ORDER DENYING MOTION FOR TEMPORARY RESTRAINING ORDER
I. INTRODUCTION
In this action brought under section 401(b) of the Federal Communications Act of 1934, as amended [Communications Act], 47 U.S.C. § 401(b), New England Telephone [NET] seeks injunctive relief requiring the Maine Public Utilities Commission [PUC] to adopt, for the purpose of setting NET’S intrastate revenues, the depreciation calculations prescribed by the Federal Communications Commission [FCC]. The motion for a temporary restraining order [TRO] has been briefed and argued.
II. FACTS
On December 14, 1982 the FCC released an order prescribing the use of certain accounting practices in calculating NET’s revenues [Prescription Order]. In paragraph 26 of the Prescription Order, the FCC expressly reserved the question as to whether state utility commissions would be bound to apply the prescribed accounting practices, noting that the question “is before us' in a separate proceeding.”
Neither the PUC nor NET was a party to that “separate proceeding”, which involved (1) a petition filed by American Telephone and Telegraph Company for reconsideration of a prior FCC order declaring that FCC depreciation prescriptions do not havе preemptive effect, and (2) a petition for declaratory relief filed by General Telephone Company of Ohio seeking a declaration that the Ohio Public Utilities Commission was preempted from applying depreciation rates different from those prescribed by the FCC. In its decision [Preemption Order], released on January 6, 1983, the FCC granted both petitions, holding that “inconsistent state prescribed depreciation rates are preempted by [sections 220(a) & (b) of] the ... Act.” *952 [Preemption Order at ¶43]. The FCC ordered that the Preemption Order be published in the Federal Register [¶48] and that copies be served on each state commission [¶49].
Despite having received a copy of the Preemption Order, the PUC, on April 26, 1983, issued an order [PUC Order] setting NET’s intrastate revenues by using depreciation calculations different from those prescribed in the Prescription Order.
All other things being equal the application of the accounting conventions prescribed by the FCC would increase NET’s intrastate revenues for the current year by $1,667,000.
III. DISCUSSION
A. Johnson Act
The PUC contends that the Johnson Act, 28 U.S.C. § 1342, prevents this Court from enjoining the PUC. 1 Since the Court’s jurisdiction is based upon section 401(b) of the Communications Act and not solely upon diversity of citizenship or on repugnance of the PUC order to the Federal Constitution, the Johnson Act does not apply. The PUC incorrectly contends that becáuse only the Supremacy Clause, U.S. Const, art. VI, renders state law subordinate to federal law, this Court’s jurisdiction is, for purposes of the Johnson Act, based solely on the repugnance of the PUC order to the Federal Constitution. Not only would the PUC’s interpretation of the Johnson Act render the Act’s first requirement a virtual nullity, 2 such an interpretation also tortures the plain meaning of the language of that provision. The use of the word “solely” indicates at least that where, as here, jurisdiction over a claim is based principally upon an Act of Congress the Johnson Act does not apply. The circumstances surrounding its enactment indicate that
[t]he Act, adopted in 1934, was designed to further the same policies reflected in the three-judge court requirement which had been enacted in 1910. Alabama Public Service Commission v. Southern Railway,341 U.S. 341 , 357, 358,71 S.Ct. 762 , 772,95 L.Ed. 1002 (1951) (Frankfurter, J., concurring). Hence, the Supreme Court’s analysis of the legislative purpose of the three-judge court provision is relevant to our construction of the Johnson Act:
Their [the Congress’] ire was aroused by the frequent grants of injunctions against the enforcement of progressive state regulatory legislation, usually on substantive due process grounds.... In contrast, a case involving an alleged incompatibility between state and federal statutes ... involves more confining legal analysis and can hardly be thought to raise the worrisome possibilities that economic or political predilections will find their way into a judgment.
International Brotherhood of Electrical Workers v. Public Service Commission,
Finally, it is simply inaccurate to say that the first test “is always found to be satisfied.” Several cases, in addition to
International Brotherhood of Electrical Workers,
have held that the first test is not met where a state agency’s order is challenged as violative of federal statutory law.
See, e.g., Munoz v. Porto Rico Ry. Light & Power Co.,
B. The Motion for a TRO
In the First Circuit, a plaintiff must satisfy four criteria in order tо be entitled to a preliminary injunction. The Court must find: (1) that plaintiff will suffer irreparable injury if the injunction is not granted; (2) that such injury outweighs any harm which granting injunctive relief would, inflict on the defendant; (3) that plaintiff has exhibited a likelihood of success on the merits; and (4) that the public interest will not be adversely affected by the granting of the injunction.
