Kansas City Power & Light Company v. Mckay

225 F.2d 924 (1955)

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Nature of the Case

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Facts

Ps are electric power utilities, supplying electric service to a large number of customers in Missouri, Kansas, and Arkansas, including rural electric distribution cooperatives to whom central station service is rendered. Ds are the Secretaries of the Interior, Agriculture and the Treasury and the Administrators of the Southwestern Power Administration ('SPA') and the Rural Electrification Administration ('REA'). SPA and REA have made contracts with five federated cooperatives to lend money for the construction of an electric generating plant and transmission lines, substations, transformers, and related facilities in certain described rural areas. Under the Rural Electrification Act, 7 U.S.C.A. § 901 et seq., the REA is empowered to make loans to cooperative associations for the purpose of 'financing the construction and operation of generating plants, electric transmission and distribution lines or systems for the furnishing of electric energy to persons in rural areas who are not receiving central station service'. Ps claim that these new contracts violated two federal statutes and sought injunctive relief from Ds lending or disbursing funds and an injunction from Ds doing anything in furtherance of an alleged plan by which SPA would in effect construct and acquire control of these generating and transmission facilities contrary to law. Ds moved to dismiss the complaint because they alleged that Ps did not have the capacity and did not show any injury or interest entitling them, to maintain the suit. The district court did not and tried the matter on the legality of the loans and ruled for Ds. Ps appealed.