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City of Fort Pierce v. FERC, 730 F.2d 778, 785-86 (D.C. Cir.
1984).
I note that the ban here is simply on differences in rates,
an issue normally addressed under statutory language barring
discrimination.
So it is at least anomalous that the
Commission here relies on § 201(b), which says nothing about
discrimination, rather than § 202(a), which does. The only
reason I can discern is that the Commission’s interpretation of
§ 202 was more clearly established, and obviously didn’t ban
reasonable discriminations. Accordingly, the Commission
jumped over to § 201(b), about which it had said relatively
little.
In the passage where the Order claims support from
§ 201(b), the Commission appears to acknowledge that it has
never interpreted that section to support a sweeping ban on
quality-of-service premiums, but, speaking of its antidiscrimination decisions (evidently under both §§ 201(b) and
202(a)), it says that “none of those precedents involved
practices that the Commission has twice found threaten to
create barriers to broadband development that should be
removed under section 706.” Order ¶ 292. This is an odd
form of statutory interpretation. Finessing any effort to fit the
agency action within the statutory language, it only claims
that the banned practice threatens broadband deployment.
Maybe the theory works, but it can do so only by a sturdy
showing of how the banned conduct posed a “threat.” As
we’ll see, the Commission has made no such showing, let
alone a sturdy one.
Indeed, I can find no indication—and the Commission
presents none—that any of the agencies regulating natural
monopolies, such as the Interstate Commerce Commission,
Federal Energy Regulatory Commission, or Federal
Communications Commission—has ever attempted to use its
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