Federal Power Commission v. United Gas Pipe Line Company (393 U.S. 71)

United States Supreme Court

393 U.S. 71

Federal Power Commission  v.  United Gas Pipe Line Co.

On Petition for Writ of Certiorari to the United States Court of Appeals for the Fifth Circuit

No. 247.  Argued: N/A --- Decided: October 21, 1968^[1]

This Court previously sustained the formula of the Federal Power Commission (FPC) for determining the tax component of respondent's cost of service but remanded the cases (386 U.S. 237) with respect to whether it was significant in applying the formula that respondent had both jurisdictional and nonjurisdictional income. The Court of Appeals held that the issue had been sufficiently raised by respondent's petition for rehearing before the FPC and that the formula required that consolidated tax savings be first allocated to respondent's nonjurisdictional income.

Held: Since the FPC did not disclose the basis for its order and did not "give clear indication that it has exercised the discretion with which Congress has empowered it," Phelps Dodge Corp. v. NLRB, 313 U.S. 177, 197, the cases were not in the proper posture for judicial review and should have been remanded to the FPC for further consideration.

Certiorari granted; 388 F.2d 385, reversed and remanded.

Solicitor General Griswold, Harris Weinstein, Richard A. Solomon, and Peter H. Schiff for petitioner in No. 247. Reuben Goldberg and George E. Morrow for petitioner in No. 248.

David T. Searls and Vernon W. Woods for respondent in both cases.

PER CURIAM.

Notes

1. Together with No. 248, Memphis Light, Gas & Water Division v. United Gas Pipe Line Co., also on petition for writ of certiorari to the same court.