CONNOR, Justice.
The factual aspects of this case are relatively simple and stand in stark contrast to the voluminous and far-reaching legal arguments which have been put forth by both parties.
Basically there is no dispute that the Park Lanes Bowling Alley was served with electrical power by the Anchorage City Utility Department, that the bowling alley requested Chugach Electric Association (hereafter referred to a Chugach) to provide service, that Chugach began constructing connecting lines to nearby, existing Chugach lines, and that the bowling alley is both within, the city limits and within the service area of Chugach, as set forth in Chugach’s state certificate of public convenience and necessity. The extension of service contemplated by Chugach was to cost in excess of $1,000; yet Chugach did not apply for a city building permit, which was required by city ordinance when more than $1,000 worth of work of this type was
done.
After starting the work Chugach did apply for a permit and it was refused. The refusal was based on a determination by a city officer that the existing facilities, those of the city, were adequate to serve the area. This was tantamount to determining that the public convenience and necessity would not be served by the granting of the permit. The city obtained a permanent injunction which prohibits Chugach from serving the bowling alley. Chugach has appealed from this granting of an injunction and claims that the city has no power to stop it from serving the bowling alley.
Although a battery of arguments has been offered by each side to this dispute, there are basically only two questions on this appeal: Was an injunction the proper remedy to enforce a criminal ordinance? May the city validly deny Chugach permission to serve the bowling alley? Because a resolution of the second issue will necessarily dispose of this case, we need not address our attention to the first issue.
The problem simply stated is this: Chu-gach has been requested by Park Lanes, a member of the Chugach cooperative that is presently being served by the city, to provide Park Lanes with electric utility service. The city maintains that Chugach must comply with its ordinance which requires the obtaining of a permit prior to commencing work of the nature of that contemplated by Chugach. Chugach responds by pointing out to the city that only the Public Service Commission has the power to prohibit it from extending its service, that the PSC has already issued a certificate of public convenience and necessity and, therefore, it is unnecessary for it to obtain a permit from the city.
At the centre of this electrical storm are several constitutional provisions, a handful of statutes, and a city ordinance.
There is no dispute over the fact that appellant Chugach has been certified to serve in an area within the corporate limits of the city, nor the fact that Park Lanes is within said corporate limits. The argument is this: Having established that the State of Alaska, through the Public Service Commission, has determined that the public convenience and necessity requires that appellant be allowed to furnish electric utility service in an area which includes part of the city, can the city short-circuit this determination by refusing to issue a permit as required by its ordinance?
Because of the nature of the legal issues raised, each party to this dispute has attempted to create a fine filament of argument in support of its position, plugging in the various statutes and constitutional provisions where relevant. Because of the interplay of the arguments, it is not completely possible to follow the thrust of some of the points made. We have, nevertheless, attempted to resolve some of the minor issues raised, as well as disposing of the problem which is central to this appeal.
Appellant argues that although this court has interpreted the Alaska Constitution as establishing a broad base upon which to erect a municipal code,
the power of home rule cities is not without limitation.
Chugach directs our attention to AS 29.08.-010, AS 29.08.013, and AS 29.08.200 as specific instances in which the legislature has imposed limitations on the powers of home rule cities,
and argues further that the legislature has preempted the field in which the city has attempted to exert regulation in the case before us. But because the legislature has created such limitations on home rule powers, it does not follow that the state, under entirely different statutory provisions, has necessarily divested the city of all or part of its power to regulate Chugach. Our decision in this case does not hinge on the fact that these other limitations have been created by statute.
Appellant argues that because of the city’s own charter, the city is without power to regulate it.
This assumes an answer to the problem before it has been resolved. The very issue in this case is whether the state has implicitly carved out an area that is out of bounds to the city. If, in fact, such a prohibition has occurred, it matters little that the charter merely mirrors what is already stated in article X, section 11, of the Alaska Constitution, to the effect that a “home rule borough or city may exercise all legislative powers not prohibited by law * * Consequently, the charter provision sheds no light upon the problem.