Planned Parenthood League of Mass. v. Bellotti,
1. Irreparable Harm.
Depreciation being an expense, whatever depreciation accrues in a given year is generally recoverable in that year from ratepayers. Accordingly, the PUC’s refusal to adopt the higher depreciation rulеs prescribed by the FCC will reduce NET’s weekly revenues during the current year by $32,058. In its Complaint [¶ 10(a) ], NET contends that since utilities are generally not allowed to increase rates in order to recoup past losses,
see Federal Power Commission v. Natural Gas Pipeline Co.,
At oral argument and in its post-argument memorandum NET contended that the delay itself would cause irreparable injury. NET relies on the FCC’s finding in the Preemption Order that delayed capital recovery “could delay or prevent modernization which would add to the costs borne by ratepayers and could, ultimately, threaten carriers’ ability to fully recover their invested capital.” [Preemption Order ¶ 37]. 4 But this finding relates only to the perceived potential adverse effects of prolonged underdepreciation. None of the *954 FCC’s findings address the significance of a delay in recovering the relatively small amount of additional revеnue NET would receive as the result of a TRO. Indeed, none of the FCC’s findings pertain to NET directly. And the record is devoid of evidence that this underdepreciation, which apparently has been going on for some time, has threatened NET’s “ability to fully recover its invested capital.” NET has presented no evidence and indeed has made no allegation that it is, or absent a TRO may become, undercapitalized or unable to obtain capital funds.
Accordingly, the Court finds that NET has failed to meet its burden of proving irreparable injury.
2. The Relative Harm.
Since NET has not shown that it will suffer irreрarable injury absent a TRO, it has also failed to satisfy the second Bellotti criterion.
3. Likelihood of Success on Merits.
Although the complaint asserts three independent theories in support of NET’s request for injunctive relief, at oral argument and in its memoranda in support of its motion for a TRO NET has pressed and the Court will consider only the theory that the Preemption Order is enforceable against the PUC under section 401(b) of the Communications Act. 5 Section 401(b) provides as follows:
(b) If any person fails or neglects to obey any order of the Commission other than for the payment of money, while the same is in effect, the Commission or any party injured therеby, or the United States, by its Attorney General, may apply to the appropriate district court of the United States for the enforcement of such order. If, after hearing, that court determines that the order was regularly made and duly served, and that the person is in disobedience of the same, the court shall enforce obedience of such order by a writ of injunction or other proper process, mandatory or otherwise, to restrain such person or the officers, agents, or representatives of such person, from further disobediencе of such order, or to enjoin upon it or them obedience to the same.
The order is a clear declaration of the FCC’s position that federal law preempts all state depreciation rates which are inconsistent with the rules prescribed by the FCC. 6 Since it is undisputed that the depreciation rates adopted by the PUC Order are inconsistent with those prescribed in the Prescription Order, the critical issue is whether the PUC’s refusal to comply with the holding of the Preemption Order constitutes “disobedience of [an order]”, within the meaning of section 401(b). 7
Relying on
Columbia Broadcasting System, Inc. v. United States,
It is the signing of the contract which, by virtue of the regulations alone, has legal consequences to the stations and to appellant. The regulations are not any less reviewable because their promulgation did not operate on their own force to deny or cancel a license. It is enough that failure to comply with them penalizes licensees and appellant, with whom they contract.
Columbia Broadcasting System, Inc. v. United States,
The ultimate test of reviewability is not to be found in an overrefined technique, but in the need of the review to protect from the irreparable injury threatened in the exceptional case by administrative rulings which attach legal consequences to action taken in advаnce of other hearings and adjudications that may follow, the results of which the regulations purport to control.
Id. at 425,62 S.Ct. at 1204 .
The present action is brought by a private party under section 401,
for enforcement,
not under section 402 for review, of the Preemption Order. It is well established that “[t]he Communications Act ... did not create new private rights.”
Scripps-Howard Radio, Inc. v. Federal Communications Commission,
Section 401 reflects the congressional mandate given the FCC; it does not empower private enforcement. Under section 401(a) the Attorney General may seek a writ of mandamus to compel compliance with the provisions of the Communications Act. But the Attorney General has no discretion; he may bring an action if, and only if, 47 U.S.C. § 401(a), the FCC requests. In sharp contrast to the provisions of subsections (a) and (c), section 401(b) provides that the FCC, the United States (without FCC authorization) or any injured party may bring an action in district court for the enforcement of an FCC order. It appears that Congress intended that, in order to promote the enforcement role of the FCC, section 401(b) would be given narrow scope.
