Beaver Creek Cooperative Telephone Co. v. Public Utility Commission

50 P.3d 1231, 182 Or. App. 559, 2002 Ore. App. LEXIS 1077
Court of Appeals of Oregon·Decided July 17, 2002·No. 00-068; A109890·Published·Cited by 10 cases

Opinion

*561 HASELTON, P. J.

Petitioner Beaver Creek Cooperative Telephone Company (Beaver Creek) seeks judicial review pursuant to ORS 183.400 of three rules adopted by the Oregon Public Utility Commission (PUC). Two of those rules, OAR 860-032-0010(4) and (5), require cooperatives seeking to provide local exchange telecommunications service within the boundaries of the local exchanges of other telecommunication services providers to obtain a certificate of authority as “competitive providers” under ORS 759.020. The third rule, OAR 860-032-0007(15), requires all holders of certificates of authority issued by the PUC to pay certain fees, taxes, and assessments. 1 Beaver Creek argues, inter alia, that those rules are ultra vires because ORS 759.020 does not apply to cooperatives. We reject that contention, as well as various federal preemption arguments that Beaver Creek raises. Consequently, we hold the challenged rules valid. 2

In September 1999, the PUC initiated a proceeding to comprehensively update and revise its rules regarding the provision of competitive intrastate telecommunication services. Included in the proposed revisions were the three rules at issue in this review. The first two challenged rules, OAR 860-032-0010(4) and (5), require any cooperative operating within the local exchange boundaries of another telecommunications utility or cooperative to obtain a certificate of authority as a competitive provider under ORS 759.020. OAR 860-032-0010(4) provides:

“Local exchange telecommunications service provided by a telecommunications utility or a cooperative within the boundaries of local exchanges belonging to another telecommunications utility or cooperative, which exchanges are *562 defined pursuant to ORS 759.005(2)(c), shall be considered the operations of a competitive provider, and may only be provided pursuant to a certificate of authority granted by the Commission under ORS 759.020. Such service shall be considered operations of a competitive provider without regard to the manner the provider treats those operations.” 3 (Emphasis added.)

OAR 860-032-0010(5) provides:

“Telecommunications services provided by a telecommunications utility or a cooperative pursuant to a certificate of authority granted under ORS 759.020, wherein the provider was classified as a competitive provider for purposes of providing those services, shall be considered the operations of a competitive provider without regard to the manner the provider treats those operations.” (Emphasis added.)

The third challenged rule, OAR 860-032-0007(15), 4 requires all holders of certificates of authority issued by the PUC to pay certain fees, taxes, and assessments. Beaver Creek argues that the PUC, in adopting each of those rules, exceeded the scope of its statutory authority and that the rules are consequently invalid.

At the core of this rule challenge is the proper relationship between two statutes, ORS 759.020 and ORS 759.025. ORS 759.020 provides, in part:

“(1) No person, corporation, company, association of individuals or their lessees, trustees, or receivers shall provide intrastate telecommunications service on a for-hire basis without a certificate of authority issued by the Public Utility Commission under this section.
*563 «H? H* ‡ ‡ ‡
“(3) Except as provided in ORS 759.050, no certificate shall authorize any person to provide local exchange telecommunications service within the local exchange telecommunications service area of a telecommunications utility unless such utility consents, is unable to provide the service, or fails to protest an application. This subsection shall not apply to any application for a certificate by a provider of shared telecommunications services.
«Hi H* * * *
“(5) The commission may classify a successful applicant for a certificate as a telecommunications utility or as a competitive telecommunications services provider. If the commission finds that a successful applicant for a certificate has demonstrated that services it offers are subject to competition or that its customers or those proposed to become customers have reasonably available alternatives, the commission shall classify the applicant as a competitive telecommunications services provider. The commission shall conduct the initial classification and any subsequent review of the classification in accordance with such procedures as the commission may establish by rule, after hearings. The commission may attach reasonable conditions to such classification and may amend or revoke any such order as provided in ORS 756.568.” (Emphasis added.)

ORS 759.025, in turn, provides:

“(1) Notwithstanding ORS 759.020, the Public Utility Commission shall issue to any person, company or corporation providing intrastate telecommunications services that are subject to regulation by the commission on January 1,1986, a certificate of authority to continue to provide those services on and after January 1,1986.

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Beaver Creek Cooperative Telephone Co. v. Public Utility Commission, 50 P.3d 1231, 182 Or. App. 559, 2002 Ore. App. LEXIS 1077 (Or. Ct. App. 2002).

50 P.3d 1231 (Beaver Creek Cooperative Telephone Co. v. Public Utility Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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