A problem of minor importance involves the status of appellant. City has admitted that Chugach is indeed a “public utility” as defined in the Alaska Public Service Commission Act,
but denies that appellant is an Alaska nonprofit electric cooperative corporation subject to the Electric and Telephone Cooperative Act.
The trial
court found that appellant “is a rural electric cooperative,” and it also appears this issue was determined in the action entitled In re 1960 Delinquent Real Property Taxes and Assessments in City of Anchorage, Superior Court, Third Judicial District, No. 61-1662 (9/21/64). However, the matter may remain static and undetermined on this appeal, since our disposition of this case does not require application of AS 10.-25.
The court below found that appellant’s facilities were not authorized by permit and constituted a nuisance and encroachment upon public rights-of-way. Chugach argues that pursuant to AS 10.25.010,
which grants to cooperatives the right to construct transmission lines across publicly owned lands, no such finding should have been entered. Because this narrow issue will not aid us in our disposition of this case, and because the state legislature has recently directed its attention to this problem, we decline to rule upon this point.
In generating its counterarguments, the city claims that under any circumstances, municipalities are exempt from control by the PSC, due to its limited power.
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CONNOR, Justice.
The factual aspects of this case are relatively simple and stand in stark contrast to the voluminous and far-reaching legal arguments which have been put forth by both parties.
Basically there is no dispute that the Park Lanes Bowling Alley was served with electrical power by the Anchorage City Utility Department, that the bowling alley requested Chugach Electric Association (hereafter referred to a Chugach) to provide service, that Chugach began constructing connecting lines to nearby, existing Chugach lines, and that the bowling alley is both within, the city limits and within the service area of Chugach, as set forth in Chugach’s state certificate of public convenience and necessity. The extension of service contemplated by Chugach was to cost in excess of $1,000; yet Chugach did not apply for a city building permit, which was required by city ordinance when more than $1,000 worth of work of this type was
done.
After starting the work Chugach did apply for a permit and it was refused. The refusal was based on a determination by a city officer that the existing facilities, those of the city, were adequate to serve the area. This was tantamount to determining that the public convenience and necessity would not be served by the granting of the permit. The city obtained a permanent injunction which prohibits Chugach from serving the bowling alley. Chugach has appealed from this granting of an injunction and claims that the city has no power to stop it from serving the bowling alley.
Although a battery of arguments has been offered by each side to this dispute, there are basically only two questions on this appeal: Was an injunction the proper remedy to enforce a criminal ordinance? May the city validly deny Chugach permission to serve the bowling alley? Because a resolution of the second issue will necessarily dispose of this case, we need not address our attention to the first issue.
The problem simply stated is this: Chu-gach has been requested by Park Lanes, a member of the Chugach cooperative that is presently being served by the city, to provide Park Lanes with electric utility service. The city maintains that Chugach must comply with its ordinance which requires the obtaining of a permit prior to commencing work of the nature of that contemplated by Chugach. Chugach responds by pointing out to the city that only the Public Service Commission has the power to prohibit it from extending its service, that the PSC has already issued a certificate of public convenience and necessity and, therefore, it is unnecessary for it to obtain a permit from the city.
At the centre of this electrical storm are several constitutional provisions, a handful of statutes, and a city ordinance.
There is no dispute over the fact that appellant Chugach has been certified to serve in an area within the corporate limits of the city, nor the fact that Park Lanes is within said corporate limits. The argument is this: Having established that the State of Alaska, through the Public Service Commission, has determined that the public convenience and necessity requires that appellant be allowed to furnish electric utility service in an area which includes part of the city, can the city short-circuit this determination by refusing to issue a permit as required by its ordinance?
Because of the nature of the legal issues raised, each party to this dispute has attempted to create a fine filament of argument in support of its position, plugging in the various statutes and constitutional provisions where relevant. Because of the interplay of the arguments, it is not completely possible to follow the thrust of some of the points made. We have, nevertheless, attempted to resolve some of the minor issues raised, as well as disposing of the problem which is central to this appeal.
