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FPC V. MEMPHIS LIGHT, GAS & WATER DIV., 411 U. S. 458 (1973)

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U.S. Supreme Court

FPC v. Memphis Light, Gas & Water Div., 411 U.S. 458 (1973)

Federal Power Commission v. Memphis

Light, Gas & Water Division

No. 72-486

Argued March 27, 1973

Decided May 7, 1973*

411 U.S. 458

Syllabus

Section 441 of the Tax Reform Act of 1969 does not deprive the Federal Power Commission of the authority to permit a utility that is subject to its jurisdiction under the Natural Gas Act to change the depreciation method that it uses for purposes of ratemaking from accelerated depreciation with "flow through" of the utility's tax savings to customers to accelerated depreciation with normalization (where the income tax expense allowed in the cost of service is computed on a straight-line depreciation basis) with respect to pre-1970 property as well as replacement property. Pp. 411 U. S. 465-474.

149 U.S.App.D.C. 238, 462 F.2d 853, reversed and remanded.

DOUGLAS, J., delivered the opinion for a unanimous Court. chanroblesvirtualawlibrary

Page 411 U. S. 459





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