Pacific Natural Gas Co., a Corporation v. Federal Power Commission

Petitioner, Pacific Natural Gas Company, is a distributor in the State of Washington of natural gas which it purchases from Pacific Northwest Pipeline Corporation. 98.6 per cent of its requirements consists of “industrial gas”, that is, gas purchased for resale for industrial use only. The Natural Gas Act provides that all rates and charges by any natural gas company in connection with the transportation or sale of natural gas subject to the jurisdiction of the Federal Power Commission shall be “just and reasonable”; otherwise the charges are declared to be unlawful. 15 U.S.C.A. § 717c(a). Section 717c(c) provides that under such rules and regulations as the Commission may prescribe, any natural gas company shall file schedules showing all rates and charges for any transportation or sale subject to Commission jurisdiction, together with all contracts which in any manner affect or relate to such rates. Section 717c(e) provides that whenever any such new schedule is filed, the Commission shall have authority upon its own initiative to enter upon a hearing concerning the lawfulness of such rates appearing in the schedule.

The Natural Gas Act also provides for important differences…