Appellant argues that although this court has interpreted the Alaska Constitution as establishing a broad base upon which to erect a municipal code,
the power of home rule cities is not without limitation.
Chugach directs our attention to AS 29.08.-010, AS 29.08.013, and AS 29.08.200 as specific instances in which the legislature has imposed limitations on the powers of home rule cities,
and argues further that the legislature has preempted the field in which the city has attempted to exert regulation in the case before us. But because the legislature has created such limitations on home rule powers, it does not follow that the state, under entirely different statutory provisions, has necessarily divested the city of all or part of its power to regulate Chugach. Our decision in this case does not hinge on the fact that these other limitations have been created by statute.
Appellant argues that because of the city’s own charter, the city is without power to regulate it.
This assumes an answer to the problem before it has been resolved. The very issue in this case is whether the state has implicitly carved out an area that is out of bounds to the city. If, in fact, such a prohibition has occurred, it matters little that the charter merely mirrors what is already stated in article X, section 11, of the Alaska Constitution, to the effect that a “home rule borough or city may exercise all legislative powers not prohibited by law * * Consequently, the charter provision sheds no light upon the problem.
A problem of minor importance involves the status of appellant. City has admitted that Chugach is indeed a “public utility” as defined in the Alaska Public Service Commission Act,
but denies that appellant is an Alaska nonprofit electric cooperative corporation subject to the Electric and Telephone Cooperative Act.
The trial
court found that appellant “is a rural electric cooperative,” and it also appears this issue was determined in the action entitled In re 1960 Delinquent Real Property Taxes and Assessments in City of Anchorage, Superior Court, Third Judicial District, No. 61-1662 (9/21/64). However, the matter may remain static and undetermined on this appeal, since our disposition of this case does not require application of AS 10.-25.
The court below found that appellant’s facilities were not authorized by permit and constituted a nuisance and encroachment upon public rights-of-way. Chugach argues that pursuant to AS 10.25.010,
which grants to cooperatives the right to construct transmission lines across publicly owned lands, no such finding should have been entered. Because this narrow issue will not aid us in our disposition of this case, and because the state legislature has recently directed its attention to this problem, we decline to rule upon this point.
In generating its counterarguments, the city claims that under any circumstances, municipalities are exempt from control by the PSC, due to its limited power. Here, also, the state legislature has recently spoken on this matter.
Because neither the briefs nor oral argument were directed to the new act, we will make no determination of this issue.
Respondent points out that under AS 42.05.390,
the legislature has granted only limited authority to the PSC where matters of additional construction, improvements or extensions of service are involved. We cannot read the statute so narrowly. AS 42.05.193
provides that public utilities, other than those owned and operated by a municipality,
must obtain certificates of convenience and necessity before they may provide services within a given area. AS
42.05.640
defines “service” as: “used in the broadest and most inclusive sense and includes the use or accommodation given to consumers or patrons, * * * ” As such, this extension of services should be accorded Chugach on the basis of its having obtained a certificate of convenience and necessity for the area wherein Park Lanes is located.
In stating its resistance to the argument that the state has preempted in the area of regulation at issue because the state has “occupied the field,” the city cites Antieau
for the proposition that courts should not entertain such a theory as a resolution to problems of this type. Although we are impressed by Antieau’s argument,
we cannot adopt the narrow alternative to this approach suggested by city, namely, that each piece of legislation that restricts the powers of home rule cities should be specifically labeled as so doing. We think this would place an unwarranted burden upon the state legislature and would accomplish very little. Furthermore, it is not for the court to direct the legislature as to the form it uses in enacting the laws of our state. Accordingly, we find it unnecessary for the legislature to spell out the supposed effect of its legislation each time it produces a new bill.
