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TENNESSEE GAS PIPELINE CO. v. F.E.R.C.

Nos. 87-1368, 87-1374 and 88-1075.

871 F.2d 1099 (1989)

TENNESSEE GAS PIPELINE COMPANY, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Orange and Rockland Utilities, Inc., The Berkshire Gas Co., et al., The Peoples Gas Light & Coke Co., National Fuel Gas Supply Corporation, Columbia Gas Distribution Companies, The Tennessee Small General Service Customer Group, Northern Illinois Gas Co., Pennsylvania Gas and Water Co., Consolidated Gas Transmission Corp., The Inland Gas Co., Inc., The Cities of Clarksville, et al. Alabama-Tennessee Natural Gas Co., Consolidated Edison Company of New York, Inc., Shell Offshore Inc., et al., Long Island Lighting Co., Process Gas Consumers Group, Conoco Inc., Columbia Gas Transmission Corporation, Texaco, Inc., Equitable Gas Co., Intervenors. COLUMBIA GAS TRANSMISSION CORPORATION, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Orange and Rockland Utilities, Inc., The Berkshire Gas Co., et al., The Public Service Commission of the State of New York, Tennessee Gas Pipeline Co., Columbia Gas Distribution Companies, National Fuel Gas Supply Corporation, The Tennessee Small General Service Customer Group, Northern Illinois Gas Co., Pennsylvania Gas and Water Co., The Inland Gas Co., Inc., The Cities of Clarksville, et al., Texaco Inc., Alabama-Tennessee Natural Gas Co., Conoco Inc., Shell Offshore Inc., et al., Consolidated Gas Transmission Corp., Union Oil Co. of California, Intervenors. TENNESSEE GAS PIPELINE COMPANY, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Orange and Rockland Utilities, Inc., The Berkshire Gas Co., et al., The Public Service Electric and Gas Co., The Peoples Gas Light and Coke Co., Equitable Gas Company, Long Island Lighting Company, Consolidated Edison Company of New York, Inc., Process Gas Consumers Group, Intervenors.

United States Court of Appeals, District of Columbia Circuit.

Decided March 10, 1989.

Attorney(s) appearing for the Case

Ronald N. Carroll, with whom Giles D.H. Snyder and Stephen J. Small, Charleston, W.Va., were on the brief, for Columbia Gas Transmission Corp., petitioner in No. 87-1374 and intervenor in No. 87-1368.

Robert H. Benna, with whom Terence J. Collins, Washington, D.C., Margaret L. Bollinger, Houston, Tex., Harold L. Talisman and David D. Withnell, Washington, D.C., were on the brief, for Tennessee Gas Pipeline Co., petitioner in Nos. 87-1368, 88-1075 and intervenor in No. 87-1374.

Stanley M. Morley, Washington, D.C., for intervenor, Alabama-Tennessee Natural Gas Co., in Nos. 87-1368, 87-1374.

Dale A. Wright, Washington, D.C., also entered an appearance for petitioner in Nos. 87-1368, 88-1075.

Michael E. Small, Washington, D.C., also entered an appearance for petitioner in No. 87-1368.

Kenneth M. Ende, Atty., F.E.R.C., with whom Catherine C. Cook, Gen. Counsel, F.E.R.C., and Joseph S. Davies, Deputy Sol., F.E.R.C., Washington, D.C., were on the brief for respondent in Nos. 87-1368, 87-1374, 88-1075.

Dwight Alpern, Washington, D.C., also entered an appearance for respondent in Nos. 87-1368, 87-1374, 88-1075.

Jerome M. Feit, Washington, D.C., also entered an appearance for respondent in No. 88-1075.

Richard A. Solomon, New York City, and David D'Allesandro entered appearances for intervenor, The Public Service Com'n of the State of New York, in Nos. 87-1368 and 87-1374.

Harry H. Voigt and Mindy A. Buren, Washington, D.C., entered appearances for intervenor, Orange and Rockland Utilities, Inc., in Nos. 87-1368, 87-1374, 88-1075.

