FPC v. Memphis Light, Gas & Water Division

Supreme Court of the United States

411 U.S. 458

Federal Power Commission  v.  Memphis Light, Gas & Water Division et al.

Certiorari to the United States Court of Appeals for the District of Columbia Circuit

No. 72-486.  Argued: March 27, 1973 --- Decided: May 7, 1973[1]

Section 441 of the Tax Reform Act of 1969 does not deprive the Federal Power Commission of the authority to permit a utility that is subject to its jurisdiction under the Natural Gas Act to change the depreciation method that it uses for purposes of rate-making from accelerated depreciation with "flow through" of the utility's tax savings to customers to accelerated depreciation with normalization (where the income tax expense allowed in the cost of service is computed on a straight-line depreciation basis) with respect to pre-1970 property as well as replacement property. Pp. 465-474.

149 U.S. App. D.C. 238, 462 F.2d 853, reversed and remanded.


DOUGLAS, J., delivered the opinion for a unanimous Court.


Samuel Huntington argued the cause for petitioner in No. 72-486. With him on the brief were Solicitor General Griswold, Leo E. Forquer, and George W. McHenry, Jr. Christopher T. Boland argued the cause for petitioner in No. 72-488. With him on the briefs were Melvin Richter and Robert O. Koch.

George E. Morrow argued the cause for respondent Memphis Light, Gas & Water Division in both cases. With him on the brief was Reuben Goldberg. Richard A. Solomon argued the cause and filed a brief for respondent Public Service Commission for the State of New York in both cases. Charles F. Wheatley, Jr., and William T. Miller filed a brief for respondent American Public Gas Assn. in both cases.[2]


  1. ↑ Together with No. 72-488, Texas Gas Transmission Corp. v. Memphis Light, Gas & Water Division et al., also on certiorari to the same court.
  2. ↑ Briefs of amici curiae urging reversal in both cases were filed by Jerome J. McGrath for the Independent Natural Gas Association of America, and by Thomas M. Debevoise for Jersey Central Power A Light Co. et al.
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