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Simple English definitions for legal terms
Mobile–Sierra doctrine
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A quick definition of Mobile–Sierra doctrine:
The Mobile-Sierra doctrine is a rule that says the Federal Energy Regulatory Commission cannot increase the rates that a natural gas producer charges unless the producer's contract allows for it or if the current rate is so low that it could harm the public. This rule was established by two court cases in 1956. It is also sometimes called the Sierra-Mobile doctrine.
A more thorough explanation:
The Mobile-Sierra Doctrine is a principle that states that the Federal Energy Regulatory Commission (FERC) cannot grant a rate increase to a natural gas producer unless the producer's contract allows for a rate increase or if the current rate is so low that it could harm the public interest.
For example, if a natural gas producer has a contract with a utility company that states the rate cannot be increased without both parties agreeing, FERC cannot grant a rate increase without the consent of both parties. However, if the current rate is so low that it could harm the public interest, FERC may grant a rate increase to ensure the continued viability of the public utility to continue its service.
The Mobile-Sierra Doctrine was established in two Supreme Court cases: United Gas Pipe Line Co. v. Mobile Gas Serv. Corp. and Federal Power Comm'n v. Sierra Pac. Power Co. The doctrine is also known as the Sierra-Mobile Doctrine.