Biddeford and Saco Gas Co. v. Portland Gas Light Co.

233 A.2d 730, 1967 Me. LEXIS 249
CourtSupreme Judicial Court of Maine
DecidedOctober 4, 1967
StatusPublished
Cited by9 cases

This text of 233 A.2d 730 (Biddeford and Saco Gas Co. v. Portland Gas Light Co.) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Biddeford and Saco Gas Co. v. Portland Gas Light Co., 233 A.2d 730, 1967 Me. LEXIS 249 (Me. 1967).

Opinion

MARDEN, Justice.

On appeal by Biddeford and Saco Gas Company (Biddeford) from a majority decree of the Public Utilities Commission (Commission) consenting to Portland Gas Light Company’s (Portland) furnishing and extending its distribution of natural gas throughout York County and the denial of Biddeford’s petition for recognition of its alleged subsisting franchise and for cancellation of its authority granted by the Commission in 1960 to abandon gas distribution service.

The issues are framed by a petition on December 23, 1965, subsequently amended, by Portland for consent from the Commission to furnish and extend its services throughout York County. Biddeford was allowed to intervene in opposition to Portland’s petition. On February 3, 1966 Bid-deford filed a petition asking the Commission to recognize it as the holder of a subsisting franchise to distribute natural gas in York County and also asking an annulment of the Commission’s order of July 14, 1960 by which Biddeford had been authorized to abandon manufactured gas distribution services in the cities of Biddleford and Saco. Biddeford’s petition, for reasons discussed below, reserved the right to question the jurisdiction of the Commission in the premises. Portland, together with a subsidiary, Southern Maine Gas Company (Southern), later changing its name to Northern Utilities, Inc. (Northern), was allowed to intervene in opposition to the Bid-deford petition.

Southern was organized under the general corporation law (13 M.R.S.A. §§ 71-79) January 20, 1966 with a purpose to manufacture and sell gas, both manufactured and natural, “in any city or town within the State of Maine.” Southern’s name was changed to Northern on April 29, 1966.

By agreement, the petitions were heard together and the record consolidated. The evidence presented by Portland was offered and received on behalf, also, of Northern.

After the close of the record, Portland filed a motion that the Commission note a merger of certain other corporations, including Northern and Lewiston Gas Light Company, into Portland, and the change of the name of Portland to Northern. This motion was opposed by Biddeford and is denied by this Court. The posture of Portland and Biddeford are considered as the companies existed when the proceedings were instituted and the record made.

Because, in discussing this case, there is a distinction between grants to a corporation created by special act of the Legislature and purposes declared in certificates of organization under the general corporation law, on the one hand, and consent, in appropriate cases, by the Commission for such corporations to exercise the grants *733 from the Legislature and their declared purposes, on the other, we shall discuss “grants” and “purposes” as “powers” and the Commission consent as “authority” to exercise the purposes and powers.

The postures respectively of Portland and Biddeford were as follows.

Portland Gas Light Company originated by special act of the Legislature (Chapter 288, P & S L 1849) for the “manufacture and distribution of gas for the purpose of lighting the City of Portland” and empowered to provide this service for a term of thirty years. By successive legislative actions 1 it was empowered from time to time to increase its capitalization, its period of franchise was extended without limit, its power of distribution extended to natural gas and its service area extended to the cities of South Portland, and Westbrook, and the towns of Cape Elizabeth, Scarborough, Gorham, Windham, Falmouth, Cumberland and Yarmouth all in Cumberland County. This was Portland’s franchise stance as of December 23, 1965.

In the meantime and prior to December 31, 1965, by Commission approved financing Portland brought, at an aggregate cost of approximately two and one-half million dollars, natural gas to its franchise area by the acquisition of a gas transmission company which had brought the gas from Massachusetts into the Portsmouth, New Hampshire area, and by the construction of transmission lines across the New Hampshire-Maine border and thence to Portland. It had also procured an allotment of natural gas from the Federal Power Commission.

A predecessor to Biddeford was Saco and Biddeford Gas Light Company, established by Chapter 387, P & S L 1850, and empowered to manufacture and distribute gas “for the purpose of lighting the towns of Saco and Biddeford.” By successive special enactments of the Legislature 2 creating new companies, authorizing such new companies to take over the previous ones and extending their powers, York County Power Company (York), created by Special Act in 1913, by October 28, 1914, had authority to deal in gas within the County of York.

Cumberland County Power and Light Company (Cumberland) was created by Special Act (Chapter 256, P & S L 1907) and empowered to deal in gas within the Counties of York and Cumberland, except the towns of Sanford and Bridgton, and to acquire the rights of other public service corporations doing business in York. Cumberland acquired the property and franchise of York on June 30, 1923.

Meantime Central Maine Power Company (Central Maine) created by Special Act (Chapter 129, P & S L 1905), primarily for the generation and distribution of electricity, had been granted broadened purposes 3 and by instrument of merger dated June 30, 1942 and approved by the Commission November 30, 1942, absorbed Cumberland.

In addition to the approval by the Commission, Chapter 56, § 63 R.S. 1930, now 13 M.R.S.A. § 247, provided that such merger gave the surviving constituent corporation the franchise rights of the corporation merged into it.

Biddeford originated under the general corporation law in April of 1949 for the purpose of dealing with “gas in any form * * * to public and private consumers in the cities of Biddeford and Saco and the *734 towns of Kennebunk, Kennebunkport, North Kennebunkport, Wells, Sanford, York, Kit-tery, Eliot and Old Orchard Beach in the County of York, and the town of Scarborough, County of Cumberland.”

It is to be noted that the towns of Ber-wick, and North Berwick and South Ber-wick are not included.

By 35 M.R.S.A. § 2538 any company dealing in manufactured gas is empowered to deal in natural gas.

By joint petition of Central Maine and Biddeford, dated April 15, 1949 to Commission, Central Maine sought permission to transfer its gas properties and franchises, covering the municipalities named above, to Biddeford, which petition was granted by the Commission by final decree of April 25, 1949, and authority was granted Central Maine to sell and Biddeford to acquire gas business and franchises as requested.

Assuming, without finding, that Central Maine acquired special charter rights by absorbing Cumberland through a merger agreement and the application of 13 M.R. S.A. § 247, previously referred to, the relationship between Central Maine and Bidde-ford was not one of merger but of vendor-vendee.

Biddeford in fact from 1949 until July, 1960, manufactured and distributed gas in the cities of Biddeford and Saco.

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Bluebook (online)
233 A.2d 730, 1967 Me. LEXIS 249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/biddeford-and-saco-gas-co-v-portland-gas-light-co-me-1967.