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

Nos. 91-1372, 91-1422.

988 F.2d 154 (1993)

PUBLIC UTILITIES COMMISSION OF the STATE OF CALIFORNIA, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, The Kansas Power and Light Company; Pacific Gas and Electric Company; Transwestern Pipeline Company; Southern California Gas Company; Texaco Inc., Texas Gas Marketing Inc., and Texaco Exploration and Production, Inc.; Williams Natural Gas Company, Intervenors. SOUTHERN CALIFORNIA GAS COMPANY, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, The Kansas Power and Light Company; Pacific Gas and Electric Company; the Public Utilities Commission of the State of California; Transwestern Pipeline Company; Williams Natural Gas Company, Intervenors.

United States Court of Appeals, District of Columbia Circuit.

Decided March 19, 1993.

Attorney(s) appearing for the Case

Arocles Aguilar and Michael A. Cartelli, Los Angeles, CA, with whom Edward W. O'Neill, Harvey Y. Morris, San Francisco, CA, and Woodrow D. Smith, Los Angeles, CA, were on the brief, for petitioners.

Joel M. Cockrell, Atty., F.E.R.C., with whom William S. Scherman, Gen. Counsel, Jerome M. Feit, Washington, DC, Sol., and Joseph S. Davies, Bethesda, MD, Deputy Sol., F.E.R.C., were on the brief, for respondent.

William J. Grealis, Washington, DC, for intervenor Transwestern Pipeline Company.

Merek E. Lipson, Patrick G. Golden, and David W. Anderson, San Francisco, CA, were on the brief for intervenor Pacific Gas and Elec. Co.

John P. Beall, Houston, TX, entered an appearance for intervenors Texaco, Inc., Texaco Gas Marketing Inc., and Texaco Exploration and Production Inc.

Douglas O. Waikart, Washington, DC, entered an appearance for intervenor Williams Natural Gas Co.

Michael A. Cartelli and Woodrow D. Smith, Los Angeles, CA, entered an appearance for intervenor Southern California Gas Co.

Before: WALD, RUTH BADER GINSBURG and SILBERMAN, Circuit Judges.

Opinion for the Court filed by Circuit Judge WALD.

WALD, Circuit Judge:

As the Federal Energy Regulatory Commission ("FERC" or "Commission") attempts to make take-or-pay problems a thing of the past, the transition to other systems has presented its own genre of problems. This case illustrates one such problem. In simple terms, FERC issued an order providing two basic ways in which pipelines could (1) recover outstanding take-or-pay costs and (2) bill their...

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