City of Philadelphia v. Public Utility Commission

275 A.2d 885, 2 Pa. Commw. 70, 1971 Pa. Commw. LEXIS 420
Commonwealth Court of Pennsylvania·Decided April 13, 1971·Published

Opinion

Opinion by

Judge Wilkinson,

The City of Philadelphia and the Southeastern Pennsylvania Transportation Authority (SEPTA) filed an application with the Pennsylvania Public Utility Commission for approval of the construction of crossings where tracks in the extension of the Broad Street subway in the bed of Broad Street will be crossed by city streets from Snyder Avenue south to Pattison Avenue in Philadelphia to accommodate travel to and from the new sports complex being constructed in Philadel[72] phiaat Broad Street and .Pattison. Avenue. . Section 411(a) of the Public Utility Law, Act-of;May- 28p,1937,- .- P..L. 1053,.as amended, 66 P;S. ,1181 .(a)- provides that;: in granting the approval, the P.U:0. should decide who., should pay' for the expense of relocating public utility-; service lines and to' apportion-them.If" appropriated “Such compensation, as' well •: as • the - cost of.construcy tiori.,- relocation, alteration,-protection, or abolition of,; such crossing, and,of facilities at or. adjacent ,;to. such-crossing which are used in any kind of public utility service) shall be borne-and paid," as hereinafter-provided,-by'bhe'..public-utilities'or municipal corporations) concerned, Or by- the Commonwealth,.'in 5such pfoperproportions as the Commission-may,' after, due notice - and hearing determine, unless such proportions are mutually agreed upon arid"' paid'bg the interested'parties.” (Emphasis-supplied'.)- ' ;: ■

Pursuant to this authority, after; an'appropriate: hearing, the P.U.C. ordered the City of Philadelphia to reimburse the"Philadelphia Electric; Cbihp'ány a&d The Bell Tél'éphohe 'Company of’ Pennsylvania’-Wéventy^fíVe1 percent (75%) of the cost of relocation of their iespective lines exclusive of any betterments.

The City of Philadelphia appeals On the .,grounds that it has an agreement With both the PMÍaáelpliik) Electric Company and The Bell Telephone Company of Pennsylvania, that in exchange, for the .right .to ..put lines in the city streets, these. companies would pay .all the expenses of any necessary relocation. .. The wording, of the agreement is: “If,'in .thé’láyíng óf water or gas" pipes) sewers, Or any other municipal. work,' it"shall be.-' come necessary to " change the location of any of the. conduits,: manholes or other structures, they .shall be shifted or altered at the cost'or "expense of)the owners)' to such places as shall be greeted by . the,. Board of Highway. Supervisors.” . . , ■ .. )“

[73] The validity of this agreement has been established and approved by the Supreme Court of Pennsylvania in the case of Philadelphia Electric Co. v. Philadelphia, 301 Pa. 291, 152 A. 23 (1930). The appellees would have us decide that the passage of time and change in situation now places the validity of these previously approved contracts in question, and that the proper forum to contest the validity is in the Court of Common' Pleas on a suit by the City against the appellees to recover back the 75% of the costs it was ordered to pay and not before the P.U.C. We cannot accept this argument.

: The City is not questioning the validity of these agreements which are valid on their face and have the approval of the Supreme Court of Pennsylvania. Since appellees take the position that this is not the appropriate forum in which to question them, then they, as moving parties, will have to initiate what they consider to be an appropriate action in an appropriate forum if they want the invalidity established. The authority of the Commission to allocate costs is expressly limited to those cases where the parties have not agreed on the disposition of the costs and they have not been “paid by the interested parties.” Here, both of these conditions have been met. There is an agreement and the interested parties have paid the costs, for the order is for the Philadelphia Electric Company and The Bell Telephone Company of Pennsylvania to be reimbursed by the City.

Appellees rely on the line of cases that hold the Commission is not bound by the agreements of the parties. These are cases that involve the Commission’s authority to order that work be done. Appellees have not cited a case and we have not found one in which the Commission ordered a reimbursement of a party where an agreement signed by the party to be charged [74] specifically provided that the party to be reimbursed should bear the costs. Further, the cases ■ are quite clear that when the contract between the parties is ignored by the Commission, such action must be based on the public health, welfare and safety. See Pennsylvania Railroad Company v. Pennsylvania Public Utility Commission, 136 Pa. Super. 1, 7 A. 2d 86 (1939); Director General of Railroads v. West Penn Railways Co., 281 Pa. 309, 126 A. 767 (1924); Pittsburgh and Lake Erie Railroad Co. v. Public Service Commission, 75 Pa. Super. 282 (1920). Apparently cognizant of this fact, the Commission is careful to word its opinion as follows: “Upon full consideration of the matters and things involved, we find and determine that the construction of the crossings, as above described, is necessary or [sic] proper for the service, accommodation, convenience or safety of the public and that justice and equity require that the applicants bear their reasonable share of the cost of alterations, relocations and changes required by Philadelphia Electric Company and The Bell Telephone Company of Pennsylvania. . . .”

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City of Philadelphia v. Public Utility Commission, 275 A.2d 885, 2 Pa. Commw. 70, 1971 Pa. Commw. LEXIS 420 (Pa. Ct. App. 1971).

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