Potomac Electric Power Company v. Interstate Commerce Commission and United States of America, Consolidated Rail Corporation, IntervenorPotomac Electric Power Company v. Interstate Commerce Commission and United States of America, Consolidated Rail Corporation, Intervenor
Potomac Electric Power Company (PEP-CO) seeks review of an order of the Interstate Commerce Commission (Commission) reopening a proceeding initiated in 1974 by appellant PEPCO to protest rates charged by intervenor-respondent Consolidated Rail
I. Commission Proceedings
The administrative proceedings leading to this appeal trace their ancestry to a complaint filed by appellant PEPCO with the Commission on December 23, 1974. In its complaint before the Commission, PEPCO attacked the lawfulness of freight charges levied by certain eastern railroads for hauling coal from various eastern mines to three of PEPCO’s electric generating stations in Maryland, located at Herbert (Chalk Point station), Woodzell (Morgantown station), and Dickerson (Dickerson station). In its first decision in these proceedings, issued more than two years later, the Commission held that neither the unit-train rates nor the trainload
1
rates to Chalk Point and Morgantown were shown to be unreasonable, but that the trainload rate for shipping coal to the Dickerson station was unjust and unreasonable in violation of section 1(5) of the Interstate Commerce Act.
2
Potomac Electric Power Co. v. Penn Central Transportation Co. (PEPCO I),
The proceeding was reopened for the limited purpose of determining the maximum trainload rates to be charged for service to the Dickerson station and the effect of that maximum rate on the structure of eastbound coal rates.
Id.
Subsequently, in proceedings not now on review, the Commission prescribed a revenue-to-variable cost ratio of 190 percent as the maximum trainload rate for coal shipped to the Dickerson station.
Potomac Electric Power Co.
v.
Penn Central Transportation Co. (PEPCO II),
PEPCO sought review in this court of the portion of the Commission’s decision in
PEPCO I
that affirmed the unit-train rates as not being unreasonable and that upheld Penn Central’s right to refuse to publish rates for unit-train service in carrier-supplied cars. We held that the Commission acted properly in refusing to order Conrail, successor to the Penn Central, to offer and publish the requested rates for unit-train service in carrier-supplied cars, but remanded the case to the Commission for further consideration of the unit-train rates at issue.
Potomac Electric Power Co.
v.
United States,
The Commission’s response to our mandate was to reopen the proceedings to consider new evidence and additional issues relating to the reasonableness of the contested rates.
Potomac Electric Power Co. v. Consolidated Rail Corp.,
No. 36114 (Sub-No. 1) (I.C.C. Apr. 10, 1979),
reprinted in Potomac Electric Power Co. v. Consolidated Rail Corp. (PEPCO IV),
Before this new standard was applied to the evidence submitted in this case, the Commission adopted yet another set of standards for determining maximum rates in coal shipments. Responding to our remand for further proceedings in
San Antonio, Texas v. United States,
Both PEPCO and Conrail appealed the ALJ’s decision to the Commission. Under the time limits imposed by
II. Jurisdiction to Review the Proceedings at This Stage
At the threshold we must determine whether this court has jurisdiction to hear PEPCO’s present appeal. We hold that it does. Jurisdiction over PEPCO’s present appeal could rest on four possible bases. The decision to reopen the proceedings could be construed to be a final order reviewable under
Under
The Commission argues that its decision to reject the methodology employed by the ALJ in his decision and its subsequent decision to reopen the proceedings for additional data preclude a finding of finality at this point. Brief for Respondent Commission at 11-14. We understand appellant PEPCO to say that the decision to reopen was arbitrary and capricious and, consequently, might be considered a final order because it affects PEPCO’s right to a timely decision under
An alternative reason for finding a' final order upon which to base this appeal relates to a provision of the Interstate Commerce Act,
There should be no doubt about our power to resolve this issue of statutory construction, as our power to do so follows from our paramount duty to determine whether we have jurisdiction.
See Land v. Dollar,
Nevertheless, we find it unnecessary to resolve this issue of statutory construction in order to establish our jurisdiction to consider PEPCO’s concerns over untimely deci-sionmaking. Because an affirmative response to PEPCO’s argument would compel us to address the merits of the ALJ decision
The question whether PEPCO’s right to a timely decision from the Commission has been violated can be reviewed through our inherent power to construe the mandate of our earlier decision.
Floersheim
v.
Engman,
The authority granted in
In summary, we find that the question whether the Commission has unreasonably delayed reaching a final decision is properly before us, either-because such delay violates our earlier mandate or because it jeopardizes our future review of the final Commission decision.
