Associated Gas Distributors v. F.E.R.C.
| Decision Date | 23 March 1990 |
| Docket Number | Nos. 88-1385,s. 88-1385 |
| Citation | 893 F.2d 349 |
| Parties | , 109 P.U.R.4th 162 ASSOCIATED GAS DISTRIBUTORS, Petitioners, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, The Peoples Gas Light & Coke Co., et al., Intervenors. to 88-1390, 88-1393, 88-1400, 88-1406, 88-1421, 88-1452, 88-1459 to 88-1463, 88-1502, 88-1503, 88-1512, 88-1524, 88-1534, 88-1536, 88-1538, 88-1560, 88-1565, 88-1568, 88-1598, 88-1616, 88-1624, 88-1638, 88-1642, 88-1655, 88-1656, 88-1695, 88-1766, 89-1165, 89-1218, 89-1279, 89-1303 and 89-1448. |
| Court | U.S. Court of Appeals — District of Columbia Circuit |
Petitions for Review of Orders of the Federal Energy Regulatory commission.
Timothy N. Black for Columbia Gas Transmission Corporation and Jennifer N. Waters with whom Frederick Moring, Toni M. Fine, Washington, D.C., for Associated Gas Distributors.
John H. Pickering, Gary D. Wilson, Neal T. Kilminster, Timothy N. Black, Washington, D.C., Stephen J. Small, Boston, Mass., Mark D. Clark, for Columbia Gas Transmission Corp.
Ronald N. Carroll, Wilmington, Del., for Inland Gas Co., Inc.
Stanley M. Morley and Paul W. Diehl, Washington, D.C., for Alabama-Tennessee Natural Gas Co.
Robert F. Shapiro and Thomas E. Hirsch, III, Washington, D.C., for American Paper Institute.
Lynne H. Church, Robert Fleishman, and Jeffrey D. Watkiss, for Baltimore Gas and Elec. Co.
Roberta L. Halladay and Marilyn A. Specht, Washington, D.C., for Connecticut Natural Gas Corp.
Stephen E. Williams, Henry E. Brown, Kevin J. Lipson, Charles C. Thebaud, Jr., and John E. Holtzinger, Jr., Washington, D.C., for CNG Transmission Corp.
Roger C. Post and John L. Shailer, Columbus, Ohio, for Columbia Gas Distribution Companies.
William I. Harkaway, Harvey L. Reiter, Washington, D.C., and Barbara M. Gunther, Brooklyn, N.Y., for Consol. Edison Co. of New York.
Veronica Smith and John F. Povilaitis, Harrisburg, Pa., for Pennsylvania Public Utilities Com'n.
Thomas M. Patrick, Mark J. McGuire and Karen Lee, for Peoples Gas Light and Coke Co.
Kevin J. McKeon, for Peoples Natural Gas Co.
Edward J. Grenier, Jr., William H. Penniman and James M. Bushee, Washington, D.C., for Process Gas Consumers Group and American Iron and Steel Institute.
Richard A. Solomon and David D'Alessandro, for Public Service Com'n of the State of N.Y.
James R. Lacey and William R. Hoatson, for Public Service Elec. and Gas Co.
Frank H. Strickler, Gordon M. Grout and Ralph E. Fisher, for Washington Gas Light Co. were on the initial joint brief, for certain petitioners and intervenors in support of petitioners in opposition to orders under review.
Gary E. Guy, Arlington, Va., with whom Augustine A. Mazzei, Jr., and Joseph P. Stevens, Washington, D.C., were on the initial brief, for petitioner, Equitable Gas Co.
Susan D. McAndrew with whom John H. Pickering, Timothy N. Black, Washington, D.C., Gary D. Wilson, Stephen J. Small, Boston, Mass., and Mark D. Clark, were on the brief, for RP83-8 and CP84-441 payments in Tennessee's purchase deficiency allocation method for Columbia Gas Transmission Corp.
Joel M. Cockrell, Atty., F.E.R.C., Washington, D.C., with whom Catherine C. Cook, Gen. Counsel, Jerome M. Feit, Sol., Washington, D.C., and Jill Hall, Atty., F.E.R.C. were on the brief, for respondent.
Barbara K. Heffernan with whom John W. Glendening, Jr., Bruce B. Glendening, and Thomas M. Preston, Washington, D.C., for Berkshire Gas Co., et al.
Harry H. Voigt, M. Reamy Ancarrow, Mindy A. Buren, Diane B. Schratwieser, Washington, D.C., and Edward B. Myers, for Niagara Mohawk Power Corp. and Orange and Rockland Utilities, Inc.
Ronald N. Carroll and L. Michael Bridges, Wilmington, Del., for Inland Gas Co., Inc. Donald K. Dankner, Washington, D.C., and Frederick J. Killion, for Cent. Hudson Gas and Elec. Corp.
William J. Cronin and Jonathan D. Schneider, New York City, for New York State Elec. and Gas Corp.
James R. Choukas-Bardlay and Demetrios G. Pulas, Jr., Washington, D.C., for Cities of Clarksville, Portland, and Springfield, Tenn. and Humphreys County Utility Dist., Tenn.
Michael J. Manning, James L. Moriarty, and James P. White, for Tennessee Small Gen. Service Customer Group.
David B. Ward and Allan W. Anderson, Jr., Washington, D.C., for Western Kentucky Gas Co. were on the joint briefs, for certain intervenors, distribution companies and natural gas pipeline companies in support of F.E.R.C.
Robert H. Benna with whom Robert G. Kern, Terence J. Collins, David D. Withnell, Washington, D.C., and Margaret L. Bollinger were on the brief, in support of F.E.R.C. for Tennessee Gas Pipeline Co.
