Commonwealth Edison Co. v. Illinois Commerce Comm'n

2014 IL App (1st) 132011
Appellate Court of Illinois·Decided October 1, 2014·No. 1-13-2011, 1-13-2012 cons.·Published·Cited by 27 cases

Opinion

Illinois Official Reports

Appellate Court

Commonwealth Edison Co. v. Illinois Commerce Comm’n, 2014 IL App (1st ) 132011

Appellate Court COMMONWEALTH EDISON COMPANY, Petitioner, v. ILLINOIS Caption COMMERCE COMMISSION; CITIZENS UTILITY BOARD; THE CITY OF CHICAGO; and THE PEOPLE OF THE STATE OF ILLINOIS, Respondents.

District & No. First District, Fourth Division Docket Nos. 1-13-2011, 1-13-2012 cons.

Filed July 31, 2014

Held In an action arising from a dispute over the interpretation of section (Note: This syllabus 16-125(e) of the Public Utilities Act providing that an electric utility constitutes no part of the may be liable for damages suffered by customers when more than opinion of the court but 30,000 customers are subjected to a continuous power interruption of has been prepared by the four hours or more, the appellate court concluded that the statute is Reporter of Decisions ambiguous and accepted, as a reasonable and permissible construction for the convenience of of the statute, the Illinois Commerce Commission’s interpretation of the reader.) section 16-125(e) as applying when 30,000 or more customers have their service interrupted during the same four-hour period and rejected the petitioning utility’s contention that the statute applied only to single discrete interruptions that continuously interrupt power to over 30,000 of the same customers for the same four-hour period, and for purposes of the interruptions resulting from a storm that occurred on July 11, 2011, the utility was not entitled to a full waiver of liability pursuant to the exception allowed under section 16-125(e) for “unpreventable damage due to weather events or conditions,” because the utility failed to meet its burden of establishing that the damages were unpreventable under the four decisional criteria advanced by the Commission.

Decision Under Petition for review of orders of the Illinois Commerce Commission, Review Nos. 11-0588, 11-0662. Judgment Appeal No. 1-13-2011, Affirmed. Appeal No. 1-13-2012, Dismissed.

Counsel on Thomas S. O’Neill, of Commonwealth Edison Company, Deborah Appeal Decker, of Exelon Company, John J. Hamill, Kathryn Hunt Muse, and Daniel T. Fenski, all of Jenner & Block, and E. Glenn Rippie, of Rooney Rippie & Ratnaswamy LLP, all of Chicago, for petitioner.

Lisa Madigan, Attorney General, of Chicago (John P. Kelliher, Special Assistant Attorney General, of counsel), for respondent Illinois Commerce Commission.

Lisa Madigan, Attorney General, of Chicago (Carolyn E. Shapiro, Solicitor General, and Evan Siegel, Assistant Attorney General, of counsel), for the People.

Panel JUSTICE EPSTEIN delivered the judgment of the court, with opinion. Presiding Justice Howse and Justice Lavin concurred in the judgment and opinion.

OPINION

¶1 In this consolidated appeal, petitioner Commonwealth Edison (ComEd), challenges two orders of respondent, the Illinois Commerce Commission (the Commission) interpreting and applying section 16-125(e) of the Public Utilities Act (220 ILCS 5/16-125(e) (West 2010)) (the Act) to power interruptions that resulted from a series of severe storm systems that hit northern Illinois in 2011 and caused damage to ComEd’s electric delivery system. The Commission concluded that, pursuant to the language of section 16-125(e), ComEd was liable for damages to the affected consumers. However, with the exception of the storm that occurred on July 11, 2011, the Commission granted ComEd a waiver of liability under section 16-125(e)(1) of the Act where the power interruption resulted from “[u]npreventable damage due to weather events or conditions.” 220 ILCS 5/16-125(e)(1) (West 2010). ¶2 ComEd now contends that the statute only applies where there is a continuous power outage caused by a single event that interrupts power to over 30,000 of the same customers for the same four-hour period and that the Commission erred in deciding that section 16-125(e)(1) applied to the “numerous dispersed and discrete interruptions at different times, in different places, and for different reasons.” ComEd further contends that it is entitled to a full waiver of liability for the July 11, 2011 storm. ComEd also argues that the Commission unlawfully

-2- precluded ComEd from recovering its cost of providing notice to the customers. For the reasons that follow, we dismiss appeal No. 1-13-2012 and affirm the Commission’s decision in appeal No. 1-13-2011.

¶3 BACKGROUND ¶4 Several storm systems struck northern Illinois in 2011 causing significant damage to thousands of ComEd’s customers. One of the storms occurred on February 1, 2011 (Winter 2011 Storm). Six storms occurred in the summer of 2011 (Summer 2011 Storms), specifically on June 8, June 21, June 30, July 11, July 22, and July 27, 2011. More than 2 million of ComEd’s customers experienced a power interruption. After some customers made claims for damages resulting from the power outages, ComEd filed two verified petitions before the Commission. Docket No. 11-0588 was filed on August 18, 2011 and involved the Summer 2011 Storms. Docket No. 11-0662 was filed on September 29, 2011 and involved the Winter 2011 Storm. ComEd sought a determination of the applicability of section 16-125(e) of the Act, which provided, in pertinent part: “(e) In the event that more than *** 30,000 *** customers *** of an electric utility are subjected to a continuous power interruption of 4 hours or more that results in the transmission of power at less than 50% of the standard voltage, or that results in the total loss of power transmission, the utility shall be responsible for compensating customers affected by that interruption for 4 hours or more for all actual damages, which shall not include consequential damages, suffered as a result of the power interruption. *** A waiver of the requirements of this subsection may be granted by the Commission in instances in which the utility can show that the power interruption was a result of any one or more of the following causes: (1) Unpreventable damage due to weather events or conditions.” 220 ILCS 5/16-125(e) (West 2010). ComEd sought a ruling that section 16-125(e) did not apply to the outages at issue because no one single interruption left 30,000 customers without electricity at the same time. In the alternative, ComEd argued that, even if the statute applies, any liability should be waived pursuant to subsection 16-125(e)(1) because the interruptions were “[u]npreventable damage due to weather events or conditions.” ¶5 An administrative law judge (ALJ) held evidentiary hearings in July 2012. ComEd, the Commission’s staff, and the office of the Illinois Attorney General (Attorney General) presented evidence. Respondents, City of Chicago and Citizens Utility Board, also appeared at the hearings. ¶6 The Commission issued its ruling in both cases on June 5, 2013. In two separate orders, the Commission determined that, by its plain and unambiguous language, section 16-125(e) applied to the outages related to the Summer 2011 Storms, as well as the Winter 2011 Storm. The Commission specifically found that “[s]ection 16-125(e) applies when 30,000 or more of ComEd’s customers have their service interrupted during the same four-hour period.” Commonwealth Edison Co., Ill. Com. Comm’n Docket 11-0588, at 16 (Order June 5, 2013); Commonwealth Edison Co., Ill. Com. Comm’n Docket 11-0662, at 18 (Order June 5, 2013). The Commission rejected ComEd’s argument that the General Assembly intended section 16-125(e) to apply only to single discrete interruptions that continuously interrupt power to over 30,000 of the same customers for the same four-hour period.

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