Pacific Gas & Electric Co. v. Railroad Commission

In the case at bar the decree enjoined the Railroad Commission of California from enforcing its order fixing the natural gas rates chargeable by the Pacific Gas & Electric Company upon the ground that the order was void because the company *885 was denied due process of law in the rate-making proceedings before the Commission in which the order was made.

The Commission contends in its application for rehearing that before a decree enjoining the enforcement of its void order can be appropriately entered, a court of equity must determine whether or not previous rates fixed by the Commission for supplying such gas are reasonable or just and can only interfere with the subsequent invalid order if it finds that the rates previously fixed by the Commission are not excessive. In other words, it is contended that in .order for this court to set aside an invalid order of the Commission fixing rates, it must determine whether a previous rate fixing order of the Commission which, in absence of the later invalid order, would still be effective, is also invalid because the rates therein are excessive.

The federal courts acting under the Constitution of the United States have no authority…