III. The Right to Timely Decisionmaking
At the heart of PEPCO’s present appeal is its demand for a final determination of the issues remaining unresolved in this prolonged proceeding. The initial complaint in this case was filed more than eight years ago, and contrary to the Commission’s assertion, Brief for Respondent Commission at 25, issues presented in the initial complaint remain unresolved. Although the Commission did find the disputed unit-train tariffs not to be unreasonable in its April 1, 1977 decision,
PEPCO I,
As noted above, PEPCO argues that
The concerns over long-delayed proceedings evident in the text of
The remedy ordered in
MCI
was predicated upon the authority conferred on courts in
Although our construction of our earlier mandate furnishes us with jurisdiction to fashion an appropriate remedy, we are also able to base our jurisdiction to do so on another ground. The power grounded in
From the record it appears that the Commission has understood its statutory responsibilities under
The parties are advised that once we establish procedural dates, we do not intend to postpone them. We intend to expedite a decision on the merits while according the parties an opportunity to present all relevant evidence regarding current rate/cost relationships.
PEPCO IV,
Sufficient time has elapsed that the Commission has now enunciated broad policy considerations affecting coal rate proceedings in
Ex Parte No. 347 (Sub-1)
and
Ex Parte 411.
These policy considerations can guide the Commission on a “case-by-case” basis, alleviating the effect of the lack of an overall methodology to govern coal rate cases.
See Ex Parte No. 347 (Sub-1),
46 Fed.Reg. 62,958 (1981).
Cf. MCI,
Our order today is for the Commission to reach a final decision in PEPCO’s and Conrail’s appeal within sixty days of the effective date of our order. It will be the Commission’s responsibility to schedule additional submissions from the. parties within that time limit, if it deems additional submissions necessary. While the remedy we ordered in
MCI
gave the agency in that case more flexibility to schedule further proceedings, today’s order reflects our belief that it is necessary to go further, despite the possible displacement of agency resources or the possible effect on other proceedings.
See Caswell v. Califano,
It is so ordered.
ORDER
Upon consideration of the petitioner’s motions for a stay of respondent Commis
ORDERED by the court that
(1) this court’s order filed on March 3 is hereby recalled;
(2) the order of the respondent Commission dated March 10, 1983 enforcing the court’s decision of March 1,1983 is hereby stayed; and
(3) the petitioner, respondents, and inter-venor are directed to meet with the Chief Staff Counsel of the court to reach an agreement on the amount of time reasonably needed to respond to the coal rate guidelines announced by respondent Commission on February 24, 1983.
SUPPLEMENTAL OPINION
On March 1, 1983 the court ordered the Interstate Commerce Commission (“Commission”) to decide the appeals of Potomac Electric Power Co. (“PEPCO”) and Conrail in ICC Docket No. 36114 (Sub No. 1) within sixty days. By an order dated March 10, 1983 the Commission set a deadline of April 6, 1983 for the submission of additional evidence directed to two parts of coal rate guidelines proposed in Ex Parte 347 (Sub No. 1) on February 24, 1983, only five days before the court’s decision. PEP-CO now moves this court for a stay of the Commission’s order of March 10, 1983 and for clarification and modification of this court’s March 1,1983 decision to require the Commission to decide the appeal from the initial decision based on the evidence before it, including the appeal from the initial decision, and the former proposed guidelines for coal rates in Ex Parte 347 (Sub No. 1).
PEPCO is in the awkward position of having received what it requested, Brief for • Appellant at 31, and now is seeking a modification of the court’s opinion. Still, PEP-CO’s position has some merit. In the course of these proceedings the Commission has continually shifted its position on the substantive rules to be applied in determining the reasonableness of coal rates.
See Potomac Electric Power Co. v. Consolidated Rail Corp.,
The state of the record at the time of oral argument, October 14, 1982, suggested that a decision could be reached on the appeal from the initial decision based on existing submissions and supplemental briefings directed at the issues raised by the initial decision. See Reply Brief for PEPCO at 8-11. The methodology that appeared to govern the Commission’s reasoning was that expressed in Ex Parte 347 (Sub No. 1) (Interim Decision), announced on December 29, 1981. See 46 Fed.Reg. 62,958. This December 29, 1981 decision rejected the ton/ton-mile methodology, apparently in favor of the earlier ratio method for allocating expenses. See at 1029-1030 & n. 6. ALJ Browning’s opinion made clear, however, that submissions were made in the initial proceeding based on both the ratio and ton/ton-mile methodology. See Initial Decision of ALJ Browning in Docket No. 36114 (Sub No. 1) at 10. Because the record already included submissions utilizing the ratio method, the sixty-day time limit for deciding the appeal seemed attainable, even if some effort would be required to reach a decision within that time.
Five days before the court issued its opinion, however, the Commission announced proposed new guidelines in Ex Parte 347 (Sub No. 1) for determining maximum rates on captive coal traffic. Since PEPCO had asked to be given until April 15, 1983 to respond with new submissions, PEPCO would have little basis for its present motions, had the Commission’s March 10 order been confined only to the issues presented
The basic question is whether the imposition of entirely new standards is outside the mandate of this court’s order in its March 1 opinion. The Commission’s position that its order is within the scope of the court’s opinion is reasonable. The opinion states “this order respects the Commission’s discretion to have the final say regarding the rate methodology to be applied to PEPCO’s complaint.” At 1035. As the case was presented to this court, this grant of discretion was necessary. What was before the court was the issue of Commission delay, not the appropriateness of the rate methodology to be applied to the rate complaint.
