NORTHERN NATURAL GAS COMPANY, DIVISION OF INTERNORTH, INC., PETITIONER,
v.
FEDERAL ENERGY REGULATORY COMMISSION, RESPONDENT; NORTHERN NATURAL GAS COMPANY, DIVISION OF INTERNORTH, INC., PETITIONER, V. FEDERAL ENERGY REGULATORY COMMISSION, RESPONDENT

D.C. Cir. | 1985-12-31
Nos. 84-1516, 85-1045
780 F.2d 59 United States Court of Appeals for the District of Columbia (1985) Positive Treatment
Cited by 10 cases

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Holding

The court held that a condition requiring a natural gas company to credit fixed cost recoveries from discounted sales to non-discount customers impermissibly altered previously approved rates for services not before the Commission in the Section 7 certification proceeding, and that a future crediting condition was not ripe for review.


Facts & Procedural History

Northern Natural Gas sought a certificate to sell gas at discounted rates to customers with alternate fuel capacity. The Federal Energy Regulatory Com…

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Opinion of the Court
SCALIA, Circuit Judge: PER CURIAM:

PER CURIAM:

The suggestions for rehearing en borne have been circulated to the full Court. Voting was called for and at least a majority of the judges of the Court in regular active service have voted in favor of the suggestions for the limited purpose of deciding whether the Court should reconsider its holding in Panhandle Eastern Pipe Line Co. v. FERC, 613 F. 2d 1120 (D.C.Cir.1979). Upon consideration of the foregoing, it is ORDERED, by the Court, en banc, as follows:

1. The suggestions for rehearing en banc are granted.

2. Part II of the Court’s opinion of December 31, 1985, as well as the last paragraph of the opinion of the same date, are vacated.

3. The parties shall file 30 copies each of supplemental briefs directed to the question of whether this Court should continue to adhere to its decision in Panhandle Eastern Pipe Line Co. v. FERC, 613 F. 2d 1120 (D.C.Cir.1979), and, if not, in what respects it should depart therefrom.

. It is not clear that belief was justified. Unquestionably, total sales contemplated at the time of the settlement were expected to cover fixed costs. But the whole basis of Northern’s application was that the contemplated level of sales would not be reached, as fuel-switchable customers left the system. The sales to the remaining customers might well not cover fixed costs. Or to put the point another way, since the discount customers consisted of only preexisting customers the fixed-cost recovery from them would be largely if not entirely identical to, rather than in addition to, the fixed-cost recovery contemplated in the settlement. Our disposition of the case makes it unnecessary to consider whether this apparent shortcoming in the Commission’s reasoning is an independent ground for reversing its order. . The Commission suspended, if it did not permanently terminate, the discount sales program by refusing Northern’s recent request for extension. Northern Natural Gas Company, Division of InterNorth, Inc., Docket No. CP83-14-103 (Oct. 25, 1985) (Order denying petition to amend certificate),


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