Atwood Resources, Inc. v. Public Utilities Commission

538 N.E.2d 1049, 43 Ohio St. 3d 96, 109 Oil & Gas Rep. 36, 1989 Ohio LEXIS 89
CourtOhio Supreme Court
DecidedMay 24, 1989
DocketNo. 87-1727
StatusPublished
Cited by8 cases

This text of 538 N.E.2d 1049 (Atwood Resources, Inc. v. Public Utilities Commission) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atwood Resources, Inc. v. Public Utilities Commission, 538 N.E.2d 1049, 43 Ohio St. 3d 96, 109 Oil & Gas Rep. 36, 1989 Ohio LEXIS 89 (Ohio 1989).

Opinion

Per Curiam.

Appellant presents eight propositions of law. Two relate to a matter not properly before us, and [98]*98six are without merit. Therefore, we affirm the order of the commission.

In its first two propositions of law, Atwood essentially argues that Columbia’s complaint fails to satisfy the requirements of R.C. 4905.26, which provides in part:

“Upon complaint in writing against any public utility by any person, firm, or corporation, or upon the initiative or complaint ■ of the public utilities commission, that any rate, fare, charge, toll, rental, schedule, classification, or service, or any joint rate, fare, charge, toll, rental, schedule, classification, or service rendered, charged, demanded, or exacted, or proposed to be rendered, charged, demanded, or exacted, is in any respect unjust, unreasonable, unjustly discriminatory, unjustly preferential, or in violation of law, or that any regulation, measurement, or practice affecting or relating to any service furnished by said public utility, or in connection with such service, is, or will be, in any respect unreasonable, unjust, insufficient, unjustly discriminatory, or unjustly preferential, or that any service is, or will be, inadequate or cannot be obtained, and, upon complaint of a public utility as to any matter affecting its own product or service, if it appears that reasonable grounds for complaint are stated, the commission shall fix a time for hearing * * * >>

Atwood first argues that R.C. 4905.26 is not applicable because it requires complaints to be brought against a public utility. Appellant reasons that since it does not fall within this class, the commission is without subject-matter jurisdiction. This argument has two shortcomings: As found below, Atwood is, in fact, a public utility; and, the commission has the authority to make that determination.

Second, Atwood argues that the commission has no authority to consider complaints between public utilities. Appellant implies that Columbia could only maintain an action against it if R.C. 4905.26 included the italicized words in the following phrase: “* * * upon complaint of a public utility against a public utility as to any matter affecting its own product or service * * *.” The activities of one public utility may be the “matter affecting * * * [a complaining utility’s] own product or service.” Thus, Atwood’s construction is too narrow, strips the statute of its usefulness (see Ohio Utilities Co. v. Pub. Util. Comm. [1979], 58 Ohio St. 2d 153, 157, 12 O.O. 3d 167, 169, 389 N.E. 2d 483, 486), and is otherwise at odds with our decisions that R.C. 4905.26 is broad in scope. See Western Reserve Transit Auth. v. Pub. Util. Comm. (1974), 39 Ohio St. 2d 16, 68 O.O. 2d 9, 313 N.E. 2d 811; and Allnet Communications Services, Inc. v. Pub. Util. Comm. (1987), 32 Ohio St. 3d 115, 512 N.E. 2d 350. Accordingly, we hold that R.C. 4905.26 contemplates actions by one public utility against another public utility.

Atwood next challenges Columbia’s standing on the basis that it suffered no actual damages because Simonds and Kurz-Kasch allegedly paid the minimum charge obligations under their agreements with Columbia. Whether these consumers fulfilled their contractual requirements, if any, is irrelevant. Here, the alleged damage pertains to economic loss to a regulated public utility and its consumers from sales displaced as a result of a natural gas producer’s unregulated activities. This type of direct effect on a public utility’s sales in a given area is sufficient to confer appellate standing (see East Ohio Gas Co. v. Pub. Util. Comm. [1988], 39 Ohio St. 3d 295, 297-298, 530 N.E. 2d 875, 877-878); [99]*99and, for purposes of standing before the commission, plainly satisfies the requirement of R.C. 4905.26 that the complained-of matter be one affecting a public utility’s own product or service.

Last, appellant argues that economic injury resulting from lawful competition cannot, in and of itself, confer standing on a damaged business to question the legality of its competitors’ operations unless the underlying statute or regulatory scheme is intended to protect the interest of a competitor. See Hardin v. Kentucky Utilities Co. (1968), 390 U.S. 1. Relying primarily on our decision in Dayton Communications Corp. v. Pub. Util. Comm. (1980), 64 Ohio St. 2d 302, 18 O.O. 3d 478, 414 N.E. 2d 1051, Atwood concludes that R.C. Title 49 does not protect Columbia’s competitive interests. Neither Hardin nor Dayton Communications Corp. is instructive here.

In Hardin, supra, the damaged private utility had no explicit statutory provision on which to rely for purposes of standing. Therefore, it was necessary for the United States Supreme Court to infer, from the area limitation contained in Section 15d of the Tennessee Valley Authority Act, that respondent came within the class the legislation was designed to protect. Here, it is unnecessary to look beyond the face of R.C. 4905.26. The General Assembly has specifically defined the class to be protected as public utilities whose own product or service is affected by any matter. Columbia is a member of the designated class.

In Dayton Communications Corp., supra, we upheld the commission’s refusal to consider the claims of a private telephone system supplier. We reasoned that under the terms set forth in R.C. 4905.26, the commission lacked jurisdiction over the prices charged by a public utility for the outright sale of equipment, including in-place cable and wires. The court has also recognized that the commission has limited authority to entertain allegations of anti-competitive practices where the pricing of a competitive product or service is involved. See Armco, Inc. v. Pub. Util. Comm. (1982), 69 Ohio St. 2d 401, 23 O.O. 3d 361, 433 N.E. 2d 923.

But, where a complaint alleges that a public utility is charging premium access rates while providing inferior access services, we have held that it was error for the commission to dismiss the action, regardless that it was brought by a competitor. See Allnet Communications Services, Inc. v. Pub. Util. Comm. (1988), 38 Ohio St. 3d 195, 527 N.E. 2d 840.

Here, as in Allnet, supra, the complained-of conduct relates to a matter that is properly subject to regulatory control through the complaint proceeding. Whether a natural gas producer’s activities constitute those of a public utility, whether it has complied with the applicable laws, and whether it should be subject to regulation, are questions that the commission has authority to determine under R.C. 4905.04, 4905.05 and 4905.06.

Columbia having alleged a matter affecting its own product or service, and having set forth reasonable grounds as required by R.C. 4905.26, we conclude that Columbia has standing.

In its third proposition of law, Atwood argues that the contracts with Simonds and Kurz-Kasch are private in nature and, therefore, beyond the jurisdiction of the commission. In support of this argument, it cites Kemme v. Cincinnati Gas & Elec. Co. (Dec. 22, 1982), PUCO No. 82-1362-GA-CSS. This case is readily distinguished.

In Kemme, a complaint was brought by two individuals alleging [100]

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Bluebook (online)
538 N.E.2d 1049, 43 Ohio St. 3d 96, 109 Oil & Gas Rep. 36, 1989 Ohio LEXIS 89, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atwood-resources-inc-v-public-utilities-commission-ohio-1989.