15 USC 717d

§ 717c–1

TITLE 15—COMMERCE AND TRADE

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.)
REFERENCES 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, as

Page 1036

amended, 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.
ADVANCE 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.

§ 717c–1. Prohibition on market manipulation
It shall be unlawful for any entity, directly or
indirectly, to use or employ, in connection with
the purchase or sale of natural gas or the purchase or sale of transportation services subject
to the jurisdiction of the Commission, any manipulative or deceptive device or contrivance (as
those terms are used in section 78j(b) of this
title) in contravention of such rules and regulations as the Commission may prescribe as necessary in the public interest or for the protection of natural gas ratepayers. Nothing in this
section shall be construed to create a private
right of action.
(June 21, 1938, ch. 556, § 4A, as added Pub. L.
109–58, title III, § 315, Aug. 8, 2005, 119 Stat. 691.)
§ 717d. Fixing rates and charges; determination
of cost of production or transportation
(a) Decreases in rates
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 classification 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 reasonable rate,
charge, classification, rule, regulation, practice,
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 increase in any rate contained in the currently effective schedule of
such natural gas company on file with the Commission, unless such increase is in accordance

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TITLE 15—COMMERCE AND TRADE

with 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.
(b) Costs of production and transportation
The Commission upon its own motion, or upon
the 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
transportation or sale of such natural gas.
(June 21, 1938, ch. 556, § 5, 52 Stat. 823.)
§ 717e. Ascertainment of cost of property
(a) Cost of property
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 ratemaking purposes, other facts which bear on the
determination of such cost or depreciation and
the fair value of such property.
(b) Inventory of property; statements of costs
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.
(June 21, 1938, ch. 556, § 6, 52 Stat. 824.)
§ 717f. Construction, extension, or abandonment
of facilities
(a) Extension or improvement of facilities on
order of court; notice and hearing
Whenever the Commission, after notice and
opportunity for hearing, finds such action necessary or desirable in the public interest, it may
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 Commission shall have no authority to
compel the enlargement of transportation facilities for such purposes, or to compel such natural-gas company to establish physical connection or sell natural gas when to do so would impair its ability to render adequate service to its
customers.
(b) Abandonment of facilities or services; approval of Commission
No natural-gas company shall abandon all or
any portion of its facilities subject to the juris-

§ 717f

diction of the Commission, or any service rendered by means of such facilities, without the
permission and approval of the Commission first
had and obtained, after due hearing, and a finding by the Commission that the available supply
of natural gas is depleted to the extent that the
continuance of service is unwarranted, or that
the present or future public convenience or necessity permit such abandonment.
(c) Certificate of public convenience and necessity
(1)(A) No natural-gas company or person
which will be a natural-gas company upon completion of any proposed construction or extension shall engage in the transportation or sale of
natural gas, subject to the jurisdiction of the
Commission, or undertake the construction or
extension of any facilities therefor, or acquire or
operate any such facilities or extensions thereof,
unless there is in force with respect to such natural-gas company a certificate of public convenience and necessity issued by the Commission
authorizing such acts or operations: Provided,
however, That if any such natural-gas company
or predecessor in interest was bona fide engaged
in transportation or sale of natural gas, subject
to the jurisdiction of the Commission, on February 7, 1942, over the route or routes or within
the area for which application is made and has
so operated since that time, the Commission
shall issue such certificate without requiring
further proof that public convenience and necessity will be served by such operation, and without further proceedings, if application for such
certificate is made to the Commission within
ninety days after February 7, 1942. Pending the
determination of any such application, the continuance of such operation shall be lawful.
(B) In all other cases the Commission shall set
the matter for hearing and shall give such reasonable notice of the hearing thereon to all interested persons as in its judgment may be necessary under rules and regulations to be prescribed by the Commission; and the application
shall be decided in accordance with the procedure provided in subsection (e) of this section
and such certificate shall be issued or denied accordingly: Provided, however, That the Commission may issue a temporary certificate in cases
of emergency, to assure maintenance of adequate service or to serve particular customers,
without notice or hearing, pending the determination of an application for a certificate, and
may by regulation exempt from the requirements of this section temporary acts or operations for which the issuance of a certificate
will not be required in the public interest.
(2) The Commission may issue a certificate of
public convenience and necessity to a naturalgas company for the transportation in interstate
commerce of natural gas used by any person for
one or more high-priority uses, as defined, by
rule, by the Commission, in the case of—
(A) natural gas sold by the producer to such
person; and
(B) natural gas produced by such person.
(d) Application for certificate of public convenience and necessity
Application for certificates shall be made in
writing to the Commission, be verified under