Federal Power Commission v. Tennessee Gas Transmission Company (1962)
- Docket
- 48
- Decided
- 1962-01-01
- Category
- General
Summary
Question: Can the Federal Power Commission order a rates reduction and refund without determining how such a reduction would affect costs in different service zones? Conclusion: Yes. Justice Tom C. Clark delivered the opinion of the 9-0 majority. The Court held that it is the company’s responsibility to determine a rate schedule that is “just and reasonable” in order to prevent the Commission from ordering a change. Additionally, since the company cannot expect to be able to recoup the losses it accrues during the five-month suspension period, it should not expect to recoup the losses during the readjustment period either. The Court also held that the Commission acted properly in order to protect consumers from excessive rates and charges, because Tennessee Gas was attempting to collect on an illegally high rate.