The revocation of the interim standards in Ex Parte 347 (Sub No. 1) makes the central issue in PEPCO’s motions the very short timetable for submitting new data in response to the new rate guidelines. Though PEPCO should not be completely surprised by the imposition of these new standards, since it is aware of them from a similar proceeding, see Affidavit of Robert Hines at 8-9, the difficulty in responding to the Commission’s order seems apparent. In addition, the possibility that new rate methodology might be imposed by the Commission was not unforeseen in the court’s opinion. Yet the fact of the new guidelines’ existence or their apparent complexity was not known to this court prior to the issuance of the opinion. Instead, the opinion contemplated an uncomplicated process for updating the record. Thus, the court’s expectation that the record could simply be updated based on existing submissions indicates that the sixty-day limit previously imposed is no longer an appropriate limit to impose upon the Commission.
PEPCO asks this court to order the Commission to confine itself to the existing record, allowing only for submissions absolutely necessary to decide the appeal on the existing record. This request, however, overlooks the doctrine of primary jurisdiction and the limitations upon this court’s power to control matters statutorily relegated to the Commission’s discretion. See Conrail Response to Emergency Motion at 4. The Commission’s primary jurisdiction over rates includes the power to develop methods for determining the reasonableness of rates. Thus, the remedy requested by PEPCO should not be granted.
The only remedy available to the court in the circumstances is to extend the time limit the court imposed on the Commission, even though PEPCO specifically disavows any interest in this relief. The purpose of the sixty-day time limit was to force the Commission to meet its statutory responsibilities to render a decision on PEPCO’s appeal. But the strict timetable no longer makes sense, and it would ill serve the parties, the Commission, and the public interest in timely decision-making to force compliance with the previous time limit. The court still expects the Commission to reach a decision in PEPCO’s appeal within a reasonable time, but it will not attempt to impose an absolute deadline until the parties have had an opportunity to discuss their respective requirements with Chief Staff Counsel.
It is so ordered.
Notes
. In the vernacular of the Commission, a unit-train is “the repeated movement of dedicated cars as a single unit.” Investigation of Railroad Freight Rate Structure Coal,
. Section 1(5) of the Interstate Commerce Act was recodified as
. Reparations are awarded by the Commission under authority granted it in
. Fully allocated costs have been defined by the Commission to represent “that level of expenses which represents the sum of ‘variable costs’ plus an appropriate allocation of fixed expenses, i.e., an allocation which assigns an adequate portion of fixed expenses to the movement of traffic on which the rate in issue applies.” Rules to Govern the Assembling and Presenting of Cost Evidence,
. Differential pricing is a practice that allows a rail carrier to charge different shippers different rates, depending on the amount of competition a rail carrier faces from other traffic modes. By allowing a margin of 7 percent over fully allocated costs, the Commission permitted a carrier to obtain extra profits on less competitive traffic to make up for lower earnings garnered where competition was more intense.
See San Antonio, Texas v. United States,
. The Commission has described the differences between the two methods as follows:
Under both the ratio and ton/ton-mile method, the railroad’s expenses are initially separated between those that can be directly related to specific movements (variable costs) and those that are related to the entire system operation (constant costs). Under the ratio method, the constant costs are then distributed among specific movements in proportion to revenue generated by those movements. Under the ton/ton-mile method, the constant costs are further divided into those associated with terminal operations, and those that are associated with line-haui service. The former are then allocated to specific movements in proportion to tons originated and terminated, and the latter are allocated to specific movements in proportion to tons times distance traveled, that is, ton-miles.
Coal Rate Guidelines Nationwide [Ex Parte No. 347 (Sub-1)], 45 Fed.Reg. 80, 370, 80,372 n. 4 (Proposed Guidelines Dec. 4, 1980).
. See
. Respondent Commission argues that local rule 13(d) precludes a finding that we have jurisdiction in this appeal. Brief of Respondent Commission at 25 n. 19. Local rule 13(d) provides in part:
If the CASE, is remanded, this court does not retain, jurisdiction, and a new Notice of Appeal or Petition for Review will be necessary if a party seeks review of the remand proceedings.
We note that this rule only makes clear that a remand of a case requires new jurisdictional grounds to be established if an appeal is taken after the remand of the case. The rule in no way circumscribes this court’s power to construe its own mandate that led to the remand.
. H.R. 10979 passed the House on December 17, 1975. 121 Cong.Rec. 41, 404 (1975). The Senate bill, S. 2718, was then called up, id, and approved after the text of H.R. 10979 was substituted for the text passed by the Senate. Id. at 41, 429.
. See 121 Cong.Rec. 38, 487, 41, 343, 41, 397 (1975) (remarks of Senator Thurmond, Congressmen Hastings and Conte, respectively).
. Cf. Potomac Electric Power Co. v. Consolidated Rail Corp.,