Consolidated Rail Corp. v. U.S.

Decision Date23 February 1987
Docket Number82-3175,82-3144,82-3116,82-3113,Nos. 81-3080,82-3114,81-3082,83-3336,83-3337,s. 81-3080
Citation812 F.2d 1444
CourtU.S. Court of Appeals — Third Circuit
PartiesCONSOLIDATED RAIL CORPORATION, Petitioner, v. The UNITED STATES of America and the Interstate Commerce Commission, Respondents, Carolina Power & Light Company, et al., Intervenors, the Atchison, Topeka and Santa Fe Railway Company, et al., Intervenors. The WESTERN COAL TRAFFIC LEAGUE, Petitioner, v. UNITED STATES of America and Interstate Commerce Commission, Respondents, Carolina Power & Light Company, et al., Intervenors, Virginia Electric and Power Company, et al., Intervenors. ELECTRIC FUELS CORPORATION, Petitioner, v. UNITED STATES of America and Interstate Commerce Commission, Respondents, the Atchison, Topeka and Santa Fe Railway Company, et al., Intervenors. CHESSIE SYSTEM RAILROADS, et al., Petitioners, v. INTERSTATE COMMERCE COMMISSION and United States of America, Respondents, the Atchison, Topeka and Santa Fe Railway Company, et al., Intervenors. EDISON ELECTRIC INSTITUTE, Petitioner, v. INTERSTATE COMMERCE COMMISSION and United States of America, Respondents, the Atchison, Topeka and Santa Fe Railway Company, et al., Intervenors. ALABAMA POWER COMPANY, et al., Petitioners, v. UNITED STATES of America and Interstate Commerce Commission, Respondents, Central Illinois Light Company, et al., Intervenors. WESTERN COAL TRAFFIC LEAGUE, Petitioner, v. UNITED STATES of America and Interstate Commerce Commission, Respondents, Eastern and Southern Coal Hauling Railroads (Chessie System Railroads, et al.), Atchison, Topeka and Santa Fe Railway Company (Western Railroads), Intervenors. CAROLINA POWER & LIGHT COMPANY, Duke Power Co., Iowa Power & Light Co., Iowa Public Service Co., the Kansas Power and Light Co., Kerr-McGee Corp., Oklahoma Gas & Electric Co., Omaha Public Power Dist., S. Carolina Electric & Gas Co., Southwestern Electric Power Co., and Tampa Electric Co., Petitioners, v. UNITED STATES of America and Interstate Commerce Commission, Respondents, Atchison, Topeka and Santa Fe Railway Co., et al., Intervenors. CONSUMER OWNED POWER COALITION, Petitioner,

Robert S. Burk, General Counsel, Ellen D. Hanson, Associate General Counsel, Timm L. Abendroth (argued), Washington, D.C., for I.C.C.

Douglas Ginsburg, Asst. Atty. Gen., John J. Powers, III, John P. Fonte, Attys., Dept. of Justice, Washington, D.C., for United States.

R. Eden Martin (argued), Richard E. Young, David M. Levy (Robert B. Batchelder, Philip S. Brown, Samuel R. Freeman, Christopher A. Mills, William R. Power, Donal L. Turkal, Stuart E. Vaughn and Richard E. Weicher, of counsel), Sidley & Austin, Washington, D.C., for Western Railroads.

Paul A. Cunningham (argued), Robert M. Jenkins, III, Merc D. Machlin (Richard B. Allen, Fred R. Birkholz, John A. Daily, James L. Howe, III, Richard W. Kienle, Charles C. Rettberg, Jr., James L. Tapley, Donald M. Tolmie and Anne E. Treadway, of counsel), Pepper, Hamilton & Scheetz, Washington, D.C., Laurence Z. Shiekman John F. Donelan, John M. Cleary and Frederic L. Wood (argued), Donelan, Cleary, Wood & Maser, P.C., Washington, D.C., for Carolina Power and Light Co., Duke Power Co., South Carolina Elec. & Gas Co., Tampa Elec. Co., Kerr-McGee Coal Corp., Iowa-Illinois Gas and Elec. Co., Iowa Power & Light Co., Iowa Public Service Co., Iowa Southern Utilities Co., Oklahoma Gas & Elec. Co., Southwestern Elec. Power Co., Omaha Public Power Dist., and Iowa Elec. Light & Power Co.

and Thomas E. Zemaitis, Pepper, Hamilton & Scheetz, Philadelphia, Pa., for Eastern and Southern Railroads.

