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Legislation and Regulation Keyed to Manning, 5th Ed.
Pacific Gas & Electric Co. v. Federal Power Commission
Citation:
506 F.2d 33 (1974)Facts
In response to a nationwide natural gas shortage, the Federal Power Commission issued Order No. 431 in 1971 directing pipeline companies to file curtailment plans for periods of shortage. When pipeline companies submitted a variety of different plans, the FPC issued Order No. 467 in January 1973, entitled “Statement of Policy,” which set forth the Commission’s preferred priority schedule for curtailment based on end use rather than contractual commitments. The order stated that the Commission would follow this schedule unless a particular pipeline company demonstrated that a different plan was more in the public interest. The FPC issued the order without prior notice or opportunity for comment, considering it a general statement of policy exempt from the Administrative Procedure Act’s rulemaking requirements. Petitioners, who were customers of pipeline companies subject to curtailment (particularly electric generating companies assigned a low priority), challenged the order as procedurally defective for failure to comply with the APA, substantively defective for failure to compile an adequate record, and environmentally defective for failure to comply with the National Environmental Policy Act.
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