We have finally reached the question which goes to the very nucleus of the problem: Can the city limit the operations of Chugach by denying it a permit to extend its services? We have come to the conclusion that the city ordinance must yield to the PSC determination that appellant may operate within the certified service area. The ability of a municipality to subvert the judgment of the PSC that the public convenience and necessity require an electrical supplier to furnish electricity, even within the corporate limits of that municipality, would severely impair the proper functioning of the commission. Because the legislature has not spoken of this problem in terms applicable to this particular case,
it becomes the responsibility of
this court to resolve this problem in a manner which comports with our understanding of the present laws of this state.
The ordinance involved
provided in effect that no supplier could provide a customer with electric power, if the providing of the service required an expenditure of monies in excess of $1,000.
In conflict with this ordinance are numerous statutes
which invest in the Public Service Commission the power to regulate, to an extent permitted by law, the transmission of electric current. At the outset it should be made clear that we approach a resolution to this problem by construing it as a conflict between the application of the municipal ordinance and the pertinent state statutes which vest power in the PSC, rather than a situation where the state has implicitly preempted the entire field. For this reason, our opinion today in no way clashes with our holding in Rubey v. City of Fairbanks,
456 P.2d 470 (Alaska 1969). Nor do we consider our holding inconsistent with other rulings of this court which established guidelines for the regulation of public and municipal utilities.
Rather,
the question before us is one of first impression : May the city create its own monopoly by simply refusing to grant Chugach a permit as it requires by ordinance ?
Although the powers of home rule cities vary depending upon the bases for the grants of such power,
conflicts between state statutes and municipal ordinances generally have been modulated by ruling in favor of the statutes. Many state courts, while not clearly enunciating the bases for their holdings, have in fact followed a rule which for the sake of convenience can be referred to as the “local activity rule.”
This rule was not born of a need to preclude municipal legislation when the state has preempted an entire area of law. Instead, it is merely an expedient method for resolving an impasse between state statutes which seek to further a specific policy and municipal ordinances which either directly or collaterally impede this implementation.
In considering the case before us, we feel that this rule will adequately serve to eliminate the existing friction between our state statutes vesting power in the PSC and the city’s ordinance. Here, the activity sought to be regulated is unquestionably of a state-wide concern — the denomination of service areas wherein a public utility may operate. Even assuming some doubt as to a correct characterization of the activity,
we would be inclined to rule in favor of the legislative authority of the state. Abbot v. City of Los Angeles, 53 Cal.2d 674, 3 Cal.Rptr. 158, 349 P.2d 974 (1960). This does not mean that the city of Anchorage is without jurisdiction to charge Chugach with the responsibility of meeting reasonable standards of construction, limiting its joint use of public ways so as not to unduly restrict their utility, obtaining and filing plans, and providing the city with other information to allow for the proper administration of municipal police powers. It is only that part of the ordinance which is applied inconsistently with our state laws that must yield. United Advertising Corp. v. Borough of Raritan, 11 N.J. 144, 93 A.2d 362 (1952). It means, simply, that the city may not deny Chugach the right to provide the electrical service requested by Park Lanes.
The statutes involved herein,
while not evincing a clear manifestation of intent to occupy the entire field of public utility regulation, certainly demonstrate a strong policy in favor of treating such regulation as a matter of state-wide concern. The type of service provided and the area wherein it shall be provided are the subjects of specific statutory provisions. On the basis of these laws, the Public Service Commission has concluded that it will best serve the needs of the public if Chugach is allowed to provide service in a given area. This determination should not be allowed to miscarry because the city of Anchorage withholds a permit.
Our holding attempts to comport with the current trend of authority in dealing with problems of this nature.
It also seeks to balance the needs of the entire state against the desirable autonomy which only home rule can provide. We find that the scales tip heavily in favor of the state. Accordingly, the city ordinance cannot stand.
The decision of the court below is reversed and the case is remanded with instructions to dissolve the permanent injunction.
BONEY, C. J., not participating.