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Central Illinois Public Service Co. v. Federal Power Commission

November 3, 1964

CENTRAL ILLINOIS PUBLIC SERVICE COMPANY, PETITIONER,
v.
FEDERAL POWER COMMISSION, RESPONDENT, AND VILLAGE OF MILFORD AND CITY OF BUSHNELL, INTERVENORS



Author: Duffy

Before DUFFY, KILEY and SWYGERT, Circuit Judges.

DUFFY, Circuit Judge.

Central Illinois Public Service Company, (Central Illinois) or (petitioner), has filed a petition pursuant to Section 19(b) of the Natural Gas Act (15 U.S.C. ยง 717r), to review Opinion No. 402 and paragraph (B) (iii) of the accompanying order of the Federal Power Commission issued on September 17, 1963 (30 FPC 698) which has not, as yet, been published.

The Federal Power Commission attached conditions to the certificates of public convenience and necessity which were granted to Panhandle Eastern Pipe Line Company (Panhandle) and to Trunkline Gas Company (Trunkline) on July 27, 1962. The conditions required these companies to render gas service to the city of Bushnell and to the village of Milford, both located in Illinois.

The requests for service by Bushnell and Milford constituted a small part of a complex consolidated proceeding before the Commission, designated American Louisiana Pipe Line Company, Commission Docket No. G-2306. This phase of the proceeding was commenced in 1960 when Panhandle and Trunkline filed applications for certificates of public convenience and necessity under Section 7 (c) of the Natural Gas Act for the proposed enlargement of their system capacities.

Central Illinois, to whom Panhandle proposed to increase service, petitioned for and was granted leave to intervene in support of Panhandle's request which included an allocation of gas for service by petitioner to Bushnell but none to Milford.

Later, Bushnell and Milford each petitioned for leave to intervene, requesting the Commission to attach such reasonable conditions to the certificates of public convenience and necessity which would order Panhandle and Trunkline to sell directly to Bushnell and Milford respectively, for their proposed municipally operated natural gas distribution systems.

On July 27, 1962, after hearing, the Commission issued an order adopting the Examiner's decision granting certificates to Panhandle and Trunkline for enlarging their systems. The Commission reserved for later decision, the issue of gas service to Bushnell and Milford.

On January 22, 1963, the Examiner issued his decision which granted the request of Bushnell and Milford for gas service by attaching conditions to the certificates of Panhandle and Trunkline. The Commission, on September 17, 1963, modified and adopted the Examiner's initial decision. An application for a rehearing was denied.

On January 2, 1964, Central Illinois filed a petition for review in this Court. On the following day, it filed a similar petition for review in the Court of Appeals for the Third Circuit. This latter petition was thereafter transferred to this Court.

Bushnell is a city of about 3700 population. For thirty years it has served its residents with a municipally-owned propane air gas system. Bushnell sought a supply of natural gas for this distribution system. Bushnell proposed to construct and operate a pipeline approximately thirty-nine miles in length.

The village of Milford is an incorporated municipality with a population of approximately 1700. Its intervention in this proceeding was to obtain an allocation of natural gas from Trunkline for the municipal utility it proposed to build and operate. The pipeline to be constructed would be thirteen miles in length.

The Commission applied the criteria set forth in Section 7(a) of the Natural Gas Act (15 U.S.C. 717f(a) ) and concluded an allocation to Milford was necessary and desirable in the public interest, and ordered Trunkline to connect with Milford's proposed lateral transmission line and to sell 906 Mcf*fn1 of gas to Milford, its peak-day need. The Commission again applied the criteria of Section 7(a) and ordered Panhandle to connect with Bushnell's proposed lateral at Canton, Illinois, and to sell 2000 Mcf of gas to Bushnell, its peak-day need, for some 5500 persons living in the proposed service area.

Central Illinois and others opposed Bushnell's request for natural gas. However, Central Illinois was unwilling to sell natural gas to Bushnell from its nearby source of supply unless Bushnell would first sell to Central Illinois its electric ...


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