# Petition — Public Service Commission v. Washington Gas Light Co.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition
- **Published:** January 1, 1983
- **Citation:** 462 U.S. 1107

## Text

8 y ba 1 6 5 S Oftice-Supreme Court, U.S.

FILED
No. apR Ll 1983

ALEXANDER L. STEVAS,

CLERK

IN THE

Supreme Court of the United States
OCTOBER TERM, 1982

PUBI.IC SERVICE COMMISSION

OF THE DISTRICT OF COLUMBIA,
Petitioner,

Vs

WASHINGTON GAS LIGHT COMPANY,
Respondent.

PETITION FOR A WRIT OF CERTIORARI
TO THE DISTRICT OF COLUMBIA
COURT OF APPEALS

Lloyd N. Moore, Jr.
Counsel of Record

for Petitioner
Public Service Commission
of the District of Columbia
451 Indiana Avenue, N.W.
Washington, D.C. 20001
Tel. (202) 727-3050

Of Counsel:
Michael E. Geltner
Michael d. Newsoin

THE CASILLAS PRESS. INC — 1717 K Street NW — Washington, D.C. — 223-1220

QUESTION PRESENTED

Whether the Federal Energy Regulatory Commission
exceeded its jurisdiction under the Natural Gas Act when
it decided to approve the annual budgets of Gas Research
Institute, a research, development and demonstration
organization engaged in research into synthetic gas and
other subjects beyond FERC’s regulatory jurisdiction, and
to authorize the cost of Gas Research Institute’s activities
to be added to the wholesale cost of natural gas, requiring
State and local regulatory Commissions to pass that cost
on to consumers.

*Parties to the proceeding in the District of Columbia Court of Ap-
peals, in addition to the Public Service Commission of the District of
Columbia and Washington Gas Light Company, included the Office
of People’s Counsel of the District of Columbia. Gas Research In-
stitute filed a brief as amicus curiae.

eas

TABLE OF CONTENTS
Page

CRS HO PRESENTED unc cc ccccccccccccncncccccsevens i
TABLE OF AUTHORITIES ............. ccc cece cece ee eens iv
PUPP MEY ccc crccccccescccteccccenvevceesescees ]
PEPE ROUIOE civic ccncuncnscccecceccesccccccncseccuense 2
PNET CIEE VEE cccccccccccccccccesccesccesscaccees 3
STATEMENT OF THE CASE .............6 00 cee ce eens 3
REASONS FOR GRANTING
PP TT rr Tee er err rrr rr rere eye 7
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APPENDIX

Opinion of District of Columbia

Court of Appeals, Entered October 29, 1982 ............5. la

Order of District of Columbia Court

of Appeals Denying Petition for Re-

hearing, Entered January 21, 1983 0.0.0... ceca 26a

Excerpts from Proposed Opinion and Interii

Order of the Commission, Issued October 3,

SE Scie hn io 656544049 44544,04454054840440400044450 048 28a

Excerpts from Final Opinion and Order

of the Commission, Issued November 10,

DS aiaied 6.44.5529.904400544440421054404000 104 84R EES 33a

Excerpts from Order of the Commissicn

Denying Applications for Reconsideratiun,

Issued December 24, 1980 2.0.0.6 cee eee 34a

Natural Gas Act, §§ 2,4, 8, & 16 2.0... ccc cee eee 34a

iv

TABLE OF AUTHORITIES

Case: Page

Davis v. United States,
ee es Ss co ncendenutuasanieeesaaeeeedienes 12

Davis v. United States,
en SE co 2 os G4456 she obs BPE CeEAR AER ERS 12

F.P.C. v. Texaco, Inc.,
el errr PrerT yee) errr ere Tyee 6

Henry v. F.P.C.,
168 U.S. App. D.C. 173, 513 F.2d 395 (1975) ........... 7,10, 11

John Hancock Ins. Co. ». Bartels,
eh, 12

IN THE

Supreme Court of the United States
OCTOBER TERM, 1982

No.

