hearings followed. supported opposed. Examiner dismissal found attached July 1, 1954. file cease desist charging excess authorization. account sums collected 1954, establish special reserve 223. 201 pertinent follows: '(a) hereby declared necessary interest, '(b) apply *. next following, used distribution '(d) wholesale' means person resale. '(e) 'public utility' following who owns Part.' admits meaning 201(e) virtue ownership lines running Chino substation status Cf. 515, 749, 205(a) 206(a), 824d, 824e. briefs argue substantial record. Among findings, found: 'On basis record, during 596 hours 598 six months 1,338 2,065 1955, 270 1,954 1956, 199 1,388 1957, 1,115 1,479 1958; deliveries 341 746 1955 31 1956.' 231. Of course, facts, evidence, conclusive.' 313(b). '(f)ederal follow flow engineering scientific, legalistic governmental test.' 529, 755, (Emphasis supplied.) proofs. sharp conflict scientific received own experts afforded rest findings trace argues de minimis amount attach account. relevant discretion should assume Pages 535—536, 758—759, Here concededly circumstance 'no reject jurisdiction.' 236. excludes 'over distribution.' raise prevented distribution' 201(b). Whether distribution—although limitation legal standard must addition technological test, Page 531, 756, L.E . 1150—involves decided original matter. 'there owned uses distribution. These portions kv. Globe mills Derby customer retail. serve customer, several lighted highway signs, residence railroad house they transformers Substation transform into relevant.' 232. ample specialized experience questions. is: transportation natural consumption domestic, industrial, use, natural-gas engaged production gathering gas.' 52 821 (1938), 717(b). S.Rep.No. 621, 74th Cong., 1st Sess., 17—54 (1935); H.R.Rep.No. 1318, 7—8 (1935). House Senate Committees reflect consensus earlier decisions, deni d transaction Hearings Committee Interstate Foreign H.R. 5423, 96, 402, 421—422, 435, 497—498, 518, 521—523, 1612, 1614, 1622—1623, 1629, 1639, 1642, 1656—1657, 1679, 2143, 2144, 2156 1725, 250—251, 760, 767, 768, 800—801 solicitor National Association Railroad Commissioners hearings: 'That accepted everybody establishing transactions, although rate.' 1657. At he said: bill 201(b)) Government transactions long consumers; producer supplying company.' 756—757. 'It follows business passes supplied Government.' 768. 1954 amended persons receiving transmitting solely 36, 717(c). proposal similarly limited field died Committee. Subcommittee 2972 2973, 80th Sess. duty fix enable recoup costs building dam associated facilities. 21, 1928, chapter 42, 4(b), 5, 1057, 1059, 1060, 617c(b), 617d; Adjustment 19, 1940, 643, 54 774, 618. 201(f) exempts Secretary's Edison's As originally introduced, reference resales Compare 6251, 69th (1925), 5773, 70th (1927). presented his views letter form Irrigation, warned requirement shall, agreement, reg late services, security issues lessees, transmitted Irrigation Reclamation S.Res. Number 320, pt. 6, 893 (1925). present generally conceded letter, apparent that, far being referred defining contingency asserted. merit failure repeal passing amended, 618—618p, May 28, 241, 143, evinces intention rates. 1940 modified method bearing H.R.Rep. 2328, 76th 3d (1940).

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