Supreme Court of the United States
Federal Power Commission v. Sierra Pacific Power Co.
February 27, 1956350 U.S. 348
Summary
The Court held that PG&E’s unilateral filing of a new rate and the Commission’s approval under §205 did not alter its existing contract with Sierra, and that the Commission’s power under §206(a) is limited to protecting the public interest, not merely correcting a contract that yields a lower return; the case was affirmed and remanded for further proceedings.
Holding
- Whether PG&E’s unilateral filing of a new rate and the Commission’s approval under §205(d) and (e) supersede the existing contract with Sierra Pacific Power.. No; a unilateral filing under §205(d) and the Commission’s approval under §205(e) do not alter the parties’ contract.
- Whether the Commission may, under §206(a), find the contract rate unreasonable and prescribe a new rate, and what standard governs that power.. The Commission’s finding that a contract rate is unreasonable solely because it yields less than a fair return is erroneous; the Commission may act only if the rate adversely affects the public interest, and the case is remanded for further proceedings consistent with that limitation.
Docket NO. 51
Cited authorities
- 49 Stat. 847
- 16 U.S.C. § 824
- 49 Stat. 851
- 49 Stat. 852
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