PUBLIC SERVICE COMMISSION
OF THE DISTRICT OF COLUMBIA,
Petitioner,

Vv.

WASHINGTON GAS LIGHT COMPANY,
Respondent.

PETITION FOR A WRIT OF CERTIORARI
TO THE DISTRICT OF COLUMBIA
COURT OF APPEALS

OPINIONS BELOW

The opinion of the District of Columbia Court of Ap-
peals which this petition seeks to have the court review is
officially reported at 452 A.2d 375 (D.C. App. 1982). It is
reproduced in the appendix, starting at la.

The orders of the Public Service Commission of the
District of Columbia are reported at 39 PUR 4th 161
(D.C.P.S.C. 1980).' There is no official report. Pursuant

'The Commission first issued a proposed opinion and interim
order. Excerpts are at 28a. Commissioner Long filed a partial concur-
ring and dissenting opinion. The Commission then issued a final opi-
nion and order. Excerpts are at 33a. Finally, the Commission issued
an order denying applications for reconsideration. Excerpts are at
34a.

2

to authorization of the Clerk, ten copies of the orders of
the Public Service Commission of the District of Colum-
bia have been lodged with the Clerk’s Office. Excerpts,
containing all of those portions of the orders relevant to
this petition are reproduced in the appendix, starting at
28a.

JURISDICTION

The Judgment of the District of Columbia Court of Ap-
peals which this petition seeks to have the court review was
entered on October 29, 1982. Petitioner filed a timely peti-
tion for rehearing in the District of Columbia Court of
Appeals which that court denied without opinion on
January 21, 1983. This petition is filed within 90 days of
that date.

This court has jurisdiction to review the judgment of the
District of Columbia Court of Appeals by writ of cer-
tiorari pursuant to 28 U.S.C. § 1257(3).

STATUTES
Natural Gas Act §§ 2, 4, 8 and 16.?

STATEMENT OF THE CASE

On June 29, 1979, Respondent Washington Gas Light
Company (“Washington Gas”) filed a rate increase ap-
plication which led to proceedings before Petitioner Public
Service Commission of the District of Columbia (“the
Commission”). The proceedings were designated Formal
Case No. 722. One of the issues which the Commission
had to address in Formal Case No. 722 was whether it was

*See Appendix, pp. 34a-4la.

3

required to permit Washington Gas to treat Washington
Gas’ costs for its allocable share of the budget of Gas
Research Institute (“GRI”) as an operating expense.

GRI is a research, development and demonstration
organization whose members consist of wholesale and
retail gas companies, including Washington Gas and its
wholesale suppliers, Columbia Gas and Transco (“the
pipelines”). GRI engages in research into a variety of gas
related issues, much of it involving synthetic gas. The
Federal Energy Regulatory Commission (“FERC”) is
authorized to regulate the wholesale price of natural gas
under § 4 of the Natural Gas Act. Although FERC has no
Statutory authority to supervise or regulate research
organizations, FERC decided to assume jurisdiction to ap-
prove GRIs’ budgets and to authorize GRI to impose
charges upon its members. Under this scheme, FERC
authorized the member pipelines to include their GRI
assessments in the wholesale price of natural gas to
retailers, such as Washington Gas.

In Formal Case No. 722, the Commission decided to use
the calendar year ending December 31, 1979 as its test
year.» The Commission was then faced with deciding
whether it was obliged by FERC preemption to permit
Washington Gas to recover its GRI surcharges as
operating expenses* without independently reviewing the
reasonableness of those charges, as it must for all other
such expenses.

>Under District of Columbia law, the Commission engages in tradi-
tional test year ratemaking in which it examines the rate base, rate of
return and expenses on the basis of a particular year’s data and, if that
year’s data warrants it, authorizes a prospective change in public utili-
ty rates. See Potomac Electric Power Co. v. Public Service Commis-
sion, 402 A.2d 14 (D.C. App.), cert denied, 444 U.S. 926 (1979).