Although the provisions of seсtion 401 do not specify whether regulations are to be enforced under subsection (a) or (b), it is clear from section 4(i) of the Communications Act, 47 U.S.C. § 154(i), that Congress understood orders to be distinct from rules and regulations. The importance of the FCC’s enforcement role would be seriously impinged if regulations, which are often general and which frequently either interpret or merely parrot legislation, were to be considered enforceable as orders under subsection 401(b). 10 Thus, in order to preserve the prerogative of the FCC, even specific FCC regulatiоns, and the Communications Act itself, do not give rise to implied private rights of action, see Lechtner v. Brownyard, supra. 11
NET next contends that, assuming that not all FCC pronouncements are enforceable under section 401(a), the Preemption Order should nevertheless be considered an order which is enforceable against all state commissions under section 401(b). NET points to the fact that the Preemption Order is called an order. But the “label placed upon the [Preemption Order] by the [FCC] is not necessarily conclusive, for it is the substance of what the [FCC] has purported to do and hаs done which is decisive.”
Columbia Broadcasting System, Inc. v. United States,
316 U.S. at
*957
416,
Finally, NET mistakenly contends that under the definitions of the Administrative Procedure Act [APA], 5 U.S.C. §§ 551-559, 701-706, the Preemption Order is an order enforceable against the PUC. The definitional section of the APA, 5 U.S.C. § 551, makes clear that the categories of “rules” and “orders” are mutually exclusive.
12
The distinction drawn by these' definitions is between the promulgation of policy-type rules or standards binding upon the affected public generally, on the one hand, and the resolution of, and application of legal principles to, disputed factual matters, on the other.
See United States v. Florida East Coast Ry. Co.,
The definitions contained in the APA, enactеd in 1946, cannot simply be grafted onto the Communications Act of 1934.
See National Petroleum Refiners Ass’n v. Federal Trade Commission,
Unlike an administrative order or a court judgment adjudicating the rights of individuals, which is binding only upon parties to the particular proceeding, a valid exercise of the rule-making power is addressed to and sets a standard of conduct for all to whom its terms apply. It operates as such in advance of the imposition of sanctions upon any particular individual.
The very use of the words “obey” and “disobedience”, as opposed to “comply”
*958
and “violation”, in section 401(b), indicates that the word “order” wаs intended to refer to the type of self-executing directive referred to in
Columbia Broadcasting System.
And the jurisprudence under section 401(b) also supports the view that the section was intended to provide a forum only for the enforcement of directives which generally would be addressed to a party to an adjudicatory proceeding. In
Comtronics, Inc. v. Puerto Rico Telephone Co., supra,
the plaintiff sought injunctive relief, alleging,
inter alia,
that the defendant had violated the FCC’s “holdings, rulings and policies.... ” In dismissing the action for lack of jurisdiction the court noted that “[o]nly under section 402(b) (sic) could a subscriber apply to this Court, and then only to obtain enforcement of an
order
of the FCC.”
Comtronics, Inc. v. Puerto Rico Telephone Co.,
The cases interpreting a now repealed provision of the Intеrstate Commerce Act, 49 U.S.C. § 16(12), which was apparently the legislative progenitor of section 401(b),
13
further support the conclusion that the word “order” as used in section 401(b) was intended to mean “directive”. For example, in
McFaddin Express, Inc. v. Adley Corp.,
As the Supreme Court has observed in its discussion of section 16(12), “[i]n common acceptance a suit to enforce an order of the Commission is one which seeks to compel
the carrier to whom the order is directed
to yield obedience to its
command.” Illinois Central R.R. Co. v. State Public Utilities Commission,
The Court need not consider whether declaratory orders 15 are enforceable under section 401(b) against named parties. But the Court is satisfied that a nonparty who violates the holding of a deсlaratory order issued by the FCC is not thereby “in disobedience of an order” within the meaning of section 401(b). Therefore, NET has failed to demonstrate a likelihood that it will succeed on the merits of its action under section 401(b).
NET having failed to satisfy three of the criteria 16 set out in Bellotti, it is ORDERED that NET’S motion for a TRO be DENIED. 17
SO ORDERED.
Notes
. The Johnson Act provides as follows:
The district courts shall not enjoin, suspend or restrain' the operation of, or compliance with, any order affecting rates chargeable by a public utility and made by a State administrative agency or a rate-making body of a State political subdivision, where:
(1) Jurisdiction is based solely on diversity of citizenship or repugnance of the order to the Federal Constitution; and,
(2) The order does not interfere with interstate commerce; and,
(3) The order has been made after reasonable notice and hearing; and,
(4) A plain, speedy and efficient remedy may be had in the courts of such State.
. Since by its terms the Johnson Act only applies to actions to enjoin the orders of state agencies, jurisdiction over every action asserting that an order violates a federal statute would, under the PUC’s theory, be based solely on repugnancy to the Constitution.. Indeed, the PUC cites Wright and Miller for thе proposition that “[i]t is difficult to see what significance [the Act’s first paragraph] is expected to have and it is always found to be satisfied,” 17 C. Wright, A. Miller, E. Cooper & E. Gressman, Federal Practice & Procedure, § 4236 at 411 (1978).