John W. Glendening, Jr. and Bruce B. Glendening, Washington, D.C., entered appearances for intervenor, The Berkshire Gas Co., et al., in Nos. 87-1368, 87-1374, 88-1075.

Thomas M. Patrick, Chicago, Ill., and Karen Lee entered appearances for intervenor, The Peoples Gas Light and Coke Co., in Nos. 87-1368, 88-1075.

George L. Weber, Washington, D.C., entered an appearance for intervenor, National Fuel Gas Supply Corporation, in Nos. 87-1368, 87-1374.

John L. Shailer and Roger C. Post, Columbus, Ohio, entered appearances for intervenor, Columbia Gas Distribution Companies, in Nos. 87-1368, 87-1374.

Michael J. Manning, James F. Moriarty and James P. White, Washington, D.C., entered appearances for intervenor, The Tennessee Small General Service Customer Group, in Nos. 87-1368, 87-1374.

David I. Bloom, Andrew J. Pincus, Washington, D.C., and Wendell H. Adair, Jr., Chicago, Ill., entered appearances for intervenor, Northern Illinois Gas Co., in Nos. 87-1368, 87-1374.

Glenn W. Letham and Kenneth M. Albert, Washington, D.C., entered appearances for intervenor, Pennsylvania Gas and Water Co. in Nos. 87-1368, 87-1374.

Mark G. Magnuson, Washington, D.C., entered an appearance for intervenor, Consolidated Gas Transmission Corp., in No. 87-1368.

L. Michael Bridges, Wilmington, Del., entered an appearance for intervenor, The Inland Gas Co., Inc., in Nos. 87-1368, 87-1374.

James R. Choukas-Bradley, Washington, D.C., entered an appearance for intervenor, The City of Clarksville, et al., in Nos. 87-1368, 87-1374.

Paul W. Diehl, Springfield, Va., entered an appearance for intervenor, Alabama-Tennessee Natural Gas Co., in Nos. 87-1368, 87-1374.

William I. Harkaway, Harvey L. Reiter, Washington, D.C., and Barbara M. Gunther, New York City, entered appearances for intervenor, Consolidated Edison Co. of New York, Inc., in Nos. 87-1368, 88-1075.

Thomas G. Johnson, Houston, Tex., entered an appearance for intervenor, Shell Offshore Inc., et al., in Nos. 87-1368, 87-1374.

James J. Stoker, III, Arnold H. Quint and James F. Bowe, Jr., Washington, D.C., entered appearances for intervenor, Long Island Lighting Co., in Nos. 87-1368, 88-1075.

Edward J. Grenier, Jr., William H. Penniman and James M. Bushee, Washington, D.C., entered appearances for intervenor, Process Gas Consumers Group, in Nos. 87-1368, 88-1075.

Carolyn S. Hazel, Houston, Tex., J. Paul Douglas and George C. Garikes entered appearances for intervenor, Conoco Inc., in Nos. 87-1368, 87-1374.

Mickey Jo Lawrence entered an appearance for intervenor, Texaco Inc., in No. 87-1374.

Albert Sylvia, III, Los Angeles, Cal., entered an appearance for intervenor, Union Oil Co. of California, in No. 87-1374.

James R. Lacey, Newark, N.J., entered an appearance for intervenor, Public Service Elec. and Gas Co., in No. 88-1075.

Gary E. Guy, Arlington, Va., entered an appearance for intervenor, Equitable Gas Co., in No. 88-1075.

Before WALD, Chief Judge, and MIKVA and SENTELLE, Circuit Judges.

Opinion for the court filed by Chief Judge WALD.

WALD, Chief Judge:

As part of its efforts to increase competition in the natural gas market, the Federal Energy Regulatory Commission ("FERC" or "Commission") has made it increasingly difficult for pipelines to maintain minimum bill provisions in their tariffs. A minimum bill requires a pipeline's customer to pay some of the charges for a percentage of the gas reserved, whether or not the customer actually purchases...

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