15 U.S.C. § 717c

Rates and charges

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(a) Just and reasonable rates and charges

All rates and charges made, demanded, or received by any natural-gas company for or in connection with the transportation or sale of natural gas subject to the jurisdiction of the Commission, and all rules and regulations affecting or pertaining to such rates or charges, shall be just and reasonable, and any such rate or charge that is not just and reasonable is declared to be unlawful.

(b) Undue preferences and unreasonable rates and charges prohibited

No natural-gas company shall, with respect to any transportation or sale of natural gas subject to the jurisdiction of the Commission, (1) make or grant any undue preference or advantage to any person or subject any person to any undue prejudice or disadvantage, or (2) maintain any unreasonable difference in rates, charges, service, facilities, or in any other respect, either as between localities or as between classes of service.

Under such rules and regulations as the Commission may prescribe, every natural-gas company shall file with the Commission, within such time (not less than sixty days from June 21, 1938) and in such form as the Commission may designate, and shall keep open in convenient form and place for public inspection, schedules showing all rates and charges for any transportation or sale subject to the jurisdiction of the Commission, and the classifications, practices, and regulations affecting such rates and charges, together with all contracts which in any manner affect or relate to such rates, charges, classifications, and services.

(d) Changes in rates and charges; notice to Commission

Unless the Commission otherwise orders, no change shall be made by any natural-gas company in any such rate, charge, classification, or service, or in any rule, regulation, or contract relating thereto, except after thirty days’ notice to the Commission and to the public. Such notice shall be given by filing with the Commission and keeping open for public inspection new schedules stating plainly the change or changes to be made in the schedule or schedules then in force and the time when the change or changes will go into effect. The Commission, for good cause shown, may allow changes to take effect without requiring the thirty days’ notice herein provided for by an order specifying the changes so to be made and the time when they shall take effect and the manner in which they shall be filed and published.

(e) Authority of Commission to hold hearings concerning new schedule of rates

Whenever any such new schedule is filed the Commission shall have authority, either upon complaint of any State, municipality, State commission, or gas distributing company, or upon its own initiative without complaint, at once, and if it so orders, without answer or formal pleading by the natural-gas company, but upon reasonable notice, to enter upon a hearing concerning the lawfulness of such rate, charge, classification, or service; and, pending such hearing and the decision thereon, the Commission, upon filing with such schedules and delivering to the natural-gas company affected thereby a statement in writing of its reasons for such suspension, may suspend the operation of such schedule and defer the use of such rate, charge, classification, or service, but not for a longer period than five months beyond the time when it would otherwise go into effect; and after full hearings, either completed before or after the rate, charge, classification, or service goes into effect, the Commission may make such orders with reference thereto as would be proper in a proceeding initiated after it had become effective. If the proceeding has not been concluded and an order made at the expiration of the suspension period, on motion of the natural-gas company making the filing, the proposed change of rate, charge, classification, or service shall go into effect. Where increased rates or charges are thus made effective, the Commission may, by order, require the natural-gas company to furnish a bond, to be approved by the Commission, to refund any amounts ordered by the Commission, to keep accurate accounts in detail of all amounts received by reason of such increase, specifying by whom and in whose behalf such amounts were paid, and, upon completion of the hearing and decision, to order such natural-gas company to refund, with interest, the portion of such increased rates or charges by its decision found not justified. At any hearing involving a rate or charge sought to be increased, the burden of proof to show that the increased rate or charge is just and reasonable shall be upon the natural-gas company, and the Commission shall give to the hearing and decision of such questions preference over other questions pending before it and decide the same as speedily as possible.

