PUBLIC UTILITIES COM'N OF STATE OF CAL. v. F.E.R.C.

Nos. 86-1078, 86-1158, 86-1172 and 86-1210.

817 F.2d 858 (1987)

PUBLIC UTILITIES COMMISSION OF the STATE OF CALIFORNIA, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Southern California Gas Company, Pacific Gas & Electric Company, Southwest Gas Corporation, City of Mesa, Arizona, El Paso Natural Gas Company, Fina Oil and Chemical Company, Transwestern Pipeline Company, Phelps Dodge Corp., Salt River Project Agricultural Improvement and Power District, Intervenors. ASARCO, INC., et al., Petitioners, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Salt River Project Agricultural Improvement and Power District, Phelps Dodge Corp., Public Utilities Commission of the State of California, City of Mesa, Arizona, Southwest Gas Corporation, El Paso Natural Gas Company, Pacific Gas & Electric Company, Fina Oil and Chemical Company, Arizona Public Service Company, Intervenors. EL PASO NATURAL GAS COMPANY, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Public Utilities Commission of the State of California, Southern California Gas Company, Arizona Public Service Company, Pacific Gas & Electric Company, Southwest Gas Corporation, Transwestern Pipeline Company, City of Mesa, Arizona, Phelps Dodge Corp., Salt River Project Agricultural Improvement and Power District, Intervenors. FINA OIL AND CHEMICAL COMPANY, et al., Petitioners, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Salt River Project Agricultural Improvement and Power District, Phelps Dodge Corp., Public Utilities Commission of the State of California, City of Mesa, Arizona, El Paso Natural Gas Company, Pacific Gas & Electric Company, Intervenors.

United States Court of Appeals, District of Columbia Circuit.

Decided May 1, 1987.


Attorney(s) appearing for the Case

Harvey Y. Morris, with whom J. Calvin Simpson, Nicholas W. Fels and David N. Heap were on the joint brief for Public Utilities Com'n of the State of Cal. and ASARCO, Inc., et al. petitioners in Nos. 86-1078 and 86-1158. Steven F. Greenwald, Robert B. McLennan, Douglas Kent Porter, Barbara S. Jost, Joel L. Greene, Stanley W. Balis, Susan N. Kelly and Kathleen A. McKee were on the joint brief for Public Utilities Commission of the State of Cal., et al., intervenors in Nos. 86-1158, 86-1172 and 86-1210.

Richard C. Green, with whom Donald J. MacIver, Jr., Richard Owen Baisch and Scott D. Fobes were on the brief for El Paso Natural Gas Co., petitioner in No. 86-1172 and intervenor in Nos. 86-1078, 86-1158 and 86-1210.

Steven R. Hunsicker, with whom Gordon Gooch, Charles M. Darling, IV and John W. Leslie were on the brief for Fina Oil and Chemical Co., et al., petitioners in No. 86-1210 and intervenors in Nos. 86-1078 and 86-1158.

Joanne Leveque, Attorney, F.E.R.C., with whom Barbara J. Weller, Deputy Solicitor, F.E.R.C. was on the brief for respondent.

Howard V. Golub entered an appearance for intervenor, Pacific Gas & Elec. Co. in Nos. 86-1078, 86-1158, 86-1172 and 86-1210.

William I. Harkaway and Steven J. Kalish entered appearances for intervenor, Southwest Gas Corp. in Nos. 86-1158 and 86-1172.

Richard H. Silverman, Phoenix, Ariz., entered an appearance for intervenor, Salt River Project Agr. Improvement and Power Dist. in Nos. 86-1078, 86-1158, 86-1172 and 86-1210.

Herbert I. Zinn and Tamara L. Huddleston, Phoenix, Ariz., entered appearances for intervenor, Arizona Public Service Co. in Nos. 86-1158 and 86-1172.

Adele S. Buchman, Houston, Tex., entered an appearance for intervenor, Transwestern Pipeline Co. in Nos. 86-1078 and 86-1172.

Before WALD, Chief Judge, EDWARDS and STARR, Circuit Judges.


Opinion for the Court filed by Circuit Judge STARR.

STARR, Circuit Judge:

This case comes to us in the wake of Congress' restructuring of the pricing system for natural gas. Two questions are presented: the first concerns the proper disposition of funds remaining in a pipeline producer's deferred tax reserves following a change in pricing structure; the second relates to the availability of a certain price category, the replacement contract price, for gas...

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