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Meaning of term u ured.




the rates and service of such person and facilities bo sub ject to regulation by a State commission. The matters exempted from the provisions of this Act by this subsection are hereby declared to be matters primarily of local concern and subject to regulation by the several States. A certification from such State commission to the Federal Power Commission that such State commis sion has regulatory jurisdiction over rates and service of such person and facilities and is exercising such jurisdiction shall constitute conclusive evidence of such regulatory power or jurisdiction. [15 U. S. C. 8 717(c)]

Sec. 2. When used in this act, unless the context otherwise requires

(1) “Person” includes an individual or a corporation.

(2) "Corporation" includes any corporation, jointstock company, partnership, association, business trust, organized group of persons, whether incorporated or not, receiver or receivers, trustee or trustees of any of the foregoing, but shall not include municipalities as hereinafter defined.

(3) "Municipality” means a city, county, or other political subdivision or agency of a State.

(4) “Stato” means a State admittod to the Union, the District of Columbia, and any organized Territory of the United States.

(5) “Natural gas” means either natural gas unmized, or any mixture of natural and artificial gas.

(6) "Natural-gas company" means a person engaged in the transportation of natural gas in interstate commerce, or the sale in interstate commerce of such gas for resale.

(7) “Interstate commerce" means commerce between any point in a State and any point outside thereof, or between points within the same State but through any place outside thereof, but only insofar as such commerce takes place within the United States.

(8) "State commission” means the regulatory body of the State or municipality having jurisdiction to regulate rates and charges for the sale of natural gas to consumers within the State or municipality.

(9) “Commission” and “Commissioner" means the Federal Power Commission, and a member thereof, respectively. [15 U. S. C. 8 717a)


"Natural na"

“Natural-fas company.

"Interstate commerce.

"State com minion."

"Commission" and "Commisbloner."

part, and on conditions.


Rates and charges for

EXPORTATION OR IMPORTATION OF NATURAL QAS Sec. 3. Aftor six months from the date on which this Exportation or act takes effect no person shall export any natural gas prohibited from the United States to a foreign country or import misolon order any natural gas from a foreign country without first authority. having secured an order of the Commission authorizing it to do so. The Commission shall issue such order upon application, unless, after opportunity for hearing, Application : it finds that the proposed exportation or importation will not be consistent with the public interest. The Commission may by its order grant such application, in order may be whole or in part, with such modification and upon such bolly, or lo terms and conditions as the Commission may find necessary or appropriate, and may from time to time, after opportunity for hearing, and for good cause shown, Supplemental make such supplemental order in the premises as it may find necessary or appropriate. (15 U. S. C. 8 717b] RATES AND CHARGES ; SCHEDULES; SUSPENSION OF NEW

RATES Sec. 4. (a) All rates and charges made, demanded, or received by any natural-gas company for or in connec- transportation tion with the transportation or sale of natural gas sub- Just and ject 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 Unreasonable or charge that is not just and reasonable is hereby charges are declared to be unlawful.

(b) 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 sub- Undue prelerject any person to any undue prejudice or disadvantage, advantage

prohibited. or (2) maintain any unreasonable difference in rates,

Unreasonable charges, service, facilities, or in any other respect, either diferences to as between localities or as between classes of service.

(c) Under such rules and regulations as the Commis- ice forbidden. sion may prescribe, every natural-gas company shall Filing and file with the Commission, within such time (not less jehedules subthan sixty days from the date this act takes effect) and and regulations in such form as the Commission may designate, and shall keep open in convenient form and place for pub- Publle to have lic inspection, schedules showing all rates and charges schedules. for any transportation or sale subject to the jurisdiction of the Commission, and the classifications, practices, and



rates, etc., or in localities or classes of sery.