(f) Storage services(1) In exercising its authority under this chapter or the Natural Gas Policy Act of 1978 (15 U.S.C. 3301 et seq.), the Commission may authorize a natural gas company (or any person that will be a natural gas company on completion of any proposed construction) to provide storage and storage-related services at market-based rates for new storage capacity related to a specific facility placed in service after August 8, 2005, notwithstanding the fact that the company is unable to demonstrate that the company lacks market power, if the Commission determines that—(A) market-based rates are in the public interest and necessary to encourage the construction of the storage capacity in the area needing storage services; and(B) customers are adequately protected.(2) The Commission shall ensure that reasonable terms and conditions are in place to protect consumers.(3) If the Commission authorizes a natural gas company to charge market-based rates under this subsection, the Commission shall review periodically whether the market-based rate is just, reasonable, and not unduly discriminatory or preferential.(June 21, 1938, ch. 556, § 4, 52 Stat. 822; Pub. L. 87–454, May 21, 1962, 76 Stat. 72; Pub. L. 109–58, title III, § 312, Aug. 8, 2005, 119 Stat. 688.)Editorial NotesReferences in Text

The Natural Gas Policy Act of 1978, referred to in subsec. (f)(1), is Pub. L. 95–621, Nov. 9, 1978, 92 Stat. 3350, which is classified generally to chapter 60 (§ 3301 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 3301 of this title and Tables.

Amendments

2005—Subsec. (f). Pub. L. 109–58 added subsec. (f).

1962—Subsec. (e). Pub. L. 87–454 inserted “or gas distributing company” after “State commission”, and struck out proviso which denied authority to the Commission to suspend the rate, charge, classification, or service for the sale of natural gas for resale for industrial use only.

Statutory Notes and Related SubsidiariesAdvance Recovery of Expenses Incurred by Natural Gas Companies for Natural Gas Research, Development, and Demonstration Projects

Pub. L. 102–104, title III, Aug. 17, 1991, 105 Stat. 531, authorized Federal Energy Regulatory Commission, pursuant to this section, to allow recovery, in advance, of expenses by natural-gas companies for research, development and demonstration activities by Gas Research Institute for projects on use of natural gas in motor vehicles and on use of natural gas to control emissions from combustion of other fuels, subject to Commission finding that benefits, including environmental benefits, to both existing and future ratepayers resulting from such activities exceed all direct costs to both existing and future ratepayers, prior to repeal by Pub. L. 102–486, title IV, § 408(c), Oct. 24, 1992, 106 Stat. 2882.

Notes of Decisions

Cited in 551 cases (10 in the last 5 years), 1940–2025 · leading case: Arkansas Louisiana Gas Co. v. Hall, 453 U.S. 571 (1981).

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Arkansas Louisiana Gas Co. v. Hall, 453 U.S. 571 (1981). · cites it 17× “822 -823, 15 U. S. C. §§ 717c (c) and 717c (d), require sellers of *577 natural gas in interstate commerce to file their rates with the Commission.”

Verizon Commc'ns Inc. v. Fed. Commc'ns Comm'n, 535 U.S. 467 (2002). · cites it 6× “See Natural Gas Act, 15 U. S. C. § 717c; Natural Gas Act of 1938, §§ 4a, 5, 52 Stat.”

Permian Basin Area Rate Cases, 390 U.S. 747 (1968). · cites it 9× “The Commission permitted producers to file under § 4 (d), 15 U. S. C. § 717c (d), [29] for the area minimum *764 rate despite existing contractual limitations, and without the consent of the purchaser.”

E. & J. Gallo Winery v. Encana Corp., 503 F.3d 1027 (9th Cir. 2007). · cites it 7× “(Sections 4 and 5 of the NGA, 15 U.S.C. §§ 717c and 717d, govern the rates that can be charged under FERC's rate-setting jurisdiction.”

Stahl Petroleum Co. v. Phillips Petroleum Co., 550 S.W.2d 360 (Tex. App. 1977). · cites it 7× “Beginning 7 June 1954 and continuing past the execution date of the Phillips-Stahl contract, Phillips had numerous gas price rate increase applications, some of which related to sales in the Panhandle Field, pending with the Federal Power Commission.”