Robert H. Benna with whom John T. Ketcham, David D. Withnell, Terence J. Collins, Washington, D.C., and Margaret L. Bollinger were on the brief, for petitioner, Tennessee Gas Pipeline Co.
Joshua L. Menter, was on the brief, for petitioner, North Penn Gas Co.
George L. Weber and Kenneth L. Glick were on the brief addressing the "base period" issue for petitioner, Nat. Fuel Gas Supply Corp.
Lynne H. Church, Robert Fleishman, and Jeffrey D. Watkiss for Baltimore Gas and Elec. Co.
Donald K. Dankner, Washington, D.C., Frederick J. Killion, for Cent. Hudson Gas and Elec. Corp.
Gary E. Guy, Arlington, Va., for Equitable Gas Co.
James J. Stoker, III, Arnold H. Quint, Washington, D.C., James F. Bowe, Jr., and O. Julia Weller, for Long Island Lighting Co.
George L. Weber, for Nat. Fuel Gas Supply Corp.
William J. Cronin, and Jonathan D. Schneider, New York City, for New York State Elec. and Gas Corp.
Margaret Ann Samuels, Joseph P. Serio, Columbus, Ohio, for Office of Consumers' Counsel, State of Ohio.
Glenn W. Letham Washington, D.C. and Kenneth M. Albert, for Pennsylvania Gas and Water Co.
Edward J. Grenier, Jr. and James M. Bushee, Washington, D.C., for Process Gas Consumers Group and the American Iron and Steel Institute.
Richard A. Solomon, David D'Alessandro, for Public Service Com'n of the State of N.Y. were on the joint brief, for petitioner, Consol. Edison Co. of New York, Inc., and certain intervenors on "sunset date" and "litigation exception" issues.
Jeffrey D. Watkiss, Lynne H. Church, Robert Fleishman, and Dan R. Skowronski, Baltimore, Md., for Baltimore Gas and Elec. Co.
John F. Povilaitis, Daniel P. Delaney, Harrisburg, Pa., and Veronica Smith, for Pennsylvania Public Utility Com'n.
John L. Shailer and Roger C. Post, Columbus, Ohio, for Columbia Gas of Kentucky, Inc., et al.
John M. Glynn and Paul S. Buckley, Baltimore, Md., for Maryland Peoples Counsel.
George L. Weber and O. Julia Weller, Arnold H. Quint, Washington, D.C., and James F. Bowe, Jr., for Nat. Fuel Gas Supply Corp.
Gary E. Guy, Arlington, Va., for Equitable Gas Co.
O. Julia Weller, for Long Island Lighting Co.
Frank H. Strickler, Gordon M. Grant, Washington, D.C., and Ralph E. Fisher, for Washington Gas Light Co., were on joint petitioners' and intervenors' initial brief on implementation issues.
John W. Glendening, Jr., Barbara K. Heffernan and Bruce B. Glendening, Washington, D.C., for The Berkshire Gas Co., et al.
Patricia A. Curran, Houston, Tex., for Cabot Corp.
David I. Bloom and Sharon A. Cummings, Washington, D.C., for Northern Illinois Gas Co.
Harry H. Voigt, M. Reamy Ancarrow, Mindy A. Buren, Diane B. Schratwieser, Washington, D.C., and Edward B. Myers, for Orange and Rockland Utilities, Inc.
Richard A. Solomon and David D'Alessandro, for Public Service Commission of the State of New York were on the joint reply brief for certain petitioners and intervenors on "R" gas and released gas issue.
Robert F. Shapiro and Thomas E. Hirsch, III, Washington, D.C., entered appearances for American Paper Institute, Inc.
Jerry W. Amos, Greensboro, N.C., entered an appearance for Nashville Gas Co., a division of Piedmont Natural Gas Co., Inc.
Robert S. Waters, Richard M. Merriman and Michael C. Tierney, Washington, D.C., entered appearances for Dayton Power and Light Co.
Charles J. McClees, Jr. and Craig H. Walker, entered appearances for Shell Offshore, Inc.
David L. Konick, Washington, D.C., entered an appearance for Brooklyn Union Gas Co.
Jack M. Irion, Shelbyville, Tenn., entered an appearance for East Tennessee Group.
Stephen R. Melton and William J. Grealis, Washington, D.C., entered appearances for United Gas Pipe Line Co.
James J. Hoecker, Chicago, Ill., entered an appearance for Arkla, Inc.
Before WILLIAMS, D.H. GINSBURG and SENTELLE, Circuit Judges.
Opinion for the Court filed by Circuit Judge SENTELLE.
The Federal Energy Regulatory Commission ("FERC" or "the Commission") orders at issue require us to turn once again to certain aspects of the Commission's Order No. 500, 52 Fed.Reg. 30,334 (1987), record remanded sub nom. American Gas Ass'n v. FERC, 888 F.2d 136 (D.C.Cir.1989) ("AGA" ). The orders before us implement the take-or-pay cost passthrough mechanism of Order No. 500. A host of natural gas pipeline companies, pipeline customers, local distribution companies ("LDCs"), industry associations, and state public service commissions petition for review.
Certain pipelines, customers, and LDCs argue that the Commission's "purchase deficiency" allocation mechanism is unlawful because it violates the filed rate doctrine. We agree and therefore set aside the orders. As a result, disposition of most of petitioners' other claims is not essential to relieving them of burdens they claim are illegal. Nevertheless, because the Commission will undoubtedly attempt to revamp its passthrough policy in light of this decision, we will address a number of subsidiary issues which appear virtually certain to arise under any passthrough scheme.
We recently summarized the genesis of the orders presented to us for review:
The Federal Energy Regulatory Commission embarked in the early 1980s...
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