‘During the test year, the GRI surcharge from the pipelines to
Washington Gas was .047 center per therm.

—_— es

4

Washington Gas contended that FERC’s action in
regulating GRI and authorizing GRI’s expenses to be add-
ed as a surcharge to the wholesale cost of natural gas com-
pletely preempted state and local regulatory commissions
from independently inquiring for retail ratemaking pur-
poses into the reasonableness of Washington Gas’ GRI
payments. People’s Counsel, a statutory party to Commis-
sion proceedings, contended that the Commission retained
authority, despite FERC’s approval of the surcharge, to
determine whether Washington Gas’ GRI expense was
beneficial to District of Columbia ratepayers and, if the
Commission determined that it was not, to refuse to per-
mit Washington Gas to treat the surcharge as an operating
expense for ratemaking purposes.

On October 3, 1980, the Commission issued its Propos-
ed Opinion and Interim Order in Formal Case No. 722.
(Excerpted at 28a) Having heard evidence on GRI’s pro-
gram, the Commission concluded that the benefits to the
immediate consumer were “indirect at best” and will be
substantially less to residential consumers than to in-
dustrial and commercial customers and to gas utility com-
panies in general. (3la-32a) Although the Commission
found that Washington Gas’ stockholders stood to receive
a substantially greater benefit from GRI than _ its
customers, the Commission decided to allow Washington
Gas’ test year GRI charge as an operating expense because
the amount was small and because there was some promise
of benefit to consumers.‘

*The order noted that the Commission was aware that FERC’s Opi-
nion No. 64, which reviewed GRI, was under review on the preemp-
tion issue in Public Utilities Commission of Colorado v. FERC, 213
U.S. App. D.C. 1, 660 F.2d 821 (1981), cert denied, 456 U.S.__, 102
S.Ct. 2009 (1982), which was at that time still undecided.

5

Washington Gas filed exceptions to the Commission’s
proposed opinion. It noted that its GRI surcharge had
been raised by an increase in the per therm rate, effective
January 1, 1981, and sought to have the Commission
reflect that change in its authorized retail rates. In its Final
Opinion and Order, filed November 10, 1980, the Com-
mission denied Washington Gas’ exception. The Commis-
sion declined to approve the post-test year per term in-
crease, because, “although approved by FERC, [it] has
not been shown to be justified on a record before this
Commission.” (33a)

Washington Gas pressed the same issue by application
for reconsideration, and, in an order entered December
24, 1980, the Commission ruled that, since Public Utilities
Commission of Colorado v. FERC, supra, was still pen-
ding, the post-test year increase lacked the certainty
necessary to require rate order adjustment. (34a)

On appeal to the District of Columbia Court of Ap-
peals, Washington Gas raised the issue of Commission
authority to deny automatic pass through of its GRI per
therm surcharge, contending that the Commission was
wholly preempted by FERC’s assumption of jurisdiction
over GRI. People’s Counsel intervened in the appeal and
argued that, despite FERC approval, the Commission re-
tained authority to review GRI’s potential benefit to
ratepayers before approving expense treatment of the GRI
surcharge. The Commission’s position was that, until the
District of Columbia Circuit finally decided the Colorado
case, the GRI surcharge lacked the certainty to justify
post-test year rate adjustment. Its contention was that,
while it could not reexamine the appropriateness of a
FERC — approved wholesale rate surcharge, it was not
obliged to authorize the retail utility to pass through such

6

a surcharge if FERC’s approval of it was ultra vires, the
point in issue in the Colorado case.

While this case was pending before the District of Col-
umbia Court of Appeals, the District of Columbia Circuit
decided the Colorado case, affirming FERC’s authority to
regulate GRI. Public Utilities Commission of Colorado v.
FERC, 213 U.S. App. D.C. 1, 660 F.2d 821 (1981). The
Public Utilities Commission of Colorado bypassed sug-
gesting rehearing en banc and sought review here.® On
April 26, 1982, this court denied certiorari. 456 U.S.__.,
102 S.Ct. 2009.

