Federal Power Commission v. Hope Natural Gas Co. — Reed, J., Dissenting

Summary

Justice Reed dissents, arguing that the Natural Gas Act’s “just and reasonable” standard requires the Federal Power Commission to consider all legitimate capital investments, including those previously recovered in the unregulated period, and that the rate‑making method must be tied to fair value rather than merely the result. He would affirm the circuit court’s remand and direct the Commission to include the disallowed capital costs in its rate base. The majority affirmed the Commission’s order, but Reed warns that the Court’s focus on the outcome rather than the method undermines statutory and constitutional standards.