Define: Sierra-Mobile Doctrine

Sierra-Mobile Doctrine
Sierra-Mobile Doctrine
Quick Summary of Sierra-Mobile Doctrine

In 1956, two court cases established the Sierra-Mobile doctrine, which prohibits natural gas companies from increasing their prices unless their contracts permit it or if the current price is low enough to potentially harm the public.

Full Definition Of Sierra-Mobile Doctrine

The Sierra-Mobile doctrine, also known as the Mobile-Sierra doctrine, is a principle that prohibits the Federal Energy Regulatory Commission from approving a rate increase for a natural-gas producer unless the producer’s contract allows for it. Alternatively, the existing rate must be so low that it could harm the public interest, such as by threatening the continued operation of the public utility to provide its service. For example, if a natural-gas producer has a contract with a utility company that specifies a fixed rate for a certain period, the producer cannot increase the rate unless the contract allows for it. However, if the existing rate is so low that it could harm the public interest, the Federal Energy Regulatory Commission may approve a rate increase to ensure the continued operation of the public utility. The Sierra-Mobile doctrine was established in two cases: United Gas Pipe Line Co. v. Mobile Gas Serv. Corp. and Federal Power Comm’n v. Sierra Pac. Power Co. These cases set the precedent that the public interest must be considered when approving rate increases for natural-gas producers.

Sierra-Mobile Doctrine FAQ'S

The Sierra–Mobile Doctrine is a legal principle that allows a state to regulate conduct occurring outside its borders if that conduct has a substantial effect within the state.

Under the Sierra–Mobile Doctrine, a state can regulate pollution or other environmental harm that originates outside its borders but has a significant impact within the state.

Yes, a state can use the Sierra–Mobile Doctrine to regulate the activities of out-of-state businesses if those activities have a substantial impact within the state.

The Sierra–Mobile Doctrine is subject to limitations based on principles of federalism and the Commerce Clause of the U.S. Constitution.

Yes, the Sierra–Mobile Doctrine can be used to regulate online activities if those activities have a substantial impact within the state.

The Dormant Commerce Clause prohibits states from discriminating against or unduly burdening interstate commerce, while the Sierra–Mobile Doctrine allows states to regulate out-of-state conduct that has a substantial impact within the state.

Yes, the Sierra–Mobile Doctrine can be used to regulate personal conduct if that conduct has a substantial impact within the state.

The Sierra–Mobile Doctrine is based on a series of U.S. Supreme Court cases, including Sierra Club v. Morton and Hughes v. Oklahoma.

Yes, the Sierra–Mobile Doctrine can be used to regulate the activities of foreign entities if those activities have a substantial impact within the state.

The Sierra–Mobile Doctrine can impact conflicts of law by allowing a state to assert jurisdiction over out-of-state conduct that affects the state.

Related Phrases
Mobile Sierra Doctrine
Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 30th April 2024.

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