The Commission then was granted leave to file a sup-
plemental memorandum in the District of Columbia Court
of Appeals. The Commission requested the court to sus-
tain its denial to Washington Gas of the post-test year ad-
justment on the alternative ground that, since FERC lack-
ed authority to regulate GRI, the Commission was obliged
to review Washington Gas’ payments for GRI expenses
before approving rate treatment. Noting that this court
had denied Colorado’s petition, the Commission contend-
ed that the District of Columbia Court of Appeals had
authority to independently examine the issue of FERC
jurisdiction and that it should do so, since such action
would create the conflict which this court might see as
necessary to grant review.’ The Commission then argued

*The Commission and several state regulatory commissions filed
briefs as amici curiae urging the court to accept the Colorado Case.

‘Appellate review of FERC decisions can be sought in the District
of Columbia Circuit or the circuit in which the natural gas company
has its principal place of business. See F.P.C. v. Texaco, Inc., 377
U.S. 33 (1954); 15 U.S.C. § 717r(b). Since GRI is not a natural gas
company, the practical effect of the law is to limit review to the
District of Columbia Circuit.

7

to the court of appeals that, since a large part of GRI’s ac-
tivities involved research into synthetic gas* or subjects far
removed from natural gas and Congress had specifically
denied FERC authority to regulate synthetic fuels,’ FERC
exceeded its authority when it undertook to regulate GRI
and authorize rate treatment of its budget.

In an opinion filed October 29, 1982, the District of
Columbia Court of Appeals held that the Commission had
no authority to inquire into the reasonableness of the GRI
surcharge. (20a) The court declined the Commission’s re-
quest to hold that FERC had exceeded its jurisdiction,
because “[rjeview of the rulings of FERC is vested by
statute in the United States Court of Appeals, not this
court.”'" (21a) The Commission’s timely application for
rehearing was denied January 21, 1983. (26a)

REASONS FOR GRANTING THE WRIT

It is important that the integrity of basic regulatory
systems be maintained in the face of overreaching by
FERC, that the careful balance which Congress ordained
between federal and state regulation of interstate natural
gas sales be defended.

The court below, however, squarely held that the Com-
mission had no authority to disallow the GRI surcharge as

‘See Public Utilities Commission of Colorado v. FERC, supra, 660
F.2d at 825-826.

*See Office of Consumer's Counsel v. FERC, 210 U.S. App. D.C.
315, 655 F.2d 1132 (1980); Public Service Commission of New York v.
F.P.C., 177 U.S. App. D.C. 245, 543 F.2d 392 (1976); Henry v.
F.P.C., 168 U.S. App. D.C. 137, 513 F.2d 395 (1975).

‘Since the court of appeals concluded that its reversal of the Com-
mission on the GRI issue did not render the entire rate order
unreasonable, it did not remand on that point for modification of the
rate order. (24a-25a)

a reasonable operating expense and that the Commission
was unauthorized to consider whether the GRI surcharge
benefits District of Columbia ratepayers. As a conse-
quence, the court has stripped those ratepayers of any
meaningful protection — heretofore afforded by the D.C.
Commission — from having to bear the cost of programs
that may be of no benefit to them whatsoever.

GRI clearly is not a natural gas company within the
meaning of the Natural Gas Act, for GRI, a research and
development organization, is engaged neither in the trans-
portation of natural gas in interstate commerce nor the
sale of natural gas in interstate commerce for resale.''
Thus no basis exists under the Natural Gas Act for FERC
to regulate or approve GRI surcharges, much less to
obligate state commissions'? to pass those charges through
to consumers without regard to any benefit therefrom for
the local ratepayers.

