Boston Edison Co. v. Department of Public Utilities

471 N.E.2d 54, 393 Mass. 244, 1984 Mass. LEXIS 1796
CourtMassachusetts Supreme Judicial Court
DecidedNovember 8, 1984
StatusPublished
Cited by5 cases

This text of 471 N.E.2d 54 (Boston Edison Co. v. Department of Public Utilities) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boston Edison Co. v. Department of Public Utilities, 471 N.E.2d 54, 393 Mass. 244, 1984 Mass. LEXIS 1796 (Mass. 1984).

Opinions

Liacos, J.

We have before us appeals from a series of orders issued by the Department of Public Utilities (department) in response to applications by Boston Edison Company (company) for approval of fuel charges for the billing months of February through July, 1982. G. L. c. 164, § 94G, as appearing in St. 1981, c. 375, § 4.

The company presents two primary arguments. It first challenges , as not supported by substantial evidence, what it characterizes as the department’s finding of a causal connection between the delayed return to service of Pilgrim Unit I nuclear power station (Pilgrim I) in April, 1982, following a refueling and maintenance outage, and the company’s modification work on two masonry walls in the unit during the outage. The company also contends that the department’s subsequent finding that replacement power costs for a portion of the outage were necessitated by that wall work is not supported in the record and is in conflict with evidence in the record. We affirm the orders.

The statutory context of the case is provided by the authority granted the department in G. L. c. 164, § 94G (a), to deduct from a fuel charge proposed for the next quarter the amount of those fuel costs determined to be directly attributable to a company’s unreasonable or imprudent performance; and, in § 94G (b), to deduct that amount determined to be directly attributable to the company’s defective operation of the unit.1 Each determination is to be made in light of the facts which the company knew or should reasonably have known at the time of the actions in question.

The factual background to these proceedings is as follows. In May, 1980, the Nuclear Regulatory Commission (NRC) [246]*246issued Bulletin 80-11, which required that the company demonstrate that certain walls in Pilgrim I could withstand the effects of forces produced by specified events. The company was instructed to analyze all safety-related walls, using new design criteria, and take corrective action on all walls which were inadequate to withstand the applicable loads. The company is a member of the New England Power Pool, which has established procedures that all members must follow when requesting and purchasing replacement power during an outage. Unscheduled outage power is invariably more costly, according to the department, than scheduled outage power. Nuclear units are entitled to six weeks of scheduled outage power a year. A variance, requesting additional scheduled outage time for non-routine outage tasks, may be requested up to sixty days before the beginning of a scheduled outage.

On August 15, 1980, the company requested a ten-week variance for the outage scheduled to begin on September 26, 1981, and to end on December 5, 1981. It did not submit a request for additional time until January 19, 1982. The outage ended in April, 1982. In January, 1982, the company initiated the proceedings at issue when it filed with the department an application for a fuel and purchased power billing factor for the months of February, March, and April (D.P.U. 1009-F), and in April, when it filed an application for approval of a factor for the period May through July, 1982 (D.P.U. 1009-G).

The department’s consideration of D.P.U. 1009-F encompassed both an examination of the company’s preparations for and its conduct during the outage through February 28, 1982.2 The department found that, considering what the company “knew or reasonably should have known about the complexity of the block wall work on July 26, 1981” (the deadline for requesting additional scheduled outage time), the company was unreasonable in not requesting additional time; and that the company’s “actions with respect to the untimely identification of. . . walls 111.3 and 111.6 (as ones requiring modifications) [247]*247were imprudent.” The department also included within its “findings” the statements that the company had ignored a problem regarding the scope of the modification work for approximately a year without justification; and that the “failure to confront this problem in a timely manner directly caused an eight-day delay in all start-up activities.” As a result, the department concluded that the costs for the eight-day delay should not be passed through to the company’s customers. It then directed that those fuel costs directly attributable to the company’s unreasonable actions be deducted, with interest, from the fuel charge for the following quarter.3

In D.P.U. 1009-G the department found no fuel costs in the proposed fuel factor to be directly attributable to any unreasonable or imprudent performance by the company during the period May through July, 1982. It then ordered that the company apply the difference between the amount directly attributable to the unreasonable actions ascribed to the period February through April,4 and the amount used in calculating the fuel charge for May,. June, and July, to the calculation for August through October, 1982.

The company, acting under the authority granted in G. L. c. 25, § 5, filed a petition for appeal with the Supreme Judicial Court for Suffolk County from the final decision, order and rulings of the department in D.P.U. 1009-F, 1009-F-l, and 1009-F-2; and a separate petition from the final decision, order, and rulings in D.P.U. 1009-G. A single justice reserved and reported the appeals, consolidated on motion of the company, while stating that the administrative records should not be treated as consolidated by allowance of the motion to consolidate.5

[248]*248The company first argues that the department’s finding in D.P.U. 1009-F of a causal connection between its work in February, 1982, on walls 111.3 and 111.6, and the return to service of Pilgrim I in April, 1982, is not supported by substantial evidence.

Initially, we note that the company misdescribes the findings. The department found that the company acted unreasonably about requesting additional time, and imprudently with respect to walls 111.3 and 111.6. It stated that the “failure to confront this problem [apparently referring to determining whether walls 111.3 and 111.6 required modifications] in a timely manner directly caused an eight-day delay in all start-up activities.” Thus, the department identified a direct causal connection to the delay in start-up activities, rather than to the unit’s return to service in April.* ***6 The distinction is of significance to the determination whether the finding of a causal connection is supported by substantial evidence.

Peter O’Brien, a construction manager in the company’s nuclear engineering department, testified that the delay in completing the outage was caused primarily by labor problems at the site and by the discovery of a significant amount of repair and reconstruction work, not anticipated prior to the outage, including modifications of masonry block walls. Lawrence McDonald, a consulting engineer, also stated that “we” knew on December 30 that work on the walls would extend the outage.

The walls at issue (111.3 and 111.6) were added to the project on January 22, 1982. Their addition was a matter of judgment and followed unsuccessful attempts to make a determination based upon an engineering analysis and evaluation. Work on 111.3 was completed on February 16, and work on 111.6 was completed on February 22.

[249]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hamm v. South Carolina Public Service Commission
352 S.E.2d 476 (Supreme Court of South Carolina, 1987)
Commonwealth Electric Co. v. Department of Public Utilities
491 N.E.2d 1035 (Massachusetts Supreme Judicial Court, 1986)
Fitchburg Gas & Electric Light Co. v. Department of Public Utilities
483 N.E.2d 76 (Massachusetts Supreme Judicial Court, 1985)
Boston Edison Co. v. Department of Public Utilities
471 N.E.2d 54 (Massachusetts Supreme Judicial Court, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
471 N.E.2d 54, 393 Mass. 244, 1984 Mass. LEXIS 1796, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boston-edison-co-v-department-of-public-utilities-mass-1984.