Supreme Court of the United States
Atlantic Refining Co. v. Public Service Commission of New York
June 22, 1959360 U.S. 378
Summary
The Supreme Court affirmed the Court of Appeals, holding that the Federal Power Commission has jurisdiction under §7(e) of the Natural Gas Act to consider price‑related conditions on certificates and that its order granting unconditional certificates was unsupported by sufficient evidence, constituting an abuse of discretion. The Court also affirmed that the Commission may condition certificates without making a rate determination. Justice Harlan, concurring, emphasized the lack of evidentiary support for the Commission’s findings.
Holding
- Does the Federal Power Commission have jurisdiction under §7(e) of the Natural Gas Act to consider a limited proposal that conditions certification on price?. The Commission possesses jurisdiction; the petitioners’ refusal of a conditional price does not divest the Commission of its authority.
- Must the Commission’s decision to issue a permanent certificate be supported by substantial evidence of public convenience and necessity, including price considerations?. The Commission’s order granting unconditional certificates was not supported by sufficient evidence and constituted an abuse of discretion.
- May the Commission condition a certificate on price without making a rate determination, consistent with its authority under §7(e)?. Yes; the Commission may attach reasonable conditions to a certificate to protect the public interest without deciding rates.
- What standard of review applies to the Commission’s exercise of discretion in issuing certificates under §7(e)?. The Commission’s actions are reviewed for abuse of discretion, requiring substantial evidence of public convenience and necessity.
Docket 518
Cited authorities
- 52 Stat. 821
- 56 Stat. 84
- 15 U.S.C. § 717
- 67 Stat. 462
- 52 Stat. 825
- 56 Stat. 83