The problem stems from the rule that, when FERC
authorizes a charge to be placed on wholesale rates,
regulators of retail sales of natural gas must permit the
charges authorized by FERC to be passed on to the retail
ratepayers as part of the cost of purchased gas. See, e.g.,
Narragansett Electric Co. v. Burke, 381 A.2d 1358 (R.1.
1977), cert. den., 435 U.S. 972 (1978). On the other hand,
where FERC does not regulate a charge on wholesale
rates, retail commissions, such as the D.C. Commission,
may determine the reasonableness of the charge before ad-
ding it to the retail rates. Thus, any increase of FERC

''See FERC opinion No. 11 quoted in Public Utilities Comm'n of
Colorado v. FERC, supra, 660 F.2d at 823.

'2While the D.C. Commission is not a “state” regulatory commis-
sion and was created by an Act of Congress, it functions like a state
commission in regulating retail natural gas sales.

9

regulatory jurisdiction decreases the regulatory jurisdic-
tion of state retail commissions; FERC’s usurpation of
authority regarding GRI charges reduces the authority of
State commissions. The decision below graphically il-
lustrates that proposition and shows the harm that accor-
dingly befalls retail ratepayers. Because of this harm, the
direct result of overreaching by FERC, a writ of certiorari
should issue to review the decision below.

It is important that courts and agencies maintain the in-
tegrity of basic regulatory systems mandated by Congress.
That integrity is destroyed when loose and casual scrutiny
by FERC of the potential benefit to ratepayers of GRI
charges is substituted for the close scrutiny of the D.C.
Commission.

It is also important that the integrity of basic regulatory
systems created by Congress not fall prey to actions that
run directly counter to the will of Congress.

Much of research and development work proposed to be
undertaken by GRI involves something other than natural
gas as such. See Public Utilities Commission of Colorado
v. FERC, supra, 660 F.2d 821, 825 n.9. While it might be
desirable for FERC to administer — and raise money for
— a varied research program in the name of conservation
of dwindling gas supplies, the fact remains that Congress
has denied FERC such authority. The decision below con-
flicts with that decision of Congress.

Synthetic fuels provide the most obvious example of
how overreaching by FERC given legal sanction by the
decision below violates Congressional intent. Several of
GRI’s research areas concern synthetic fuels. Congress,
however, has legislated on this subject, creating, in-
ter alia, the Synthetic Fuels Corporation, 42 U.S.C.

10

§§ 8701 ef seq.'* Under the Act, the corporation may pro-
vide financial assistance of various types to research and
development projects in an amount of up to $88 billion.
See, e.g., 42 U.S.C. §§ 8772(c)(11), 8751. That munificent
sum of money does not, however, come from gas
ratepayers as such. Congress has determined that financial
support for synthetic fuels development should come from
sources other than ratepayers. Nothing in the Act refers to
FERC or to ratepayers. FERC approval of GRI charges
for synthetic fuels research conflicts with Congressional
intentions. '°

It is important that the decisional law in this area be
both internally consistent and supportive of basic
regulatory systems. The decision below, treats the Col-
orado decision as controlling. The latter decision is,
however, directly inconsistent with Henry v. F.P.C., 168
U.S. App. D.C. 137 513 F.2d 395 (1975) and Office of
Consumers’ Counsel v. FERC, 210 U.S. App. D.C. 315,
655 F.2d 1132 (1980).

In Henry, supra, three applications were filed before
FERC pursuant to § 7(c) of the Natural Gas Act'® for cer-
tificates of public convenience and necessity. The facilities
involved included plant for the manufacture and transpor-
tation of synthetic gas and plant for the mixing of syn-
thetic and natural gas. The court, affirming the FPC, held
that the FPC had no jurisdiction over plant devoted to the

'*This legislation is part of the Energy Security Act of 1980, P.L.
96-294.

