Central Illinois Public Service Co. v. Illinois Commerce Commission

560 N.E.2d 363, 202 Ill. App. 3d 567
CourtAppellate Court of Illinois
DecidedJuly 19, 1990
DocketNo. 4-89-0982
StatusPublished
Cited by4 cases

This text of 560 N.E.2d 363 (Central Illinois Public Service Co. v. Illinois Commerce Commission) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Illinois Public Service Co. v. Illinois Commerce Commission, 560 N.E.2d 363, 202 Ill. App. 3d 567 (Ill. Ct. App. 1990).

Opinion

JUSTICE STEIGMANN

delivered the opinion of the court:

Defendants, the Illinois Commerce Commission (Commission) and Southwestern Electric Cooperative, Inc. (Southwestern), appeal the circuit court’s reversal of a finding by the Commission that it had authority to resolve an action filed by Southwestern, alleging a violation of the Electric Supplier Act (Act) (Ill. Rev. Stat. 1987, ch. 111⅔, par. 401 et seq.) by Central Illinois Public Service Company (CIPS).

We reverse the circuit court and affirm and reinstate the Commission’s order.

On February 6, 1968, Southwestern and CIPS entered into a service-area agreement which delineated the areas each electrical supplier was entitled to serve. Two oil leaseholds, T.C. Clow (Clow) and Buzzard Brothers (Buzzard), were located in the Louden oil field and within Southwestern’s designated territory. On May 9, 1986, these leaseholds were assigned to the Exxon Corporation (Exxon).

On February 26, 1987, Exxon disconnected the electrical tie lines leading from the Clow and Buzzard leaseholds. These tie lines had been connected to Southwestern’s distribution system. Exxon then connected tie lines from the Clow and Buzzard leases to its privately owned distribution system, which it was using to distribute electricity to various oil wells in the Loudon oil field. After that, Exxon “wheeled” electricity from a CIPS meter located within CIPS territory through Exxon’s distribution system and, ultimately, to the Clow and Buzzard leases.

On February 13, 1987, Southwestern filed a complaint against CIPS and Exxon before the Commission alleging violations of the Act. Exxon was dismissed from the action after the Commission determined that it was not an “electric supplier” within the meaning of the Act (Ill. Rev. Stat. 1989, ch. 111⅔, par. 403.5) and, thus, not subject to the authority of the Commission. The Commission found in favor of Southwestern and determined that CIPS violated the service-area agreement by selling electricity to Exxon at a CIPS metering point, which was then transported by Exxon to locations within Southwestern’s territory. As a result, the Commission ordered CIPS to discontinue furnishing electrical service to Exxon for its use at the Clow and Buzzard leases. Southwestern Electric Coop., Inc. v. Central Illinois Public Service Co. (June 1, 1989), _ Ill. Commerce Comm’n Rep--(ICC No. ESA 243).

After being denied a rehearing by the Commission, CIPS filed for administrative review of the Commission’s decision in the circuit court of Sangamon County. On November 20, Í989, the circuit court reversed the Commission’s decision, based on its conclusion that the dispute in question was not within the authority conferred on the Commission by the Act.

Specifically, the circuit court found that the Act does not permit the Commission to regulate a customer’s use of electricity. The circuit court held that the Act regulates electric suppliers only and that Exxon is a customer, not an electric supplier. The circuit court further determined that Southwestern was not entitled to serve the Clow and Buzzard leaseholds and that CIPS was lawfully providing electricity to these points from its metering point within CIPS territory. According to the circuit court, Exxon may deliver “its own electricity” wheeled from CIPS territory through Exxon’s distribution system to the leases. In addition, the circuit court held that the Commission’s order was unenforceable as it required Exxon, a non-supplier of electricity, to either disconnect its tie lines to CIPS, or to permit Southwestern to trespass on its property in order to disconnect the lines.

Whether the Commission has the authority to resolve controversies between electric suppliers regarding a customer has not been resolved by the Illinois courts. The Commission determined that both CIPS and Southwestern were electric suppliers and that it had the authority to resolve their dispute. The scope of an agency’s authority is a question of law, not of fact; the determination of the scope of an agency’s power and authority is a judicial function, not one to be finally determined by the administrative agency. (Ted Sharpenter, Inc. v. Illinois Liquor Control Comm’n (1986), 148 Ill. App. 3d 936, 941, 499 N.E.2d 669, 673.) We review the Commission’s decision pursuant to section 12 of the Act (Ill. Rev. Stat. 1989, ch. par. 412), and section 3—112 of the Administrative Review Law (Ill. Rev. Stat. 1989, ch. 110, par. 3-112).

The legislative declaration of the Act, section 2 thereof, states as follows:

“The General Assembly declares it to be in the public interest that, in order to avoid duplication of facilities and to minimize disputes between electric suppliers which may result in inconvenience and diminished efficiency in electric service to the public, any 2 or more electric suppliers may contract, subject to the approval of the Illinois Commerce Commission, as to the respective areas in which each supplier is to provide service.” (Ill. Rev. Stat. 1987, ch. 111⅔, par. 402.)

This court has held that one of the purposes of the Act was “to put to rest the contest between competing utilities as to which would supply what to whom and when.” (Western Illinois Electrical Coop, v. Illinois Commerce Comm’n (1979), 67 Ill. App. 3d 603, 605, 385 N.E.2d 149, 151.) This court has also held that the Commission has the authority to determine the validity and to define the extent of service-area agreements between electric suppliers and to resolve a customer’s request to be served by another electricity provider. (Kruger v. Menard Electric Cooperative (1988), 169 Ill. App. 3d 861, 864, 523 N.E.2d 708, 710.) The Kruger court stated the following in support of its holding:

“The rationale behind giving primary jurisdiction to an administrative agency can be seen where that agency has been granted authority by the legislature over areas requiring the development of expertise and specialized knowledge. Having the agency with the technical expertise first review disputes rather than the courts promotes uniformity of decisions. [Citation.] Review is provided under the Act (Ill. Rev. Stat. 1987, ch. 1112/3, par. 412) through the Administrative Review Law (Ill. Rev. Stat. 1987, ch. 110, pars. 3 — 101 through 3 — 112). The Commission’s expert and specialized knowledge in the area of electric supplier service-area agreements in contrast to the lack of such knowledge in the conventional experience of most circuit judges points out the correctness of the circuit judge’s decision here. Plaintiff must first bring his claim to the Illinois Commerce Commission and not the circuit court.” Kruger, 169 Ill. App. 3d at 864, 523 N.E.2d at 710.

Based on the foregoing, we hold that the Commission’s authority includes the resolution of disputes between electric suppliers arising from service-area agreements and regarding service to customers. In Kruger, this court held that the Commission has the authority to define the extent of a service-area agreement as to a customer. (Kruger, 169 Ill. App.

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

Related

Tanner Electric Cooperative v. Puget Sound Power & Light
911 P.2d 1301 (Washington Supreme Court, 1996)
Illinois Valley Electric Co-Operative, Inc. v. City of Princeton
594 N.E.2d 347 (Appellate Court of Illinois, 1992)
Central Illinois Public Service Co. v. Illinois Commerce Commission
585 N.E.2d 1302 (Appellate Court of Illinois, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
560 N.E.2d 363, 202 Ill. App. 3d 567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-illinois-public-service-co-v-illinois-commerce-commission-illappct-1990.