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03/15/56 Home Gas Company and the v. Federal Power Commission

March 15, 1956

IN RE IROQUOIS GAS CORPORATION AND TENNESSEE GAS TRANSMISSION CORPORATION, DOCKET NOS. 2310, ETC. OF THE FEDERAL POWER COMMISSION, TENNESSEE SOUGHT APPROVAL FOR A MAJOR EXPANSION OF ITS FACILITIES INTO THE GREATER NEW YORK MARKET, THEN SERVED BY TRANSCONTINENTAL GAS PIPELINE CORPORATION SOLELY. TRANSCONTINENTAL FILED A COMPETING APPLICATION, IN WHICH IT PROPOSED TO RENDER THE SAME OR SIMILAR SERVICE IN THE SAME AREA, TO THE EXCLUSION OF TENNESSEE. IT WAS IN THIS PROCEEDING THAT ROCKLAND AND CENTRAL HUDSON SOUGHT AND WERE GRANTED PERMISSION TO INTERVENE, URGING THAT ANY ORDER AUTHORIZING TENNESSEE'S ENTRY INTO THE GREATER NEW YORK AREA BE CONDITIONED UPON THE REQUIREMENT THAT TENNESSEE MAKE AVAILABLE AN ADDITIONAL FIRM SUPPLY OF NATURAL GAS TO ROCKLAND AND CENTRAL HUDSON.


Before EDGERTON, Chief Judge, and DANAHER and BASTIAN, Circuit Judges.

UNITED STATES COURT OF APPEALS DISTRICT OF COLUMBIA CIRCUIT.

HOME GAS COMPANY and The Manufacturers Light and Heat

Company, Petitioners, v.

FEDERAL POWER COMMISSION, Central Hudson Gas and Electric

Corporation, and Rockland Light and Power Company,

Respondents. 1956.CDC.36

Date Decided: March 15, 1956.

DECISION OF THE COURT DELIVERED BY THE HONORABLE JUDGE BASTIAN

BASTIAN, Circuit Judge.

This case is before the court on a joint petition by the Home Gas Company and The Manufacturers Light and Heat Company for review, under Section 19(b) of the Natural Gas Act, *fn1 of orders of the Federal Power Commission issued February 11, 1955, and April 4, 1955, as amended May 9, 1955, which orders directed Tennessee Gas Transmission Corporation to make connections and serve gas to Rockland Light and Power Company and Central Hudson Gas and Electric Corporation. Home and Manufacturers are wholly owned subsidiaries of The Columbia Gas System, Inc.

There is also before the court a petition under Section 19(b) which asks this court to direct the Commission to take additional testimony.

Home and Manufacturers are natural gas companies. Home supplies natural gas to Rockland and Central Hudson which it obtains from Manufacturers, its sole supplier. Rockland and Central Hudson sell gas on a retail basis to the ultimate consumer. Rockland is engaged in the distribution of natural gas in a number of communities in Orange and Rockland Counties, New York, the territories served being in rapidly growing sections of the New York City metropolitan area. Central Hudson is a New York corporation engaged in distributing gas and electricity in the Hudson River Valley, an area already fundamentally changed by way of increased population due to the recently completed New York State Thruway.

On December 28, 1954, the Commission disposed of all issues having to do with the applications of Tennessee and Transcontinental, except that it deferred decision on the issues presented by Rockland and Central Hudson until after oral argument thereon. Thereafter oral argument was had and on February 11, 1955, the Commission issued the following findings:

"(1) Tennessee Gas Transmission Company, a Delaware corporation, is a 'natural-gas company' within the meaning of the Natural Gas Act and subject to the ...


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