Central Rural Electric Cooperative v. City of Stillwater

2006 OK CIV APP 121, 146 P.3d 811, 2006 Okla. Civ. App. LEXIS 98, 2006 WL 3300339
CourtCourt of Civil Appeals of Oklahoma
DecidedMarch 21, 2006
DocketNo. 101,830
StatusPublished

This text of 2006 OK CIV APP 121 (Central Rural Electric Cooperative v. City of Stillwater) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Rural Electric Cooperative v. City of Stillwater, 2006 OK CIV APP 121, 146 P.3d 811, 2006 Okla. Civ. App. LEXIS 98, 2006 WL 3300339 (Okla. Ct. App. 2006).

Opinion

Opinion by

JANE P. WISEMAN, Presiding Judge.

T1 In this appeal involving application of the Electric Restructuring Act of 1997, 17 ©.S8.2001 & Supp.2005 §§ 190.1 through 190.20, Appellants, City of Stillwater and Stillwater Utilities Authority (collectively, Stillwater) and City of Tonkawa and Tonka-wa Municipal Authority (collectively, Tonka-wa), appeal an order of the trial court granting injunctive relief against them and in favor of Appellees, Central Rural Electric [812]*812Cooperative (CREC) and Kay Electric Cooperative (KEC). KEC counter-appeals the trial court's finding that Tonkawa could extend its electrical facilities outside its corporate boundaries to serve Tonkawa's sewage lift station. Having reviewed the record and applicable law, we find that the trial court erred in granting injunctive relief to CREC and KEC, but did not err in ruling that Tonkawa could extend its electrical facilities to serve its sewage lift station.

12 The facts of this case are undisputed and are partially recited in the trial court's judgment as follows:

1. [CREC and KEC] are Rural Electric Cooperatives created pursuant to the Rural Electric Cooperative Act, 18 0.8. § 487 et seq. and are engaged in the business of delivering electric service to users thereof at retail.
2. [Stillwater and Tonkawa] are engaged in the business of delivering electric service to users thereof at retail.
3. Defendants, Stillwater and Tonkawa through their individual actions have each elected to participate in electric restructuring and retail consumer choice as provided in the Electric Restructuring Act of 1997, 17 0.8. § 190.1 et seq.
4. Defendant, Stillwater since electing to participate in the 1997 act has extended its electric service outside the City limits of Stillwater to consumers situated within the Certified Territory of CREC, established pursuant to 17 0.8. § 158.24.
5. Defendant, Tonkawa since its election to participate in the 1997 act has extended its electric service outside the city limits of Tonkawa to a sewage lift station owned by Tonkawa and to a barn property to which Tonkawa had furnished electric service for many years, both of which are situated within the certified territory of [KEC], established pursuant to 17 0.8. $ 158.24.

It is also undisputed that the consumer to which Stillwater provided service had not been served previously by CREC and had requested service from Stillwater, and the customer and sewage station to which Tonka-wa provided service had not been served previously by KEC.

13 CREC and KEC sued Stillwater and Tonkawa, respectively,1 asking that the trial court enjoin Stillwater and Tonkawa from extending any electric distribution system lines outside their corporate city limits and asking that it require Stillwater and Tonka-wa to remove any electrical disposition poles and lines from the areas located outside their corporate limits. On motions for summary judgment filed by CREC and KEC, the trial court held that, because Stillwater and Ton-kawa have opted to become subject to the Electric Restructuring Act, they are prohibited from extending service to consumers located in another supplier's territory as established under the Retail Electric Supplier Certified Territory Act, 17 0.98.2001 & Supp. 2005 §§ 158.21 through 158.82. The trial court concluded, however, that Tonkawa did not violate the law by extending service to its own sewage lift station. The trial court therefore granted the injunctive relief requested by CREC and KEC, with the exception of service by Tonkawa to its sewage lift station. Stillwater and Tonkawa appeal the order granting injunctive relief to CREC and KEC, and KEC counter-appeals the order to the extent it allows Tonkawa to provide service to its sewage lift station.

T4 This appeal requires interpretation of the Electric Restructuring Act (the "Act") and application of the Act to undisputed facts; it therefore presents a question of law which we review de novo, giving no deference to the trial court's ruling. See Conoco Inc. v. Agrico Chemical Co., 2004 OK 83, 19, 115 P.3d 829, 888.

15 The Legislature's stated purpose for passage of the Act is to "provide for the orderly restructuring of the electric utility industry in the State of Oklahoma in order to allow direct access by retail consumers to the competitive market for the generation of [813]*813electricity while maintaining the safety and reliability of the electric system in this state." 17 0.8.2001 $ 190.2. Although the Legislature set July 1, 2002, as the target date for implementation of a competitive market, it also recognized that it is necessary to thoroughly assess the issues and consequences to "ensure a successful transition to a competitive marketplace." 17 0.8.2001 § 190.2. To achieve these goals, the Legislature established the Joint Electric Utility Task Force (Task Force) to study the relevant issues relating to restructuring. 17 0.8. 2001 § 190.4(A). The Act makes it clear that restructuring was not effective upon passage of the Act, but would require future implementing legislation and regulations after study by the Task Foree. 17 0.98.2001 § 190.4. See, e.g., § 190.4(B)(1) (appropriate rules "shall be promulgated" regarding reliability and safety); $ 190.4(B)(8), (5) (contemplating establishment of a process to allow consumers to choose); § 190.4(B)(7) (contemplating establishment of "firm service territories ... by a date certain, if not currently established by law in order to avoid wasteful duplication of distribution facilities"); § 190.4(B)(10), (11) (contemplating establishment of a defined transition period, during which time rates would not rise). The statute establishing the Task Force was a sunset law that expired on January 1, 2008, and the authorizing legislation was repealed effective July 1, 2008. 17 O.S. Supp.2008 § 190.6.

T6 Prior to expiration of the Task Force, the Legislature, effective June 4, 2001, set up the Electric Restructuring Advisory Committee to the Governor and the Legislature to continue examining restructuring issues. 17 0.8.2001 § 190.20. Section 190.20(G@) provided that, notwithstanding any prior legislation setting an implementation goal,

[Clonsumer choice of retail electric energy suppliers shall not be implemented in this state until: 1. The final report of the Advisory Committee has been received by the Governor, the President Pro Tempore of the Senate and the Speaker of the House of Representatives; and 2. Electric restructuring enabling legislation is adopted by the Legislature and signed by the Governor.

Like the legislation establishing the Task Force, § 190.20 was a sunset law and expired by its terms on January 1, 2005, with the authorizing legislation being repealed effective July 1, 2005. 17 0.8. Supp.2005 § 190.20.

17 The Act's definition of "retail electric service distributor" does not include "[alny municipal corporation or beneficial trust thereof or the Grand River Dam Authority." 17 0.8.2001 $ 190.3(8). But, municipal corporations and beneficial trusts can choose to be bound by the Act:

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Related

Conoco Inc. v. Agrico Chemical Company
2004 OK 83 (Supreme Court of Oklahoma, 2004)

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Bluebook (online)
2006 OK CIV APP 121, 146 P.3d 811, 2006 Okla. Civ. App. LEXIS 98, 2006 WL 3300339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-rural-electric-cooperative-v-city-of-stillwater-oklacivapp-2006.