City of Monroe v. Louisiana Public Service Commission

97 So. 2d 56, 233 La. 478
CourtSupreme Court of Louisiana
DecidedJune 10, 1957
Docket42968
StatusPublished
Cited by17 cases

This text of 97 So. 2d 56 (City of Monroe v. Louisiana Public Service Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Monroe v. Louisiana Public Service Commission, 97 So. 2d 56, 233 La. 478 (La. 1957).

Opinions

SIMON, Justice.

This case presents a controversy between the city of Monroe and the Louisiana Public Service Commission, both having their respective delegated powers under constitutional authority. Inasmuch as it presents a controversy that is identical with that involved in three other appeals1 pending before this court, all four have been consolidated for purposes of determination here. However, inasmuch as these appeals appear in four different records, bearing four different numbers on our docket, we will render separate decrees in each.

Stripped of all irrelevant and lateral tangibles, the primary question presented in these four appeals is whether the Louisiana Public Service Commission has jurisdiction over the natural gas rates charged by United Gas Corporation in the cities of Monroe and West Monroe, or whether such authority is vested in the respective municipalities.

The record discloses that in 1916 the cities of Monroe and West Monroe entered into separate commutative contracts, each granting franchises for the use of its streets for the transportation, distribution and sale of natural or manufactured gas for said city and its inhabitants for a period of 30 years. During the life of these contracts or franchises, the rights therein were assigned to United Gas Corporation and expired by limitation in 1946.

On April 22, 1947, an election was held in Monroe for the purpose of determining whether its Commission Council should adopt an ordinance granting to United Gas Corporation a gas franchise for a period of 25 years. Subsequent to the favorable vote of the electorate, on April 28, 1947, the Commission Council of the city of Monroe adopted an ordinance granting a gas franchise to said corporation for a period of 25 years and fixing therein specified chargeable service rates. In compliance with the provisions of said ordinance, United Gas Corporation, on May 12, 1947, formally accepted the said franchise; and from the effective date of this ordinance and its acceptance the United Gas Corporation continued to use the streets of the city of Monroe and to receive the benefits under said ordinance without any attempt to effect a change in said rates until [485]*485this present controversy arose. A similar contract or franchise, with certain exceptions not relevant to the issue here involved, was entered into between United Gas Corporation and the city of West Monroe.

On July 1, 1955, United Gas Corporation applied to the Louisiana Public Service Commission to have the rates at which it was distributing and selling natural and manufactured gas increased so as to yield in additional revenue a net rate of 6^/2% upon its invested capital, not only in the cities of Monroe and West Monroe, but in the entire “Monroe Division”, embracing 16 cities and towns located in 8 parishes in North Louisiana, as well as rural services in 7 additional parishes. The cities of Monroe and West Monroe being embraced within the “Monroe Division” were formally cited and notified of the said application. These two cities appeared and challenged the jurisdiction of the Commission on the ground that the power to fix rates at which gas could be sold within their respective municipal limits had been conferred upon them by their respective charters and by Article 6, Section 7 of the Louisiana Constitution of 1921, LSA, by which provision, insofar as the said cities were affected, such jurisdiction was withheld from and was not vested in the Louisiana Public Service Commission. The Commission overruled said exception and rendered an order holding that jurisdiction over public utilities was conferred upon it by the Legislature and that it would proceed to exercise such rate-making power as authorized by Act 19 of 1934, 2nd Ex.Sess., and by LSA-R.S. 45 :1163-1164. Whereupon, these present proceedings were filed for injunctive relief against said Commission.

Temporary restraining orders were issued, and by rules nisi the said Commission was ordered to show cause why a preliminary injunction should not be granted and why its order overruling the cities’ plea to its jurisdiction should not be annulled and the application of the United Gas Corporation dismissed. Though neither a defendant nor a party to either of these suits, United Gas Corporation filed in each suit what was designated as a petition of intervention alleging that it would thereafter file an answer as intervenor to the petition of the cities, which it did on the following day. Exceptions of no cause and no right of action and motions to dismiss were filed thereto by the cities on the ground that United Gas Corporation was illegally attempting to substitute itself as a party-defendant and that the lower court was without right or authority to confer such status upon it. These exceptions and motion were overruled ; and plaintiffs reurge them before us. We shall pretermit the resolution of this procedural question in view of the. conclusions reached by us on the merits of the controversy.

Defendant, Louisiana Public Service Commission, and the United Gas Corpora[487]*487tion filed similar answers to plaintiffs’ petitions; and the cities, reserving all rights under their exceptions and motions, filed answers to the said so-called intervention. After trial, judgments were rendered vacating and setting aside the temporary restraining order, recalling the rules nisi theretofore issued and denying the preliminary injunctions sought by plaintiffs, from which judgments appeals were applied for and granted.2

Thereafter the cities filed pleas of unconstitutionality directed at Acts 6 and 19 of the Second Extra Session of the Legislature of 1934, and at LSA-R.S. 45:1163-1164, together with pleas of estoppel, and sought permanent injunctions against the Commission. Upon trial on the merits, judgments were rendered denying the permanent injunctions as well as other relief sought and holding that the Louisiana Public Service Commission had full and exclusive jurisdiction over the rates charged for natural or manufactured gas by the United Gas Corporation in the cities of Monroe and West Monroe. Appeals from said judgments were applied for and granted.3

Unquestionably the rate-making power, whether exercised by agreement or by the fiat of law, is one of the highest attributes of sovereignty and is inherent in the state as an element of her police power, and which under our constitutional inhibition can never be abridged or irrevocably surrendered. Section 18, Article 19 of the Louisiana Constitution of 1921. However, it is a well-recognized principle that the state may, either expressly or by reasonable implication, delegate to a municipal corporation or to some subordinate commission the lawful exercise of its police power within the corporate limits of such municipality or designated boundaries of such commission.

The Louisiana Public Service Commission was created by Section 3 of Article 6 of the Constitution of 1921 and vested with authority to fix rates for local and statewide public utilities. The Commission was the successor of what was then known as the Railroad Commission of Louisiana whose power had been confined to common carriers, including the fixing of passenger and freight tariffs and service, express rates and telephone and telegraph charges. Article 284 of the Constitution of 1898 and 1913.

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Bluebook (online)
97 So. 2d 56, 233 La. 478, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-monroe-v-louisiana-public-service-commission-la-1957.