Supreme Court of the United States

Atlantic Refining Co. v. Public Service Commission of New York

June 22, 1959360 U.S. 378

Summary

The Court affirmed the judgment setting aside the Federal Power Commission's unconditional certificates and directed further proceedings before the Commission. Justice Clark's opinion held that the producers' refusal to accept a lower initial price did not deprive the Commission of jurisdiction. Although certification does not require a full just-and-reasonable-rate hearing, the Commission must scrutinize initial prices, consider all public-interest factors, and protect consumers through appropriate certificate conditions. The record did not support the certificates issued here. Justice Harlan, joined by Justice Frankfurter, concurred solely because the findings concerning urgent supply needs and the threatened loss of gas to interstate commerce lacked evidentiary support; he considered the remaining questions unnecessary to decide.

Holding

  • Commission jurisdiction when producers refuse conditional certificates.. The producers' refusal to accept a lower initial price did not deprive the Commission of jurisdiction to act on their applications.
  • Initial-price scrutiny and certificate conditions under § 7.. A full just-and-reasonable-rate hearing is not a prerequisite to certification, but the Commission must carefully scrutinize initial prices and may impose conditions necessary to protect the public interest pending rate adjudication.
  • Evidentiary support for the unconditional certificates.. The record contained insufficient evidence to support the public-convenience-and-necessity finding required for the permanent certificates.

Docket 518

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