Phillips Petroleum Co. v. Stahl Petroleum Co., 569 S.W.2d 480 (Tex. 1978). · cites it 4× “Rather than waiting for approval by the FPC of proposed price increases, the Natural Gas Act allows a pipeline company to begin collecting from its purchasers the proposed increased prices after thirty days' notice, 15 U.S.C. § 717c(d), unless the FPC suspends the operation for…”

KN Energy, Inc. v. Great W. Sugar Co., 698 P.2d 769 (Colo. 1985). · cites it 4× “431 permits curtailment plans aimed at preserving supplies of natural gas in storage to supersede contractual provisions to the contrary, the order provides that such plans may supersede contractual provisions only “if approved by the Commission.”

Sunray Mid-Continent Oil Co. v. Fed. Power Comm'n, 364 U.S. 137 (1960). · cites it 6× “822 , 15 U. S. C. § 717c (c). [11] In pertinent part, § 5 (a) of the Act provides: "Whenever the Commission, after a hearing had upon its own motion or upon complaint of any State, municipality, State commission, or gas distributing company, shall find that any rate, charge, or…”

Pub. Serv. Comm'n v. Fed. Power Comm'n, 543 F.2d 757 (D.C. Cir. 1974). · cites it 13× “Texas Eastern Transmission Corp. (Opinion No. 322), supra note 13.”

United Mun. Distributors Grp. v. Fed. Energy Regulatory Comm'n, United Gas Pipe Line Co., Intervenor, 732 F.2d 202 (D.C. Cir. 1984). · cites it 5× “On June 30, 1981, United, a large gas pipeline company, filed an application for an increase in its rates pursuant to section 4 of the NGA, 15 U.S.C. § 717c. FERC accepted the rates for filing and suspended their effectiveness for the maximum period of five months, until January…”

Nakamura v. State, 47 P.3d 730 (Haw. 2002). · cites it 4× “The Kauai Electric court adopted the standard set forth in Hope Natural Gas, which construed a similar federal statute, 15 U.S.C. § 717c, [5] requiring that rates set by the Federal Power Commission be "just and reasonable.”

Atl. Refining Co. v. Pub. Serv. Comm'n, 360 U.S. 378 (1959). · cites it 4× “4 cents per MCF (including the 1-cent tax) after the first 24-hour delivery period, the latter rate to be subjected to the "just and reasonable" provisions of § 4 of the Act, 15 U. S. C. § 717c. The petitioners refused this proposal, and Tennessee advised the Commission that…”

Show all 551 citing cases →

— 15 U.S.C. § 717c(a) — 129 cases

K N Energy, Inc. v. Fed. Energy Regulatory Comm'n, W. Gas Resources, Inc., Williston Basin Interstate Pipeline Co., Intervenors, 968 F.2d 1295 (D.C. Cir. 1992).

Pub. Serv. Comm'n of NY v. Mid-Louisiana Gas Co., 463 U.S. 319 (1983).

Nakamura v. State, 47 P.3d 730 (Haw. 2002). “The Kauai Electric court adopted the standard set forth in Hope Natural Gas, which construed a similar federal statute, 15 U.S.C. § 717c, [5] requiring that rates set by the Federal Power Commission be "just and reasonable.”

Maine v. Fed. Energy Regulatory Comm'n, 854 F.3d 9 (D.C. Cir. 2017).

E. & J. Gallo Winery v. Encana Corp., 503 F.3d 1027 (9th Cir. 2007). “(Sections 4 and 5 of the NGA, 15 U.S.C. §§ 717c and 717d, govern the rates that can be charged under FERC's rate-setting jurisdiction.”

— 15 U.S.C. § 717c(b) — 47 cases

Great Lakes Gas Transmission Ltd. P'ship v. Essar Steel Minnesota LLC, 843 F.3d 325 (8th Cir. 2016).

Great Lakes Gas Transmission Ltd. P'ship v. Essar Steel Minnesota, LLC, 103 F. Supp. 3d 1000 (D. Minnesota 2015).

