US SUPREME COURT DECISIONS

This Court previously sustained the formula of the Federal Power Commission (FPC) for determining the tax component of respondent's cost of service, but remanded the cases (386 U.S. 237) with respect to whether it was significant in applying the formula that respondent had both jurisdictional and nonjurisdictional income. The Court of Appeals held that the issue had been sufficiently raised by respondent's petition for rehearing before the FPC, and that the formula required that consolidated tax savings be first allocated to respondent's nonjurisdictional income.

Held: Since the FPC did not disclose the basis for its order and did not "give clear indication that it has exercised the discretion with which Congress has empowered it," Phelps Dodge Corp. v. NLRB, 313 U. S. 177, 313 U. S. 197, the cases were not in the proper posture for judicial review, and should have been remanded to the FPC for further consideration.

Certiorari granted; 388 F.2d 385, reversed and remanded.