Columbia Gas of New York, Inc. v. New York State Electric & Gas Corp.

56 Misc. 2d 367, 289 N.Y.S.2d 339, 1968 N.Y. Misc. LEXIS 1747
CourtNew York Supreme Court
DecidedFebruary 9, 1968
StatusPublished
Cited by5 cases

This text of 56 Misc. 2d 367 (Columbia Gas of New York, Inc. v. New York State Electric & Gas Corp.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Columbia Gas of New York, Inc. v. New York State Electric & Gas Corp., 56 Misc. 2d 367, 289 N.Y.S.2d 339, 1968 N.Y. Misc. LEXIS 1747 (N.Y. Super. Ct. 1968).

Opinion

David F. Lee, Jr., J.

In this action for a declaratory judgment and a permanent injunction the plaintiff moves for a preliminary injunction, and defendant, by way of cross motion, moves for judgment pursuant to CPLR 3211 (subd. [a]) on the ground that the court does hot have jurisdiction of the subject matter of the complaint, ‘ ‘ or should decline to take jurisdiction, by reason of the fact that jurisdiction thereof is vested in the Public Service Commission ” and upon the ground that the complaint fails to state a cause of action.

The action arises out of the competitive situation between suppliers of gas heating and of electric heating. The parties serve customers in a number of municipalities and areas in common. Defendant has filed with the Public Service Commission a rate schedule, P.S.C. No. 113, Service Classification No. 2, which, under the heading “ Special Provisions,” provides, in part: “ (a) Space Heating Service: Any customer using general service under this service classification and also using electricity as the sole source of space heating in a premises or segregated portion of a premises, may upon written application to the Corporation have the energy used for such space heating, as well as air conditioning and water heating for such electrically heated space, separately metered. The rate for such separately metered service will be 1.33# gross, 1.3# net per kilowatt hour ”.

The same rate schedule provides for both a demand charge ” and an “ energy charge ” for “ general service.” The general service ” rate is substantially higher than the 1.33# gross, 1.3# net ” rate provided in Special Provisions.”

Plaintiff’s complaint alleges, upon information and belief, that: [I]n addition to furnishing energy for space heating, air conditioning and water heating under said special provision for space heating service, defendant has been and is furnishing and offering to customers using electricity for space heating to furnish energy for lighting under that provision rather than at the filed rate for general service.”

In support of plaintiff’s motion for a preliminary injunction there is submitted an affidavit of an attorney employed by plaintiff that states, with reference to a discussion on October 13,1967 with an officer of defendant corporation: “ 3. At that time (he) told me that New York State Electric & Gas Corporation was offering electricity for lighting under the special provision for space heating in its tariff identified as P.S.C. No. 113, Service Classification No. 2, in cases where electricity was used as the [369]*369sole source of space heating and where the lighting load amounted to 25% of the heat loss of a building.”

The affidavit of an officer of the defendant corporation submitted in support of defendant’s motion, and in opposition to plaintiff’s motion, states, in part:

‘1 6. Prior to October 16,1963, the service classification applicable to general service did not contain a Special Provision applicable to space heating service but in 1963 it was recognized that heating by electric energy would be a desirable load to promote, with the result that the Special Provision relating to space heating service was incorporated in the general service Service Classification No. 2. This resulted in electric energy becoming more competitive with other forms of fuel for the heating of buildings.

“7. In recent years, many new buildings have been designed with high intensity lighting, which, in turn, has been included in the building design as a heat source. It is a recognized engineering and architectural principle that recommended levels of illumination make a substantial contribution to the heating of buildings. Modern buildings are designed to take advantage of this engineering principle. For instance, defendant’s office building near Ithaca, completed in 1964, is so designed that heat supplementary to that created by the lighting need not be furnished until the outside temperature falls to a predetermined level of approximately 35 degrees.

“ 8. In recognition of this fact, defendant regards lighting as properly included with other heat sources and measurable by the space heating meter as provided in Special Provision (a) of Service Classification No. 2 where such lighting contributes a substantial portion of the heating requirements of a building at times of maximum heating requirements. This interpretation has been furnished to members of the staff of the Public Service Commission of the State of New York, which is charged with supervision over defendant’s rates and classifications of service. No objections have been raised by the Commission’s staff to such interpretation.”

The plaintiff’s complaint further alleges that “ the furnishing of electricity for lighting under said special provision for space heating by defendant ” violates subdivisions 2 and 5 of section 65 of the Public Service Law, and subdivision 12 of section 66 of the Public Service Law in that “ electric service for lighting is rendered to customers who also use electricity for space heating for less compensation than charged for providing electricity for lighting to other customers; * * * the rate or charge has not been filed with and approved by the Public Service Commission ” [370]*370and “ less compensation is charged for furnishing electricity for lighting to customers also using electricity for space heating than the rates and charges applicable to furnishing electricity for lighting as specified in defendant’s schedule filed and in effect and also because rules or regulations, and privileges or facilities not regularly and uniformly extended to other customers for lighting service are extended to such customers.”

The basic question for determination is that of jurisdiction — whether the court has jurisdiction over the subject matter of the action. The gravamen of the wrong pleaded lies in the allegation that the defendant’s practice violates subdivision 5 of section 65 of the Public Service Law because the rate has not been filed with and approved by the Public Service Commission. Underlying the basic question is the question whether defendant’s practice of charging a special rate for lighting in an all-electric building comes within the provisions of special provision (a). If it does not, defendant’s practice is in violation of subdivision 5 of section 65. If defendant’s practice is authorized by Special Provision (a), plaintiff’s remedy as to its allegations of violations of subdivision 2 of section 65 and subdivision 12 of section 65 of the Public Service Law and unfair competition is with the Public Service Commission rather than in the courts, for these alleged violations essentially would bring into the issue the unreasonableness and discriminatory character of schedules filed with the Public Service Commission. (See Kovarsky v. Brooklyn Union Gas Co., 279 N. Y. 304 and cases cited; Matter of Leitner v. New York Tel. Co., 277 N. Y. 180; Goodman & Co. v. New York Tel. Co., 309 N. Y. 258; Ten Ten Lincoln Place v. Consolidated Edison Co., 190 Misc. 174, affd. 273 App. Div. 903, mot. for lv. to app. den. 273 App. Div. 973, mot. for lv. to app. den. 298 N. Y. 937; Cardone v. Consolidated Edison Co., 197 Misc. 188, affd. 276 App. Div. 1068, mot. for lv. to app. den. 277 App. Div. 769.)

Plaintiff’s complaint alleges:

“ 13.

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Bluebook (online)
56 Misc. 2d 367, 289 N.Y.S.2d 339, 1968 N.Y. Misc. LEXIS 1747, Counsel Stack Legal Research, https://law.counselstack.com/opinion/columbia-gas-of-new-york-inc-v-new-york-state-electric-gas-corp-nysupct-1968.