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notice of change in

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of new scbedules may be made on complaint or Initiative of Commission.

regulations affecting such rates and charges, together
with all contracts which in any manner affect or relate

to such rates, charges, classifications, and services.
Thirty days (d) Unless the Commission otherwise orders, no

change shall be made by any natural-gas company in rates required.

any such rate, charge, classification, or service, or in
any rule, regulations, or contract relating thereto, except

after thirty days' notice to the Commission and to the Posting : Nling 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 from operation 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. Investigation

(e) 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 Bearing.

upon reasonable notice, to enter upon a hearing con-

cerning the lawfulness of such rate, charge, classifi-
cation, or service; and, pending such hearing and
the decision thereon, the Commission, upon filing with
such schedules and delivering to the natural-gas com-
pany affected thereby a statement in writing of its

reasons for such suspension, may suspend the operation Buspension of such schedule and defor the use of such rate, charge,

classification, or service, but not for a longer period
than five months beyond the time when it would other-

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 Op expiration of suspension made at the expiration of the suspension period, on period cbange,


period not to exceed 6 month..

wise go

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motion of the natural-gas company making the filing, the proposed change of rate, charge, classification, or

on motion, sball go into edect.



service shall go into effect. Where increased rates or charges are thus made effective, the Commission may, increased bond by order, require the natural-gas company to furnish a for refund may

be required 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 Accurate acsuch increase, specifying by whom and in whose behalf increased rate 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 Refund of rates or charges by its decision found not justified. At imount. any hearing involving a rate or charge sought to be increased, the burden of proof to show that the increased Burden of rate or charge is just and reasonable shall be upon the reasonableness natural-gas company, and the Commission shall give to rate on the hearing and decision of such questions preference Preference. over other questions pending before it and decide the same as speedily as possible. [76 Stat. 72 (1962); 15 U.S.C. 8 717c] FIXING RATE AND CHARGES; DETERMINATION OF COST OF

PRODUCTION OR TRANSPORTATION Suc. 5. (a) Whenever the Commission, after a hearing Commlosion had upon its own motion or upon complaint of any State, motion or municipality, State commission, or gas distributing com- determino pany, shall find that any rato, charge, or classification rate, etc. demanded, observed, charged, or collected by any natural-gas company in connection with any transportation or sale of natural gas, subject to the jurisdiction of the Commission, or that any rule, regulation, practice, or contract affecting such rate, charge, or classification is unjust, unreasonable, unduly discriminatory, or preferential, the Commission shall determine the just and rea- Just and reasonable rate, charge, classification, rulo, regulation, prac- etc., shall be

fized by order. tice, or contract to be thereafter observed and in force, and shall fix the same by order: Provided, however, That the Commission shall have no power to order any in- Commission crease in any rate contained in the currently effective increase apart schedule of such natural-gas company on file with the schedule, but Commission, unless such increase is in accordance with decrease in a new schedule filed by such natural-gas company; but the Commission may order a decrease where existing rates are unjust, unduly discriminatory, preferential, otherwise unlawful, or are not the lowest reasonable rates.

complaint may


sonable rate,


rates, etc.

Commission may investiproduction or transportation where it can not establish rate.

(b) The Commission upon its own motion, or upon the of request of any State commission, whenever it can do so

without prejudice to the efficient and proper conduct of its affairs, may investigate and determine the cost of the production or transportation of natural gas by a naturalgas company in cases where the Commission has no authority to establish a rate governing the transportstion or sale of such natural gas. (15 U. S. C. 8 717d]


Actual legtmate cost of property. depreciation, etc., to be ascertained for rate mating

Sec. 6. (a) The Commission may investigate and ascertain the actual legitimate cost of the property of every natural-gas company, the depreciation therein, and, when found necessary for rate-making purposes, other facts which bear on the determination of such cost or depreciation and the fair value of such property.

(b) Every natural-gas company upon request shall file with the Commission an inventory of all or any part of its property and a statement of the original cost thereof, and shall keep the Commission informed regarding the cost of all additions, betterments, extensions, and new construction. (15 U. S. C. 8 717e)

Inventory, statement of original cost, add additions, bettermenta, etc., to be dled upon request.


may direct
ertension or
improvement of
facilities and
of physical

Sec. 7. (a) Whenever the Commission, after notice and opportunity for hearing, finds such action necessary or desirable in the public interest, it muy by order direct a natural-gas company to extend or improve its transportation facilities, to establish physical connection of its transportation facilities with the facilities of, and sell natural gas to, any person or municipality engaged or legally authorized to engage in the local distribution of natural or artificial gas to the public, and for such purpose to extend its transportation facilities to communities immediately adjacent to such facilities or to territory served by such natural-gas company, if the Commission finds that no undue burden will be placed upon such natural-gas company thereby: Provided, That the Com

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