. Although
Bellotti
involved a preliminary injunction, NET correctly contends that the factors enumerated in
Bellotti
should be applied in considering a motion for a TRO. This approach is consistent with the realization that the distinction between TRO’s and preliminary injunctions is at best unclear,
see San Francisco Real Estate v. Real Estate Investment Trust of America,
. Similarly, at paragraph 37 of the Preemption Order the FCC stated:
The extent of state action attempting to prevent carriers from utilizing our depreciation prescriptions places substantial burdens on carriers and could well impair their ability to raise the investment capital they will need to fully compete in the continually evolving competitive telecommunications marketplace.
. The other theories asserted in the Complaint are that the PUC order violates (1) section 220(b) of the Communications Act, 47 U.S.C. § 220(b), which according to NET and the FCC preempts state regulation, and (2) the Commerce Clause, U.S. Const. art. I, § 8, cl. 3.
. See, for example, the following passages from the Preemption Order:
Accordingly, we find that the statutory language indicates that FCC depreciation prescriptions are to be followed in both the federal and state jurisdictions unless the FCC provides otherwise. As demonstrated below, this construction is also consistent with the legislative history.
Preemption Order ¶ 17.
[W]e find it imperative to declare today that inconsistent state prescribed depreciation rates are preempted by the Communications Act and are accordingly void.
Id. at ¶ 43.
We must find that inconsistent depreciation rates prescribed by state commissions will interfere with the efficient operation of the communications marketplace and thereby frustrate the achievement of the Commission’s policies. Accordingly, we find that this Commission’s depreciation policies and rates, including the expensing of inside wiring, preempt inconsistent state depreciation policies and rates.
Id. at ¶ 45.
. It is unclear whether the PUC is a “person” within the meaning of section 401(b). See 47 U.S.C. § 153(i) [defining “person”].
. NET has not clarified its position as to the proper interpretation of sectiоn 401(b). At oral argument NET counsel argued that for purposes of applying section 401(b) there is no distinction between orders, rules and regulations. Indeed, NET counsel argued that the Preemption Order resulted from a rule-making, as opposed to an adjudicatory, proceeding. However, in its post-hearing memorandum, NET contends that the Court need not decide whether rules or regulations are enforceable under section 401 because the Preemption Order is “significantly different” from an FCC rule [NET Memorandum at 15].
. Sections 206 and 207 of the Communications Act, 47 U.S.C. § 206 & 207, expressly аuthorize certain private enforcement actions against common carriers. Section 206 provides as follows:
In case any common carrier shall do, or cause or permit to be done, any act, matter, or thing in this Act prohibited or declared to be unlawful, or shall omit to do any act, matter, or thing in this Act required to be done, such common carrier shall be liable to the person or persons injured thereby for the full amount of damages sustained in conse *956 quence of any such violation of the provision of this Act, together with a reasоnable counsel or attorney’s fee, to be fixed by the court in every case of recovery, which attorney’s fee shall be taxed and collected as part of the costs in the case.
Section 207 provides as follows:
Any person claiming to be damaged by any common carrier subject to the provisions of this Act may either make complaint to the Commission as hereinafter provided for, or may bring suit for the recovery of the damages for which such common carrier may be liable under the provisions of this Act, in any district court of the United States of competent jurisdiсtion; but such person shall not have the right to pursue both such remedies.
. For example, in
Schnapper v. Foley,
. In
Lorentz
v.
Westinghouse Electric Corp.,
. As used in the APA, “ ‘order’ means the whole or a part of a final disposition, whether affirmative, negative, injunctive, or declaratory in form, of an agency in a matter other than rule making but including licensing;” 5 U.S.C. §§ 551(6) & 701(b)(2) [emphasis added].
. After its amendment in 1910, 36 Stat. 555, and at the time the Communications Act was enacted, section 16(12) provided as follows:
If any carrier fails or neglects to obey any order of the commission other than for the payment of money, while the same is in effect, the Interstate Commerce Commission or any party injured thereby, or the United States, by its Attorney-General, may apply to the commerce court for the enforcement of such order. If, after hearing, that court determines that the order was regularly made and duly served, and that the carrier is in disobedience of the same, the court shall enforce obedience to such order by a writ of injunction or other proper process, mandatory or otherwise, to restrain such carrier, its officers, agents, or representatives, from further disobedience of such order, or to enjoin upon it or them obedience to the same.
. NET has provided the Court with copies of several recent orders in which other district courts have enjoined violations of the Preemption Order under section 401(b). In none of those orders were the requirements of section 401(b) discussed.
. The APA clearly contemplates the issuance of declaratory orders. 5 U.S.C. § 554(e). But since they are only as effective as other adjudicatory orders,
id,
they are not binding upon nonparties.
See Columbia Broadcasting System, Inc. v. United States,
. The Court is satisfied that the public interest would not be adversely affected by granting the TRO.
. Accordingly, the Court need not address the various other issues raised by the parties.