'*The Energy Security Act of 1980 includes other titles concerning,
inter alia, biomass energy and alcohol feels, renewable energy in-
itiatives, solar energy and energy conservation, and geothermal reser-
voirs. In none of these areas does it appear that Congress meant for
FERC to saddle ratepayers with research costs.

'S15 U.S.C.A. § 717f(c).

11

production or transportation of synthetic gas prior to its
mixture with natural gas from wells.

In Office of Consumers’ Counsel, supra, a consortium
of natural gas companies sought a § 7(c) certificate for a
coal gasification plant and a pipeline to transport the syn-
thetic gas to a point where it would be commingled with
natural gas and sold. FERC granted the application. On
appeal the District of Columbia Circuit reversed, holding
on the basis of Henry that FERC had no regulatory
jurisdiction over any aspect of synthetic gas production or
development prior to its commingling with natural gas.
FERC had argued that its action merely authorized future
sales of commingled gas. The court rejected the argument,
finding that the proposal at issue was in fact a financing
device rather than a gas supply project, that the
hypothetical sale of commingled gas was remote in time,
place and even probability, and that FERC would regulate
the plant during the construction and preoperation period,
a time during which, of course, there would be no syn-
thetic gas from the plant to commingle with natural gas.

It is entirely clear, in light of Henry and Office of Con-
sumers’ Counsel, that FERC has no regulatory jurisdiction
of synthetic gas plant. And yet the court below implements
the Colorado decision, to the effect that FERC can never-
theless regulate and guarantee rate treatment of synthetic
fuel research development and demonstration and for
research into appliance, performance and technology,
even though few of the GRI’s research activities cited in
the FERC opinions independently fall under FERC
jurisdiction and even though none of them are any more
closely related to a jurisdictional event — the transporta-
tion or sale for resale of natural gas — than was the plant
at issue in Office of Consumers’ Counsel.

12

The court below held that review of FERC actions was
vested only in the United States Court of Appeals. If it is
correct, it underscores the need for this court to consider
the merits of this case; neither state supreme courts nor
other circuits would have authority to decide the issue of
FERC authority differently from the District of Columbia
Circuit. Consequently only that court and this one can set
matters right. Sinc. the District of Columbia Circuit has
not done so, only this court can. It is important that the
writ of certiorari should issue for this purpose.

The decision of the court of appeals in Public Utilities
Commission of Colorado v. FERC, supra, is in conflict
with the same court’s earlier opinion in Office of Con-
sumer’s Counsel v. FERC, 210 U.S. App. D.C. 315, 655
F.2d 1132 (1980). While there has been some expression
that an intracircuit conflict is for the court of appeals itself
to resolve through its en banc procedure, '* the existence of
such a conflict must be weighted with other factors in
deciding whether to grant certiorari. For example, the
combination of an intracircuit conflict with an important
question does justify the issuance of a writ of certiorari.
See John Hancock Ins. Co. v. Bartels, 308 U.S. 180, 181
(1939). See also Scott v. United States, 436 U.S. 128
(1978), in which the combination of conflicting views
among the judges of the District of Columbia Circuit and
the importance of the question led this court to grant cer-
tiorari where it had earlier denied the writ to the same issue
presented on interlocutory review. In addition, where the
area of the law is a specialized one and the problems have

'In Davis v. United States, 405 U.S. 933 (1972), the court denied
certiorari when the solicitor general so argued. See Davis v. United °
States, 417 U.S. 333, 340 (1974). Davis, however, was a criminal case
in which the litigant could and did present the issue again in a col-
lateral proceeding. That is not the case here.

13

arisen and will continue to arise within one circuit,'” it is
most appropriate for this court to exercise its discretion to
intervene and resolve the conflict. See Maggio v. Zeitz,
333 U.S. 56, 59-60 (1948). The latter category applies par-
ticularly to this case and the court from which it comes.
See note 7, supra.

CONCLUSION

The court should issue a writ of certiorari to review the
issue of FERC regulatory authority.

