Central Power & Light Co. v. Del Mar Conservation District

594 S.W.2d 782, 1980 Tex. App. LEXIS 2977, 1980 WL 574288
CourtCourt of Appeals of Texas
DecidedJanuary 16, 1980
Docket16229
StatusPublished
Cited by30 cases

This text of 594 S.W.2d 782 (Central Power & Light Co. v. Del Mar Conservation District) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Power & Light Co. v. Del Mar Conservation District, 594 S.W.2d 782, 1980 Tex. App. LEXIS 2977, 1980 WL 574288 (Tex. Ct. App. 1980).

Opinion

OPINION

KLINGEMAN, Justice.

This is a suit by appellee, Del Mar Conservation District (Del Mar) against appellant, Central Power and Light Company (CP&L) to require CP&L to pay to Del Mar two per cent of the gross receipts on electrical services furnished to all customers within the boundaries of Del Mar and to charge electrical rates to its customers within the Del Mar District identical to those within the City of Laredo. The trial court filed extensive findings of fact and conclusions of law. 1

CP&L asserts thirty points of error which fall into the following general .categories: (1) points of error pertaining to jurisdiction of the trial court; (2) points of error pertaining to the Statute of Frauds; (3) points of error pertaining to lack of consideration; (4) points of error pertaining to alleged violations of the Public Utilities Regulatory Act; and (5) points of error asserting that the trial court erred (a) in making certain findings of fact and conclusions of law, and (b) failing to make other findings of fact and conclusions of law.

CP&L asserts that the central dispute is whether the subject matter of this litigation is within the primary jurisdiction of the Public Utility Commission of Texas (PUC), and whether a payment of the two per cent gross receipts to Del Mar is presently legal and proper. Del Mar does not basically disagree as to this contention, but asserts that the controlling questions to be answered by this court are: (1) Did the trial court have jurisdiction to hear this suit? (2) Was the contract unenforceable because of the Statute of Frauds? (3) Was there sufficient consideration to support the contract? and (4) Is the contract rendered unenforceable because of the enactment of Tex.Rev. Civ.Stat.Ann. art. 1446c (Vernon 1978) (Public Utility Regulatory Act).

CP&L is a public utility company in the business of providing electricity to the public in various locations in the State of Texas including the City of Laredo and the Del Mar Conservation District. Del Mar was created by the Legislature in 1959 as a water control and conservation district, and in 1975 it was duly converted to a municipal utility district. It is a governmental body and political subdivision of the State of Texas. It encompasses approximately 2,100 acres in an area generally north of the City of Laredo, but basically surrounded by the City of Laredo. The area contains approximately 800 homes with a population of approximately 2,200 people. It contains an industrial park, schools (both public and private), a fire station, and certain governmental offices. In addition to the residences in such area there are also commercial businesses. CP&L’s power plant for such area is located in the City of Laredo, but is so situated that its transmission lines from the power plant to many of its customers must cross through a part of the Del Mar area.

In the Fall of 1960, an agreement was entered into between CP&L and Del Mar under which CP&L was to pay to Del Mar two per cent of the gross receipts collected for electricity sold within the district and was also to charge the same rates to its utility customers within the district as were charged within the City of Laredo. Del Mar contends and the trial court found that this was done by CP&L in order to obtain an exclusive right to furnish electricity to the district and that as additional consideration CP&L would be granted the use of the streets, alleys, and other public places within the district for distribution and sale of its electrical services throughout the district. CP&L disputes some of these findings. Subsequent to this agreement, for many *785 years CP&L regularly paid Del Mar the two per cent of such gross receipts and charged its utility customers within the district the same rates as were charged within the City of Laredo. The trial court found that pursuant to such agreement CP&L has used the streets, alleys, and other public places within the district for such purposes and Del Mar has maintained such areas for use by CP&L from 1960 down to the present date. This is disputed by CP&L. The Public Utility Regulatory Act was passed in 1975 and gives the Public Utility Commission (PUC) broad powers over the regulation of utility rates and services, effective after September 1,1976. CP&L applied for a rate increase from all municipalities within its service area and also for an increase of rates in rural areas. The PUC entered an order in the early part of 1977 approving certain rates and tariffs. Thereafter, on March 1, 1977, CP&L notified Del Mar it would no longer pay it the two per cent of gross receipts, and, further, that it would charge rates to its customers within the district as set by the Commission’s order (rural rates) which were in excess of the rates charged in the City of Laredo. Sometime thereafter, Del Mar ceased to pay CP&L for the electricity furnished for street lights and began depositing money in the registry of the 49th District Court of Webb County, Texas, for this purpose during the pendency of this suit.

JURISDICTION

Our initial consideration is whether the trial court had jurisdiction over this case. CP&L contends that this dispute is over electric rates and service which are within the primary and exclusive jurisdiction of the Public Utility Commission of Texas. They assert that the trial court did not have jurisdiction to hear this case and that the trial court erred in not granting its plea to the jurisdiction and dismissing the suit. In support thereof, they argue that the law is, that not only where all the issues are within the exclusive jurisdiction of the agency, but also where some parts of the case are within the exclusive jurisdiction of the agency, the doctrine of primary jurisdiction requires that the agency not be bypassed. Relief is to be sought initially by suit before the agency and such remedy exhausted before a party may resort to the courts. In support of this contention they cite Foree v. Crown Central Petroleum Corporation, 431 S.W.2d 312, 316 (Tex.1968); Public Utility Commission v. City of Corpus Christi, 555 S.W.2d 509, 512 (Tex.Civ.App.—Waco 1977), writ ref’d n. r. e. per curiam, 569 S.W.2d 494 (Tex.1978); City of Corpus Christi v. Stowe, 338 S.W.2d 767, 769 (Tex.Civ.App. —San Antonio 1960, no writ); and other similar cases. They ask this court to dismiss this cause due to lack of jurisdiction of the subject matter in the district court.

Del Mar contends that the trial court had jurisdiction to hear this case for the following reasons: (1) it is a case involving a breach of contract and not the setting of rates; (2) CP&L’s contention as to lack of jurisdiction has been considered by the PUC and it rejected the precise jurisdictional argument made by CP&L in this case; and (3) there is nothing in the law that prohibits CP&L from honoring its contract.

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Cite This Page — Counsel Stack

Bluebook (online)
594 S.W.2d 782, 1980 Tex. App. LEXIS 2977, 1980 WL 574288, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-power-light-co-v-del-mar-conservation-district-texapp-1980.