US SUPREME COURT DECISIONS

1. On a petition to review a natural gas rate reduction order of the Federal Power Commission under the Natural Gas Act, a Court of Appeal may not consider, sua sponte, an objection which has not been urged before the Commission in the application for rehearing prescribed by § 19 of the Act. Pp. 348 U. S. 493-501.

(a) Respondent's application for a rehearing by the Commission did not object to the validity of the condition which the Commission had written into its certification of a merger between respondent and another gas company, and respondent thus did not meet the requirements of § 19(b). Pp. 348 U. S. 497-498.

(b) Respondent's application not having met the.requirements of § 19(b), and respondent itself being barred from attacking the validity of the merger condition in the Court of Appeals, that Court is precluded, by the terms of § 19, from raising, considering, or sustaining the same objection sua sponte. Pp. 348 U. S. 498-499.

(c) Section 10(e) of the Administrative Procedure Act does not require a different result. Pp. 348 U. S. 499-500.

(d) The requirements of § 19(b) cannot be disregarded under a claim that to limit judicial review by the Court of Appeals to objections previously urged specifically before the Commission will prevent that Court from reviewing effectively the "end result" of natural gas rate orders. P. 348 U. S. 501.

2. On a petition to review a natural gas rate reduction order of the Federal Power Commission under the Natural Gas Act, a Court of Appeals may not invalidate, sua sponte, an existing order of the Commission which prohibits the inclusion of certain operating expenses of the natural gas company in its cost of service where such order not only has been proposed and acquiesced in by the company, but has been imposed on it by the Commission as a condition of a merger under which the company is operating. Pp. 348 U. S. 493-494, 348 U. S. 501-502. chanrobles.com-red

Page 348 U. S. 493

3. A contention of respondent that, under the Commission's allocation of gasoline costs and the condition requiring the company to absorb them, the rate of return is reduced from 5.75% to 5.01%, and is therefore unreasonable and confiscatory, is not sustained. P. 348 U. S. 502.

209 F.2d 717, 732, reversed.

On respondent's petition to review an order of the Federal Power Commission under the Natural Gas Act, 95 P.U.R. (N. S.) 97, the Court of Appeals reversed the Commission's order and remanded the cause for further proceedings. 209 F.2d 717, 732. This Court granted the Commission's petition for certiorari. 347 U.S. 1009. Reversed, p. 348 U. S. 502.