Bishop v. Public Service Company of New Hampshire

340 F. Supp. 520, 1972 U.S. Dist. LEXIS 14408, 1972 WL 232994
CourtDistrict Court, D. New Hampshire
DecidedMarch 30, 1972
DocketCiv. A. 72-35
StatusPublished
Cited by1 cases

This text of 340 F. Supp. 520 (Bishop v. Public Service Company of New Hampshire) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bishop v. Public Service Company of New Hampshire, 340 F. Supp. 520, 1972 U.S. Dist. LEXIS 14408, 1972 WL 232994 (D.N.H. 1972).

Opinion

OPINION AND ORDER ON MOTION TO DISMISS

BOWNES, District Judge.

Plaintiffs, all low-income purchasers of electricity in New Hampshire whose income is near or below the poverty level, challenge defendant’s proposed price increase. Jurisdiction is invoked and injunctive relief sought under § 210(a) of the Economic Stabilization Act of 1970, as amended by The Economic Stabilization Act Amendments of 1971, P.L. 92-210, 85 Stat. 748-750 (December 22, 1971). Declaratory relief is requested pursuant to 28 U.S.C. §§ 2201, 2202.

The matter is now before the court on defendant’s motion to dismiss on the grounds that plaintiffs are without standing and cannot maintain a class action; plaintiffs have failed to exhaust administrative remedies; primary jurisdiction does not rest in this court; and plaintiffs have failed to state a cause of action.

Plaintiffs have standing to challenge defendant’s proposed price increase and may maintain this action as a class action. Association of Data Processing Service Organizations v. Camp, 397 U.S. 150, 90 S.Ct. 827, 25 L.Ed.2d 184 (1970); F.R.Civ.P. 23.

There is no merit to defendant’s argument that the plaintiffs have failed to exhaust administrative remedies since there are no administrative remedies available to the plaintiffs. What the defendant really claims is that the plaintiffs have failed to invoke the necessary administrative procedures prior to bringing this action. The plaintiffs initially presented their claim to the New Hampshire Public Utilities Commission and, after that, filed a request for rulings with the Internal Revenue Service pursuant to 6 C.F.R. §§ 201.23, 401.10, 37 F.R. 1012-1013 (January 21, 1972). Section 210(a) of the Economic Stabilization Act provides:

Any person suffering legal wrong because of any act or practice arising out of this title, or any order or regulation issued pursuant thereto, may bring an action in a district court of the United States, without regard to the amount in controversy, for appropriate relief, including an action for a declaratory judgment, writ of injunction (subject to the limitations in section 211), and/or damages.

Nothing in the Act requires that administrative steps be taken prior to instituting suit in the Federal District Court. I find that the plaintiffs have complied with necessary administrative procedures.

Primary jurisdiction rests in this court, rather than any regulatory agency, because the factual question of the propriety of a price increase under Price Commission guidelines is not presented. Great Northern Railway Co. v. Merchants Elevator Co., 259 U.S. 285, 42 S.Ct. 477, 66 L.Ed. 943 (1922).

The issue, therefore, is whether the complaint states a claim against defendant upon which relief can be granted, and this depends on whether Price Commission regulations prohibit the defendant from raising electric prices on an interim basis.

The defendant filed a proposed price increase on July 8, 1971, to become ef *522 fective August 9, 1971. On July 14, 1971, the New Hampshire Public Utilities Commission suspended the price increase under N.H. RSA 378:6 which provides:

Suspension of Schedule. Pending any such investigation and the decision thereon, the commission shall have power, by an order served upon the public utility affected, to suspend the taking effect of said schedule and to forbid the demanding or collecting of the rates, fares, charges or prices covered by the schedule for such period or periods, not to exceed twelve months in all, as in the judgment of the commission may be necessary for such investigation. If for any reason the commission is unable to make its determination prior to the expiration of six months from the originally proposed effective date of said schedule, the public utility affected may place the filed schedule of rates in effect, pending expiration of such twelve months’ suspension period, upon furnishing the commission with a bond in such form and with such sureties, if any, as the commission may determine, to secure the repayment to the customers of the public utility of the difference, if any, between the amounts collected under said schedule of rates and the schedule of rates determined by the commission to be just and reasonable. [Emphasis added.]

The Public Utilities Commission did not make its determination prior to the expiration of the six month period, defendant filed a repayment bond with the intention of raising its prices on February 11, 1972, and plaintiffs filed their complaint with this court on February 14, 1972, seeking a ruling that federal regulations prohibited any price increase without good cause certification to the Price Commission. When the complaint was filed 6 C.F.R. § 300.16(i) (3) was the only regulation which governed interim price increases. It provided:

Notwithstanding any other provision of this section, no price of the kind covered by this paragraph (i) may be increased before the end of the maximum suspension period permitted by law unless the regulatory agency has certified to the Price Commission that there is good cause for an earlier effective date, together with its reasons therefor, and the Price Commission has approved that certification.

Under this regulation, the critical question was whether the “maximum suspension period permitted by law” is six months (with a bond) or twelve months. However, § 300.16(i) (3) was amended on March 17, 1972, 1 and a new section was added to the regulations on the same day. The new section, § 300.16a, provides, in pertinent part:

Interim rates. Any price increase that is authorized by law or order of a regulatory agency to go into effect after March 19, 1972, subject to accounting and refund, and before the issuance of further regulations on the subject by the Price Commission, may be put into effect without regard to this part. The Price Commission intends, within a short time, to issue regulations prescribing the conditions under which increases that are subject to accounting and refund will be treated. Those regulations, including any review and Price Commission actions authorized therein, will when issued, apply to increases authorized by this paragraph as well as to increases authorized after the regulations are issued. Section 300.16a(i).

The purpose of new regulation § 300.16a is to provide review of rate increases by federal and state regulatory agencies under rules issued by those agencies which would incorporate the *523 criteria set forth in § 300.16a(c) 2 Section 300.16 still governs some price increases, but will eventually be phased out. Section 300.16(a).

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Related

Bishop v. Public Service Co.
467 F.2d 510 (Temporary Emergency Court of Appeals, 1972)

Cite This Page — Counsel Stack

Bluebook (online)
340 F. Supp. 520, 1972 U.S. Dist. LEXIS 14408, 1972 WL 232994, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bishop-v-public-service-company-of-new-hampshire-nhd-1972.