State of Louisiana, Louisiana Mun. Ass'n & Par. of Cameron v. Fed. Power Comm'n, 503 F.2d 844 (5th Cir. 1974).

Stand Energy Corp. v. Columbia Gas Transmission Corp., 373 F. Supp. 2d 631 (S.D.W. Va 2005).

United Mun. Distributors Grp. v. Fed. Energy Regulatory Comm'n, United Gas Pipe Line Co., Intervenor, 732 F.2d 202 (D.C. Cir. 1984). “On June 30, 1981, United, a large gas pipeline company, filed an application for an increase in its rates pursuant to section 4 of the NGA, 15 U.S.C. § 717c. FERC accepted the rates for filing and suspended their effectiveness for the maximum period of five months, until January…”

— 15 U.S.C. § 717c(b)(2) — 2 cases

Transcanada Pipelines Ltd. v. Fed. Energy Regulatory Comm'n, No. 87-1229, 878 F.2d 401 (D.C. Cir. 1989).

Interstate Nat. Gas Ass'n of Am. v. Fed. Energy Regulatory Comm'n, 617 F.3d 504 (D.C. Cir. 2010).

— 15 U.S.C. § 717c(b)(l) — 1 case

Nat'l Fuel Gas Supply Corp. v. Fed. Energy Regulatory Comm'n, 468 F.3d 831 (D.C. Cir. 2006).

— 15 U.S.C. § 717c(c) — 46 cases

Verizon Commc'ns Inc. v. Fed. Commc'ns Comm'n, 535 U.S. 467 (2002). “See Natural Gas Act, 15 U. S. C. § 717c; Natural Gas Act of 1938, §§ 4a, 5, 52 Stat.”

NRG Power Mktg., LLC v. Maine Pub. Utils. Comm'n, 558 U.S. 165 (2010).

Stand Energy Corp. v. Columbia Gas Transmission Corp., 373 F. Supp. 2d 631 (S.D.W. Va 2005).

Nw. Pipeline Corp. v. Fed. Energy Regulatory Comm'n, No. 87-1502, 863 F.2d 73 (D.C. Cir. 1988).

— 15 U.S.C. § 717c(d) — 70 cases

KN Energy, Inc. v. Great W. Sugar Co., 698 P.2d 769 (Colo. 1985). “431 permits curtailment plans aimed at preserving supplies of natural gas in storage to supersede contractual provisions to the contrary, the order provides that such plans may supersede contractual provisions only “if approved by the Commission.”

Phillips Petroleum Co. v. Stahl Petroleum Co., 569 S.W.2d 480 (Tex. 1978). “Rather than waiting for approval by the FPC of proposed price increases, the Natural Gas Act allows a pipeline company to begin collecting from its purchasers the proposed increased prices after thirty days' notice, 15 U.S.C. § 717c(d), unless the FPC suspends the operation for…”

Stahl Petroleum Co. v. Phillips Petroleum Co., 550 S.W.2d 360 (Tex. App. 1977). “Beginning 7 June 1954 and continuing past the execution date of the Phillips-Stahl contract, Phillips had numerous gas price rate increase applications, some of which related to sales in the Panhandle Field, pending with the Federal Power Commission.”

Nat'l Fuel Gas Supply Corp. v. Fed. Energy Regulatory Comm'n, 899 F.2d 1244 (D.C. Cir. 1990).

Pub. Serv. Comm'n v. Fed. Power Comm'n, 543 F.2d 757 (D.C. Cir. 1974). “Texas Eastern Transmission Corp. (Opinion No. 322), supra note 13.”

— 15 U.S.C. § 717c(e) — 149 cases

Tennessee Gas Pipeline Co., a Div. of Tenneco Inc. v. Fed. Energy Regulatory Comm'n, 860 F.2d 446 (D.C. Cir. 1988).

— 15 U.S.C. § 717c(f) — 1 case

N. Nat. Gas Co. v. Fed. Energy Regulatory Comm'n, 700 F.3d 11 (D.C. Cir. 2012).

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