John M. Cutler, Jr. and Charles J. McCarthy, McCarthy, Sweeney & Harkaway, P.C., Washington, D.C., for Atlantic City Elec. Co., Commonwealth Edison Co., Madison Gas and Elec. Co., Monongahela Power Co., Pennsylvania Power & Light Co., Cleveland Elec. Illuminating Co., Union Elec. Co., Wisconsin Elec. Power Co., Wisconsin Power & Light Co. and Wisconsin Public Service Corp.

James M. Casey (argued), Daniel John Regan, Jr., Reid & Priest, Washington, D.C., for Dayton Power and Light Co.

John Guandolo and Vern W. Hill, MacDonald, McInerny, Guandolo, Jordan, & Crampton, Washington, D.C., and A.T. Udrys, Jackson, Mich., for Consumers Power Co.

Harry H. Voight, Leonard M. Trosten and Michael F. McBride, Leboeuf, Lamb, Leiby & MacRae, Washington, D.C., for Edison Elec. Institute.

J. Raymond Clark, Washington, D.C., for Central Illinois Light Co., Central Louisiana Elec. Co., NERCO, Inc., Potomac Elec. Power Co., Public Service Co. of Indiana, Inc., South Carolina Public Service Authority and System Fuels, Inc.

William L. Slover, C. Michael Loftus, Donald G. Avery, John H. LeSeur and Kelvin J. Dowd, Slover & Loftus, Washington, D.C., for Western Coal Traffic League, Consumer Owned Power Coalition and Eastern Coal Transp. Conference.

John R. Molm and Charles V. Gerkin, Jr., Troutman, Sanders, Lockerman & Ashmore, Atlanta, Ga., for Alabama Power Co., Georgia Power Co., Gulf Power Co., Mississippi Power Co. and Southern Co., Services, Inc.

Dennis N. Barnes, Morgan, Lewis & Bockius, Washington, D.C., for Elec. Fuels Corp.

Before GIBBONS, Chief Judge, BECKER, Circuit Judge, and VAN ARTSDALEN, * District Judge.

OPINION OF THE COURT

GIBBONS, Chief Judge:

This case is before us on petitions, pursuant to 28 U.S.C. Secs. 2321(a) and 2342(5) (1982 & Supp. III 1985), to enjoin or suspend an order of the Interstate Commerce Commission (ICC) issued on September 3, 1985 in Ex Parte No. 347 (Sub-No. 1), Coal Rate Guidelines, Nationwide, 1 I.C.C.2d 520 (1985). The proceeding in which the order was entered is part of the ICC's continuing effort to comply with the deregulation mandates of the Railroad Revitalization and Regulatory Reform Act of 1976, Pub.L. No. 94-210, 90 Stat. 31 (hereinafter 4 R Act) and the Staggers Rail Act of 1980, Pub.L. No. 96-448, 94 Stat. 1895 (hereinafter the Staggers Act). In Bessemer & Lake Erie R.R. v. I.C.C., 691 F.2d 1104 (3d Cir.1982), cert. denied, 462 U.S. 1110, 103 S.Ct. 2463, 77 L.Ed.2d 1340 (1983) this court upheld the ICC's rule adopting as the standard of revenue adequacy for market dominant carriers a rate of return on a net investment equal to the current cost of capital. The instant case involves an issue concerning the ICC's maximum rate guidelines for coal not presented in Bessemer--the extent to which the ICC may permit differential pricing for market dominant carriers who have not achieved revenue adequacy. The Final Guidelines embodied in Ex Parte No. 347 impose four constraints on market dominant carrier rates for captive coal shippers. We hold that the four constraints in the Final Guidelines are consistent with the 4 R Act and the Staggers Act. Thus we will affirm the ICC order insofar as it is challenged by various shipper...

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