Berkeley County Public Service Sewer District v. West Virginia Public Service Commission

512 S.E.2d 201, 204 W. Va. 279, 1998 W. Va. LEXIS 217
CourtWest Virginia Supreme Court
DecidedDecember 11, 1998
Docket25007, 25008
StatusPublished
Cited by12 cases

This text of 512 S.E.2d 201 (Berkeley County Public Service Sewer District v. West Virginia Public Service Commission) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berkeley County Public Service Sewer District v. West Virginia Public Service Commission, 512 S.E.2d 201, 204 W. Va. 279, 1998 W. Va. LEXIS 217 (W. Va. 1998).

Opinion

McCUSKEY, Justice:

The parties to this proceeding are engaged in a tug-of-war over the right to provide water and sewer utility service to a newly developed tract of land located in Berkeley County, West Virginia. On one end of the struggle are the appellants, Berkeley County Public Service Sewer District (“Sewer District”) and Opequon Public Service District (“Water District”). On the opposite end is the appellee, the City of Martinsburg (“City”). The parties’ respective arguments were aired before the Public Service Commission of West Virginia (“PSC”). In its final order, the PSC awarded the right to serve the contested tract to the City. On appeal from that ruling, we are asked to decide which entity, between a city and a public service district, has the superior right to extend its facilities to provide utility service to a previously unserved tract of real estate, located within the district, when that tract has been annexed into the city. The appellants request that we reverse the PSC’s order. We conclude that W.Va.Code § 16-13A-8 (1981) controls the outcome of this dispute and that the PSC’s award of service rights to the City was consistent with that statute. We find, however, that although the result reached by the PSC was correct, the PSC erroneously discarded W.Va.Code § 16-13A-8 in making its analysis, and, for that reason, we affirm the final holding of the PSC under the rationale hereinafter set forth.

I.

Factual Background

These consolidated cases concern a tract of about 13 acres, located in Berkeley County, West Virginia and owned by Picerne Development (“Picerne”). 1 On that tract stands a 204 unit apartment complex, known as Martin’s Landing, which was recently built by Picerne. The tract lies inside the City’s municipal limits. The tract also lies inside the geographic boundaries of both the Water District and the Sewer District. These overlapping borders, of the City and the Districts, have led to the instant conflict over service rights.

The boundaries of each public service district were defined by the County Commission of Berkeley County (“County Commission”) in its orders creating and, in the case of the Water District, enlarging, the districts. The order creating the Sewer District, entered April 10,1979, delineates “the territory to be embraced by this public service district” as “all of Berkeley County, West Virginia.” The order creating the Water District, entered January 20, 1961, described it as “embracing ... the territorial limits of Opequon Magisterial District of Berkeley County, West Virginia.” The Water District’s bor *282 ders were subsequently expanded by the County Commission, by order entered December 3, 1965, to encompass part of Hedg-esville Magisterial District, including the tract occupied by Martin’s Landing. Pursuant to that order, the Water District’s territory was enlarged “to more nearly coincide with its service area authorized heretofore by the Public Service Commission.” The Water District’s “service area,” at that time, was established in a PSC order, issued December 27, 1961, granting the Water District a certificate of public convenience and necessity 2 to provide public water service throughout Ope-quon Magisterial District and in a portion of Hedgesville Magisterial District, including the 13 acre tract now at issue.

On May 3, 1990, long after the creation of both public service districts, and the enlargement and certification of the Water District, the 13 acre tract was annexed into the City. This was accomplished by a minor adjustment of the City’s boundaries, in accordance with W.Va.Code § 8-6-5 (1989). 3 As a result of the annexation, the tract in question was “included within the corporate limits of the City of Martinsburg, West Virginia.” 4

The proceedings below were initiated by the Sewer District and Water District through the filing of separate complaints with the PSC against the City, on April 4, 1996, and May 30, 1997, respectively. Each district alleged that Martin’s Landing was located within its “franchise area,” and sought an order barring the City from providing the utility service available from the district to Martin’s Landing and directing the district to provide such service to Martin’s Landing if Picerne applied for it.

The separate proceedings were consolidated by the PSC, by an order entered July 15, 1996, and referred, pursuant to that order, for decision by a PSC Administrative Law Judge. On September 26, 1996, a public hearing in the consolidated proceedings was conducted by the PSC’s Chief Administrative Law Judge. During the hearing, the parties presented exhibits and the testimony of various witnesses. The parties and PSC Staff Counsel subsequently filed legal briefs, and on December 20, 1996, the Administrative Law Judge issued a Recommended Decision dismissing both complaints. The ALJ reasoned that because the City operates a combined waterworks and sewage system, as defined in W.Va.Code § 8-20-1 (1969), 5 and *283 because Picerne’s property is within a twenty-mile radius of the City, the City has an absolute right, under that statute, to serve Martin’s Landing.

In response to the Recommended Decision, exceptions were filed by the districts and by the PSC’s Staff Attorney. After considering the exceptions, and the City’s response to the exceptions, the PSC issued a unanimous order finding in favor of the City and dismissing the complaints. In that order, dated July 25,1997, the PSC rejected the ALJ’s analysis of W.Va.Code § 8-20-1 and held that “once the annexation occurred, the provisions of West Virginia Code § 16-13A-8 prohibit the Districts from providing service in the disputed area without the City’s consent.”

Petitions for reconsideration and rehearing of the PSC’s decision were filed by the districts and PSC Staff, and the City filed a response to the petitions. On October 22, 1997, the PSC issued a Commission Order on Reconsideration, reaching the same result as its original order, that is, the dismissal of both complaints. In the Order on Reconsideration, which was a 2-1 decision, the majority retracted some of the legal conclusions contained in its first order and offered a new rationale for permitting the City to serve Picerne’s property. The PSC majority reasoned, in part:

As this dispute involves the application of at least two conflicting statutes ['W.Va.Code § 16-13A-8 and W.Va.Code § 16-13A-2] from which legislative intent applicable to these facts cannot be discerned, ... it is within this Commission’s authority to resolve this ease.

Having found irreconcilable conflict between what it perceived to be applicable statutes, the PSC proceeded to hold that, as between the districts and the City, the City *284 has the right to provide water and sewer service to Martin’s Landing.

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Cite This Page — Counsel Stack

Bluebook (online)
512 S.E.2d 201, 204 W. Va. 279, 1998 W. Va. LEXIS 217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berkeley-county-public-service-sewer-district-v-west-virginia-public-wva-1998.