United Gas Pipe Line Company v. Federal Power Commission, Memphis Light, Gas & Water Division, Intervenor (Two Cases)

AINSWORTH, Circuit Judge:

In this matter, which involves the fixing of just and • reasonable rates and charges for a natural gas company by the Federal Power Commission, the question for decision is whether the Commission made a proper allowance for federal income taxes in calculating United Gas Pipe Line Company’s (United’s) cost of service in the test period involved.

The matter has been before us before when we held that the Commission’s order used an incorrect income tax rate in computing cost of service in fixing United’s gas rates and should, therefore, be vacated and set aside. (357 F.2d…