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About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (May 22, 1963)
3Ar.EI-C HERALD AND NEWS, Klamath Falls, Ore. WL-dnetday, May 22, 1963 Court Upholds Area Gas Rate Plan WASHINGTON UPI - The .Supreme Court has upheld the Federal Power Commission's new method of regulating natural gas producers rales by areas instead of by each company's individual .costs. I-iThe decision was by a 5-4 vote, Iiilh Justice John M. Harlan writ 'iba the majority opinion. i"We recognize the unusual dif-j firulties inherent in regulating the! , price of a commodity such as na . tural gas." Harlan said. "We re spect the commission's considered judgment, backed by sound and persuasive reasoning, that the in dividual company cost-of-service method is not a feasible or suit . able one for regulating the rates '.oS independent producers." ; :"We share the commission's hopes that the area approach may prove to be the ultimate solu tion," he said for the majority. Hie court's action empowers the FPC to stabilize gas rates for thel consumer. Under the individual cost formula, rates fluctuated widely. Dissenters were Chief Justice Earl Warren and Justices Tom C Clark, Hugo L. Black and William IJ- Brennan Ar. The lawsuit was a continuation of a 1954 landmark case when the Supreme Court ruled that the; rPC has jurisdiction lo regulate wholesale rates of 3,(Xin or more producers. Before that, it had been confined to rates of pipelines. In fixing pipeline rates, the com mission traditionally considered separately each company's costs of service. Then it allowed rates to provide a fair return on invest ment. In the 1934 Phillips case, the commission adopted an entirely new formula because of the vast differences between producer and pipeline operations. It announced that it would fix prices on a sectional bases by fix ing ceilings in 23 specified areas. Clark, speaking fnr Ihe dissent-1 ers, was highly critical ol the commission, Discussing the area plan, he said: "If the higher and lower costs are averaged, as the commission indicates it intends lo do. then the higher cost producer will still not recover his cost and the rate will be confiscatory. Dollar Days Special! Boys' 2 Piece SPORT SUITS 'Walking shorts or boxer shorts, each with a marching or coordin ated shirt. Sizes 1 thru 8. Wonder ful selection! 2.49 to 3.99 Buy ana Suit at Regular Price and get 2nd Suit for only 4-' K,.Q... .. fxcluiivtly far Children 619 Main W Give W Green Stomps SURE-FIT ONE-PIECE SLIPCOVERS t - n THAT STRETCH TO FIT Machine Washable No Ironing Stain Resistant Water Repellent At last! Budget minded covert that will fit any tiie sectional furniture. No-car textured fabric, ingeniously custom tailored in one piece . . . so easy to fit perfectly . , . remain wrinkle free. 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