Respectfully submitted,

/§/.
Lloyd N. Moore, Jr.
Counsel of Record

for Petitioner
Public Service Commission
of the District of Columbia
451 Indiana Avenue, N.W.
Washington, D.C. 20001
Tel: (202) 727-3050

Of Counsel:
Michael E. Geltner
Michael d. Newsom

'’In this instance, while the decision in Public Utilities Commission
of Colorado, supra, was written for the District of Columbia Circuit,
it was authorized by a visiting district judge.

APPENDICES

Opinion of District of Columbia

Court of Appeals, Entered October 29, 1982 .........

Order of District of Columbia Court
of Appeals Denying Petition for Re-

hearing, Entered January 21,1983 .................

Excerpts from Proposed Opinion and Interim
Order of the Commission, Issued October 3,

EERE ES Aig cee is AS a ae

39a

counts, records of cost-accounting procedures,
correspondence, memoranda, papers, books,
and other records as the Commission may by
rules and regulations prescribe as necessary or
appropriate for purposes of the administration
of this chapter: Provided, however, That nothing
in this chapter shall relieve any such natural-gas
company from keeping any accounts, memoran-
da, or records which such natural-gas company
may be required to keep by or under authority of
the laws of any State. The Commission may
prescribe a system of accounts to be kept by such
natural-gas companies, and may classify such
natural-gas companies and prescribe a system of
accounts for each class. The Commission, after
notice and opportunity for hearing, may deter-
mine by order the accounts in which particular
outlays or receipts shall be entered, charged, or
credited. The burden of proof to justify every ac-
counting entry questioned by the Commission
shall be on the person making, authorizing, or
requiring such entry, and the Commission may
suspend a charge or credit pending submission of
satisfactory proof in support thereof.

(b) The Commission shall at all times have ac-
cess to and the right to inspect and examine all
accounts, records, and memoranda of natural-
gas companies; and it shall be the duty of such
natural-gas companies to furnish to the Commis-
sion, within such reasonable time as the Commis-
sion may order, any information with respect
thereto which the Commission may by order re-
quire, including copies of maps, contracts,
reports of engineers, and other data, records,
and papers, and to grant to all agents of the
Commission free access to its property and its ac-

40a

counts, records, and memoranda when requested
so to do. No member, officer, or employee of the
Commission shall divulge any fact or informa-
tion which may come to his knowledge during
the course of examination of books, records,
data, or accounts, except insofar as he may be
directed by the Commission or by a court.

(c) The books, accounts, memoranda, and
records of any person who controls directly or in-
directly a natural-gas company subject to the
jurisdiction of the Commission and of any other
company controlled by such person, insofar as
they relate to transactions with or the business of
such natural-gas company, shall be subject to ex-
amination on the order of the Commission.

Natural Gas Act § 16, 15 U.S.C. § 717(c). Administrative
powers of Commission; rules, regulations, and orders

The Commission shall have power to perform
any and all acts, and to prescribe, issue, make,
amend, and rescind such orders, rules, and
regulations as it may find necessary or ap-
propriate to carry out the provisions of this
chapter. Among other things, such rules and
regulations may define accounting, technical,
and trade terms used in this chapter; and may
prescribe the form or forms of all statements,
declarations, applications, and reports to be filed
with the Commission, the information which
they shall contain, and the time within which
they shall be filed. Unless a different date is
specified therein, rules and regulations of the
Commission shall be effective thirty days after
publication in the manner which the Commission
Shall prescribe. Orders of the Commission shall
be effective on the date and in the manner which

4la

the Commission shall prescribe. For the purposes
of its rules and regulations, the Commission may
classify persons and matters within its jurisdic-
tion and prescribe different requirements for dif-
ferent requirements for different classes of per-
sons or matters. All rules and regulations of the
Commission shall be filed with its secretary and
shall be kept open in convenient form for public
inspection and examination during reasonable
business hours.

---

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